The Indian machine tool industry is gearing up for a significant expansion in the coming decade, with major infrastructure projects acting as the primary catalyst. Industry leaders project robust growth, driven by the government's push for advanced mobility solutions and rising demand from key sectors.
Rail and Mobility Projects Fuel Demand
Speaking at a recent media briefing, the Indian Machine Tool Manufacturers' Association (IMTMA) revealed that the sector is expected to grow by approximately 11% by the year 2031. This growth is not limited to traditional areas but is being supercharged by large-scale national projects.
CP Rangachar, former IMTMA president and managing director of Yuken India Limited, identified railway development as a major growth driver. He explained that critical machine parts are essential for manufacturing engines, bogies, and other components, with extensive metal-cutting processes involved. "At present, there is only one bullet train project, but more will come and that is how we will grow," Rangachar stated. He also highlighted that future mobility ventures, including inland and coastal shipping, will contribute to the rising demand.
Economic Growth and Sectoral Expansion
The optimistic forecast is closely tied to India's broader economic trajectory. IMTMA CEO Jibak Dasgupta linked the projections directly to GDP growth, noting that machine tool demand typically outpaces general economic expansion. The association is factoring in an increase in manufacturing's share of GDP, aiming to rise from 17% to 20% by 2031.
Beyond railways, the electrical and defence sectors are also expected to generate substantial requirements for precision machine tools, diversifying the industry's growth base.
Karnataka's Dominant Role and Financial Projections
The state of Karnataka, with its capital Bengaluru and surrounding industrial suburbs, plays a pivotal role in this ecosystem. The region contributes to more than half of the machine tools manufactured in the entire country, solidifying its status as the nation's hub for this critical industry.
Reflecting the anticipated boom, IMTMA has released compelling financial estimates. Machine tool consumption in India is projected to skyrocket from Rs 31,781 crore in the current financial year to a staggering Rs 59,444 crore by 2031. This near-doubling of market size underscores the transformative phase the industry is about to enter, positioning it as a key beneficiary of India's infrastructure modernization and manufacturing renaissance.
