The Indian Economy is an Agricultural economy. Agriculture accounted for 23% of GDP, and employed 59% of the country's total workforce in 2016. Services sector is the backbone of the Indian economy and contributing around 53% of the GDP, employs around 19% of the work force. Manufacturing & Industry accounts for 26% of GDP and employs 22% of the total workforce.
The dis-proportionality is clearly visible, agriculture employs the most number of people and produces the least output. Thus for the country to attain higher levels of productivity it is necessary to grow the services and manufacturing industries at the same time modernise agriculture so as to reduce the manpower employed in it.
With the growth of the manufacturing sector in India taking place, it is important to speak of the Indian Machine Tools Industry, which serves as the backbone of manufacturing industry.
The Indian machine tool industry is globally ranked 12th in production and 8th in consumption as per the latest Gardner Research Survey 2017. The current market size of machine tools in India for 2016–17 is estimated to be around Rs 11,600 crore (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 2016–17.
Machine tool exports from India reached about Rs 360 crore (55.3 million dollars) during FY17. Indian machines are price competitive in their range making them suitable for exports. Indian companies have grown rapidly over the last decade and have marked their presence across all the broad product categories of machine tools. Many of them are also exporting to countries such as Germany, Turkey, China, Middle East, Russia, South Korea, etc.
The Indian machine tools industry, though highly fragmented, is projected to grow at 5.5 per cent annually through 2019, driven particularly by expanding demand in China and other developing countries.
With presence of several small, medium and large suppliers, including international and regional players, the companies engaged in machine tools manufacture compete in product differentiation, service portfolio and pricing.
Core trends
“Process automation, additive manufacturing and the rise of electric vehicles are the three core trends that are changing the dimensions of the machine tool industry,” notes Cyril Pereira, Managing Director, Reed Triune Exhibitions Pvt Ltd.
Stating that the industry is growing at an exponential rate, the manufacturers will need to develop capabilities to cater to the demand and investments in this area could yield long-term benefits.
He said that the industry has advanced significantly in hardware and software applications. The future includes automation of processes into manufacturing and engineering sectors. Reduced manual intervention in process control using machine tool control system and smart tooling would be the key to optimise cost, reduce scrap and improved machine utilisation.
The industry faces stiff competition from China, Germany and the US.
The dis-proportionality is clearly visible, agriculture employs the most number of people and produces the least output. Thus for the country to attain higher levels of productivity it is necessary to grow the services and manufacturing industries at the same time modernise agriculture so as to reduce the manpower employed in it.
With the growth of the manufacturing sector in India taking place, it is important to speak of the Indian Machine Tools Industry, which serves as the backbone of manufacturing industry.
The Indian machine tool industry is globally ranked 12th in production and 8th in consumption as per the latest Gardner Research Survey 2017. The current market size of machine tools in India for 2016–17 is estimated to be around Rs 11,600 crore (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 2016–17.
Machine tool exports from India reached about Rs 360 crore (55.3 million dollars) during FY17. Indian machines are price competitive in their range making them suitable for exports. Indian companies have grown rapidly over the last decade and have marked their presence across all the broad product categories of machine tools. Many of them are also exporting to countries such as Germany, Turkey, China, Middle East, Russia, South Korea, etc.
The Indian machine tools industry, though highly fragmented, is projected to grow at 5.5 per cent annually through 2019, driven particularly by expanding demand in China and other developing countries.
With presence of several small, medium and large suppliers, including international and regional players, the companies engaged in machine tools manufacture compete in product differentiation, service portfolio and pricing.
Core trends
“Process automation, additive manufacturing and the rise of electric vehicles are the three core trends that are changing the dimensions of the machine tool industry,” notes Cyril Pereira, Managing Director, Reed Triune Exhibitions Pvt Ltd.
Stating that the industry is growing at an exponential rate, the manufacturers will need to develop capabilities to cater to the demand and investments in this area could yield long-term benefits.
He said that the industry has advanced significantly in hardware and software applications. The future includes automation of processes into manufacturing and engineering sectors. Reduced manual intervention in process control using machine tool control system and smart tooling would be the key to optimise cost, reduce scrap and improved machine utilisation.
The industry faces stiff competition from China, Germany and the US.
