Machine tools industry in India to scale to $ 3-4 bn by 2020

By admin March 11, 2015 11:50 am IST

With customer requirements becoming more stringent, the machine tool industry needs to evolve to meet the customer expectations
 Over the next 5 years, the entire Indian automotive industry across vehicle and component segments is expected to witness robust growth. “The growth in the automotive sector will propel the machine tool consumption in India to grow from $ 1.3 billion in FY14 to $ 3 billion by FY20 at 14 per cent CAGR,” noted a joint study recently conducted by ACMA, IMTMA and Roland Berger Strategy Consultants.
The study titled ‘Enabling Indian auto component industry competitiveness: role of Indian machine tool industry’ was conceptualised identifying the roadblocks faced by machine tool industry and suggest a way forward for the segment. It undertook a detailed survey with sixty ACMA-members (across tier one to three) and more than twenty IMTMA-members.
The growth rate for Indian machine tool suppliers can potentially be higher as import substitution is high on agenda of the automotive industry due to the adverse impact of fluctuation in exchange rates, the findings of the study said.