Markets Growth of the machine tool industry in India
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 USD1.78 billion, with domestic production accounting for about 47% of the total consumption.
The industry registered an impressive growth rate of 23% in 2016–2017, the Indian Machine Tool Manufacturers’ Association (IMTMA) notes. In terms of global ranking, 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, Prime Minister of India, invited many companies from across the globe to “Make in India” by granting them 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.
The electronics sector has also been making waves. The Chinese smartphone producer Xiaomi 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 in the country over the next few years to develop six new models.
India's machine tool exports reached about USD55.3 million in FY17 (fiscal year 2017), according to P Ramadas, President of IMTMA. He said that Indian machines are price competitive in their range, making them suitable for exports. Some of the Indian machine tool players are also exporting to Germany, Turkey, China, Middle East, Russia, South Korea, etc.
The future of the Indian machine tool industry is poised for growth and is, at the moment, very bullish as far as the metal-cutting industry is concerned.
Global players can get updated on the latest industry happenings of the Indian machine tool sector by attending the Asian Machine Tool Exhibition, which is scheduled to be held from 6-9 July 2018 in New Delhi, India. The event will showcase the most recent technologies in the sector and also expected to act as a meeting point for business interactions.
This article first appeared on www.maschinenmarkt.international.