Niti report pitches for incentive scheme for hand & power tools

The government should extend targeted support to domestic industries to capture a 10% global market share in power tools and a 25% share in hand tools within a decade, by leveraging geopolitical opportunities, including US tariffs on China, a new NITI Aayog report has recommended, sources told FE.

- PRASANTA SAHU

The aim is to overcome a 14-17% cost disadvantage that domestic industries face compared to competitors.

The report has suggested an allocation of ₹12,000 crore for cluster development, to be recouped through leasing fees and operations & maintenance (O&M) charges, with an additional ₹45,000 crore from industry players over the next decade.

This ambition could generate approximately 3.5 million jobs, significantly boosting employment and economic development in the country. While the global market for tools stands at around $100 billion today and is projected to reach $180 billion by 2035, India's share remains a fraction, with exports of $600 million (1.8% market share) in hand tools and $425 million (0.7%) in power tools. China's near-50% market dominance underscores the scale of the challenge, yet recent shifts, such as tariffs on Chinese goods and rising costs, offer India a rare window to redefine its role.