The Indian machine tool industry is globally ranked 10th in production and 8th in consumption, according to Gardner’s world machine tool output survey 2018. The machine tools market in India is expected register a CAGR of almost 13% during from the year 2020-24. The consumption of Machine Tools is approximately US$ 3.2 billion, with domestic production accounting for approx. US$ 1.5 Billion reached in 2019-20.
The Indian Machine Tool sector is riding on bullish wave fuelled by huge investments in various economic sectors such as Infrastructure, Defense, Aerospace, Automobiles, Heavy Engineering, General Engineering, Ship Building, Railways, Construction Equipments, Agricultural Equipments, Textiles Machinery Consumer Appliances & other products etc.
Today, the Indian machine tools market is being driven by the rising industrial automation and latest technologies and latest global standards. In addition, the adoption of 3D printing technology is anticipated to boost the growth of the machine tools market in India. Industrial automation is becoming a norm in various industries because it provides higher reliability and productivity.
Indian Machine Tools industry is moving towards increasingly sophisticated CNC machines, driven by demand from key user segments, such as automobiles and consumer durables, aerospace, etc.
Recently Indian Machine tools have witnessed high demand from diverse sectors including automobiles, defence, medical and aerospace. Automobiles are the main demand driver for the sector and the rising number of global car makers establishing their manufacturing bases in India has led to an increase in demand for machine tools.
In addition to the above, following factors are attributing themselves for the growth:
At the moment, India is one of the hot spots for the global machine tool industry and all the players want their share of the pie.
The Machine Tool industry has been de-licensed by the government and foreign direct investment (FDI) up to 100 percent under automatic route as well as technology collaboration. The Department of Heavy Industry has reconstituted Development Councils for Machine Tools Industry for machinery/equipment manufacturers, users of machineries and policy maker from Government Departments to discuss the various issues and take decisions for the sustainable growth of the industries.
Almost 90 per cent of total production of metal cutting machines comes from cities like Bengaluru, Pune, Mumbai, Ahmedabad and Chennai. In contrast 90 per cent of total production of metal forming machines is from Baroda, Coimbatore, Batala, Jalandhar, Pune and Ludhiana.
EEPC India is among the biggest representative body for the Machine Tools sector in India. It represents from Large Medium and Small scale Manufacturers, from across the geographical clusters spread across India. Majority of the Machine Tools members are export oriented Small and Medium scale manufacturers, supplying Machine Tools, parts, components and accessories across the world.
EEPC India has over the years set up comprehensive framework to promote Machine Tools sector globally, which includes:
The Indian machine tool industry is growing at a steady pace and is estimated to grow in the coming times with the continuous focus and support from the Government programs. These developments will set India as one of the key machine tools market globally.