16 April 2025: PIB Summary For UPSC

1. NITI Aayog launches Report on ‘Unlocking Over $25 Billion Export Potential – India’s Hand & Power Tools Sector’

(Source – https://pib.gov.in/PressReleasePage.aspx?PRID=2121901 )

Topic: GS3 – Indian Economy

Context

NITI Aayog’s new report outlines strategies to boost India’s hand and power tools exports to over $25 billion by 2035. It highlights sectoral challenges, global market trends, and key reforms needed to strengthen India’s position as a manufacturing hub.

 

Sector Potential and Growth Opportunity

• NITI Aayog released a report highlighting the economic potential of India’s hand and power tools sector.
• The sector can significantly contribute to India’s growth and aims to position India as a global manufacturing hub.
• The report sets a roadmap to enhance India’s global competitiveness and increase its market share in exports.

Global Market Overview

• The global hand and power tools market is valued at $100 billion, projected to reach $190 billion by 2035.
• Hand tools currently form a $34 billion market, expected to grow to $60 billion.
• Power tools represent $63 billion, projected to rise to $134 billion, largely driven by electrical tools.

India’s Current Export Share

• India exports $600 million worth of hand tools (1.8% market share).
• Power tools exports stand at $470 million (0.7% market share).
• In comparison, China holds 50% of hand tools and 40% of power tools export market share.

Future Export Target and Employment Potential

• India aims to achieve $25 billion in exports from this sector in the next decade.
• This could generate up to 35 lakh jobs, with a 10% share in power tools and 25% in hand tools.

Key Challenges

• India faces a 14–17% cost disadvantage due to higher input costs, lower productivity, and logistic inefficiencies.
• Raw material costs, overtime wage restrictions, interest rates, and inland transport add to the challenges.

Strategic Recommendations

• Develop clusters: Create 3–4 modern industrial clusters over 4,000 acres under the PPP model.
• Reform markets: Ease Quality Control Orders, import duties, and simplify export schemes.
• Bridge cost support: Provide ₹8,000 crores support if needed, expected to yield 2–3x tax returns.

Practice Question:  How can India enhance its global competitiveness in the Hand and Power Tools sector to achieve its $25 billion export target? (150 Words /10 marks)

 

Check this out 15 April 2025: PIB Summary For UPSC