New Delhi, 15 April (IANS). NITI Aayog said on Tuesday that the country has a big opportunity in the hand and power tool sector and exports can be increased to $ 25 billion in the next 10 years.
The Commission said in a report that the global market of the Hand and Power Tool Sector is currently $ 100 billion, which is likely to increase by 2035 to about $ 190 billion. The hand tool market is expected to increase from $ 34 billion to $ 60 billion and power tool market to reach $ 134 billion as compared to $ 63 billion. Currently, China is dominated by hand and power tools exports. Its stake in the hand tool is 50 percent and 40 percent in the power tool. At the same time, India holds 1.8 per cent and 0.7 per cent respectively.
Hand and power tools include hand and electric tools, which are used by plumbers, electricians, mechanics etc.
The report said that by 2035 India’s exports in the region will increase from one billion dollars to $ 25 billion. Also, 35 lakh people will get employment. However, some necessary changes have also been recommended for this.
NITI Aayog Deputy Chairman Suman Berry emphasized on reducing compliance costs, engineering and skill development, bridge finance and commercialization of innovation for the development of this industry. He said that this is a labor -based area and the state governments should simplify the compliance rules. He said that after China, this industry is flourishing in Germany as skills are available in large quantities.
NITI Aayog CEO BVR Subramaniam said that this industry flourishes in the cluster. There is a big cluster in Punjab. There is a cluster around Delhi, a cluster in Gujarat. There is no big industry. There are small companies, MSMEs that form them. He said that at this time, American tariffs can be less than China and other countries, and if noted properly, results can be revealed in six to eight months.
Program Director Sanjit Singh at NITI Aayog gave a presentation on possibilities in the Hand and Power Tool in the program. He said that the export of hand tools will increase from Rs 5,700 crore to Rs 1,25,000 crore by the year 2035. At the same time, the number of people getting employment will increase from the current 10 thousand to 24 lakhs. Power tool exports are expected to increase from Rs 4,800 crore to Rs 1,00,000 crore and employment is expected to increase from 67 thousand to 13,87,000.
He said that its progress has been disrupted so far due to high cost of raw materials, high import duty on steel and other raw materials, high cost of logistics and power, expensive capital and progress in technology.
The Commission has recommended the construction of world -class clusters, permission for 300 hours overtime a year and extending the permission of the daily 10 hours to promote the region. It is also recommended to provide cheap electricity and land. The Commission has said that the maximum limit of remuneration on overtime like Western countries can be limited at one and a half times the original remuneration.
NITI Aayog member Dr. VK Saraswat said that we also have to see how much we have to import for that export because we are also dependent on imports for many parts in the final product. He said that apart from this, attention will also have to be paid to research and development. Currently 10 Indian companies are making power tools, but no one is originally Indians. These are foreign companies that are running their Indian unit in collaboration with an Indian company. He said that there is nothing in the name of Indian in terms of design and technology.
Another member of NITI Aayog, Arvind Virmani said that the states also have to understand its importance. Labor, land and electricity are under the jurisdiction of state governments. By giving subsidy to domestic consumers, more electricity is charged from the industry from the industry, while the truth is that if the industry grows, the common people will get better employment and they will have more money.
Speaking to the news agency IANS on the sidelines of the program, Ashwani Kumar, president of the Federation of Indian Export Organizations, said that the Hand and Power Tools sector is going to be the largest sector in 10 years from today. This report of NITI Aayog shows the roadmap of how to make it a export market of $ 25 billion from one billion dollars. It will have a huge contribution in the creation of developed India in a very short time.
Sanjit Singh told IANS that the next five-ten years are very important in achieving Prime Minister Narendra Modi’s goal of ‘Developed India’ and ‘Make in India’. The Hand and Power Tools sector in our changing MSME sector is moving very fast. If we walk this roadmap from today itself, then the path will be easy.
-IANS
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