Netscribes' latest market research report titled Machine Tools Market in India 2021 describes the dynamics of machine tools supply and demand in this country. In 2013, domestic production accounted for only one-third of the overall domestic consumption of machine tools in India. Demand is expected to grow steadily over the next few years and Indian players wish to increase market share of domestic production considerably during the same time period. With respect to import and export of machine tools, India plays a prominent role with some of its key partner nations being China, Japan and Germany.
Within the machine tools industry, there are around 1000 units involved in the production of machine tools, accessories and subsystems. Out of these, the very large companies are responsible for more than half the industry turnover and the rest can be attributed to SMEs. Thus, while the demand-supply gap in the industry creates an opportunity for new entrants, the need for continuous technology upgradation and rise in production costs together pose a challenge for the smaller players. However, there are government initiatives in this regard to support the SMEs, schemes such as Credit Linked Capital Subsidy Scheme for Technology Upgradation and National Manufacturing Competitiveness Programme. The major players have increasingly moved towards sophisticated machines, but they need to continue investing in R&D and technology transfer partnerships with other nations to remain competitive in this dynamic industry.