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The Importance of Agricultural Hand Tools Market in Indian Economy

The hand tools market in India is estimated to cross US$200million and is growing at an exponential rate of 12% every year.Low-cost labour and easy availability of raw materials are few reasons which make hand tools so popular in our country. There are more than 2500 manufacturers in India, out of which 95% are small-scale operators who cater to the demands for local markets.

Any tool which is powered by human force and does not require a power source can be termed as a hand tool. The hand tool category includes:

  • General purpose tools – wrenches, spanners, pipe cutters, hammers, etc.
  • Agricultural tools – shovel, axe, sickle, chisel, hoe, etc.
  • Garden tools –pruners, secateurs, shears, trowel, rake, etc.
  • Goldsmith tools
  • Automotive tools
  • Industrial tools

With the rapid acceleration of economic globalization, hand tool industry became the primary focus for all tool manufacturer across the world. The wide application causes increasing market demands, with continues to rise by over 10% every year.

Hand tool manufacturing is generally a profitable sector with good returns. The competition for hand tool products is determined by the quality of their raw materials, which in this case means the quality of steel. Manufacturing steel products may have to face the problems of surface quality and internal cracks. As consumers become more quality conscious, there is an increasing demand for high quality hand tools in the market.

Agricultural Hand Tools and Implements

The Indian agricultural and construction equipment market is expected to grow at a CAGR of 8.72% during the 2020–2027. Agricultural equipment refers to farmers hand tools, power tools, and even tractors.

The agriculture sector is highly significant for the Indian economy. Roughly 60% of our population are employed in agriculture and agro-based industries. Over the past three years, the sector has shown a mild recovery growth. The agricultural tools sector may be a key sector that contributes to agricultural growth and productivity.

India has made considerable progress in the field of agricultural implements over the past decades. From using farmers hand tools like spades, pick axes, crowbars and sickles, the sector has graduated to using modern agricultural implements such as combine harvesters, rice transplanters, power tillers, threshers, tractors, pumping sets, etc.

The Indian agricultural implements market was value US$ 8.5 Billion in 2017. The market value is further projected to gain US$ 12.8 Billion by 2023, exhibiting a CAGR of 7.03% in the course of 2018–2023.

The agricultural equipment industry in India has a diverse product portfolio catering to all activities across the value chain. The market can be categorized on the basis of product type.

  • Tractors, levellers, ploughs,dozers, and scrapers are used in the process of land development, tillage, and seed bed preparation.
  • Drill, seeder, planter, dibbler, and transplanter are used for the purpose of sowing and planting.
  • Shovel, harrow, tiller, sprayer, and duster are used for weeding, inter cultivation, and plant protection.
  • Harvester, thresher, digger, reaper, sheller, and sickle are used in harvesting and threshing jobs.
  • Seed extractor, dehusker, huller, cleaner, grader, mill, and dryer are utilized in post-harvest and agro processing.

Tractors, tractor-driven devices and tillers have largest market share among all the products in agricultural implements sector. In fact, the Indian tractor industry is the largest in the world and accounts for one-third of the global tractor production.

In the recent years, there has been a greater emphasis on the mechanization of agricultural processes. Farmers hand tools and other manual implements have been slowly replaced by the adoption of mechanization in an attempt to ensure greater return on investment and sustainability of agriculture.This has been primarily driven by the increased use of tractors, which is replacing manual and animal labour.

Industrial Hand Tools Market Overview

The global demand for power and hand tools is said to increase at a CAGR of 4.7% by 2025 to US$ 67 Billion.Expanding car repair and maintenance activities is viewed as one of the central forces driving interest for industrial hand tools.

The global market for mechanical hand tools is slated to show a moderate development through the estimated time frame of 2017-2026. On a global scale, the industry is expected to generate gross revenue of around US$ 14,000 Million by 2026-end.

In conclusion, we will say that the Indian hand tools industry is taking new leaps every day. This is an exciting time for all tool manufacturing brands in the country.

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Written by Della Moris

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