Market scenario India: Growth of the machine tool industry
The Indian machine tool industry is growing at a steady pace and with the continuous support of the government aims to grow even further ahead.
The Indian machine tool industry has slowly but steadily positioned itself in the global market. The current market size of machine tools in India for 2016–2017 is estimated to be around 1.78 billion dollars of which the domestic production accounts for about 47 % of the total consumption.
The industry registered an impressive growth rate of 23 % during 2016–2017, states the Indian Machine Tool Manufacturers’ Association (IMTMA). In terms of global rank, India is 12th in production and 8th in consumption as per the latest Gardner Research Survey 2017.
Catalysts for growth
In 2014, the Indian Government began a nationwide initiative – the ‘Make in India’ to boost the manufacturing industry. The country under the leadership of Narendra Modi, the Prime Minister of India, invited many companies from across the globe to ‘Make in India’ by granting them with certain concessions.
For instance, the global security and aerospace company, Lockheed Martin signed a landmark agreement with the Indian-based company Tata Advanced Systems Ltd (TASL) to produce the single-engine fighter jet F-16 Block 70 in India. The move will lead to the development of India’s private aerospace and defense manufacturing capacity.
An insight into the global machine tool market
The electronics sector has also been making waves. The Chinese smartphone producer Xiaomi has recently announced setting up four new plants in the country to manufacture smart phones. It will also include the country’s first Surface Mount Technology plant that will manufacture printed circuit board assembly units.
In the automobile industry too, many global players have set up their production units in India for exporting their vehicles to other countries. For example, the German automotive company Volkswagen has plans to invest around 1 billion euros in the country over the next few years to develop six new models.