The development prospects of Indian machine tool industry in the next 10 years are considerable

The financial crisis from 2008 to 2009 caused the Indian machine tool industry to suffer from cancellation of orders, delays in delivery, and financial constraints. However, after the financial crisis, the industry once again exhibited explosive growth. According to forecasts, the output value of the Indian machine tool industry will increase from Rs. 14.25 billion in the fiscal year 2008-2009 to Rs. 31 billion in the 2010-2011 fiscal year. Due to the economic recovery and the prosperity of the automotive and parts industries, the volume of orders has increased significantly. In two years, the growth rate of the Indian machine tool output reached 117.5%.

According to the Indian Machine Tool Manufacturers Association (IMTMA), the turnover of the Indian machine tool industry for the 2011-2012 fiscal year will reach Rs. 38.7 billion, an increase of 24.8% over the current fiscal year. The good growth momentum has enabled IMTMA to set a target of 25% CAGR for the industry in the next 10 years. By 2020, the size of the industry will reach Rs. 230 billion.

Despite this, the industry still faces some challenges. First, it needs to increase the scale of production capacity to meet the market demand, and at the same time expand the industrial base to provide infrastructure for the aerospace, defense, power and automobile manufacturing industries. Capital is another big challenge: Most banks are not prepared for financing, and competition from free trade agreements and WTO negotiations may affect the industry.

Local machine tool companies in India have realized that their equipment cannot meet the surge in market demand. This means that about 70% of machine tool equipment needs to rely on imports from Germany and China, and this trend could be further strengthened if the industry does not take measures. As India's GDP keeps growing at nearly 9%, the demand for machine tools, including automotive manufacturing, engineering, energy, railways, and defense, is expected to grow exponentially. According to IMTM, the industry's growth rate will reach 50% to 100% in the next few years.

Shailesh Sheth, former chairman of IMTMA, pointed out: “In order to achieve the CAGR growth target of 25%, the Indian machine tool industry needs to invest 40 billion rupees in the next 10 years to strengthen technology research and development to enhance the competitiveness of the industry.” IMTMA proposes the purpose of the 10-year development plan It is to develop Indian machine tool technology, increase production, reduce dependence on imports, provide continuous manufacturing competitiveness and enhance national security. IMTMA's goal is to increase the localization rate of India's machine tools to 50% within five years and to 67% by 2020.