Press Release

India Machine Tools Market is Expected to Register a 6.69% CAGR Through 2031

Rapid Industrialization & Infrastructure Development and Growth of the Automotive & Auto Component Industry are likely to propel the market during the forecast period.


According to TechSci Research report, “India Machine Tools Market – By Region, Competition, Forecast and Opportunities, 2021-2031F”, India Machine Tools Market was valued at USD 1.92 Billion in 2025 and is expected to reach USD 2.86 Billion by 2031 with a CAGR of 6.69% during the forecast period.

Government initiatives and policy frameworks play a crucial role in shaping the trajectory of the Indian machine tools market. With the manufacturing sector being a key focus area, multiple programs have been launched to encourage investment, technological upgradation, and global competitiveness. These policies directly and indirectly influence the growth of the machine tools industry.

The "Make in India" campaign, for instance, aims to increase manufacturing’s share in the GDP, fostering demand for advanced production tools and machinery. Similarly, the Production Linked Incentive (PLI) schemes for sectors like automotive, electronics, and defense encourage local manufacturing, which requires robust machine tooling capabilities.

The National Capital Goods Policy is another significant initiative that emphasizes self-reliance in the machine tools and heavy equipment sectors. It promotes R&D, infrastructure development, and skill enhancement, all of which are vital for the sustained growth of the machine tools ecosystem.

Moreover, programs like the Atmanirbhar Bharat Abhiyan and Startup India offer financial and regulatory support for domestic entrepreneurs and MSMEs, enabling them to invest in modern machine tools for competitive production. These schemes often include subsidies, tax rebates, and low-interest loans, making it easier for companies to upgrade their capabilities.

The government has also focused on creating industrial corridors and Special Economic Zones (SEZs), which attract foreign investment and serve as hubs for high-volume, high-tech manufacturing. The resulting demand for precise and efficient machine tools from these facilities boosts the domestic market further.

Trade agreements and import-export policies also influence the availability and pricing of machine tools. Efforts to reduce import dependency and encourage indigenous development have led to increased domestic production of machine tools, sometimes with collaborative support from global partners.


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Based on End User, The automotive sector dominated the Indian machine tools market due to its significant contribution to the country’s manufacturing landscape and its high demand for precision-engineered components. As one of the largest and fastest-growing industries in India, the automotive sector requires extensive machining processes to produce a wide range of parts, including engine blocks, transmission systems, chassis components, and various precision fittings. These parts demand high accuracy, consistency, and quality, which can only be achieved through advanced machine tools such as CNC turning centers, milling machines, and grinding machines.

India is among the world’s top producers of vehicles, including passenger cars, commercial vehicles, two-wheelers, and three-wheelers, which fuels a continuous need for machine tools to meet production volumes. Additionally, the country has become a preferred hub for automotive component manufacturing, supplying both domestic original equipment manufacturers (OEMs) and global export markets. This has led to increased investments in modern machining technologies to ensure adherence to international quality standards.

The transition towards electric vehicles (EVs) further propels demand for specialized machine tools. EV components, such as battery casings, electric motors, and lightweight structures, require precision machining with tighter tolerances and advanced materials like aluminum and composites. Indian manufacturers are thus upgrading their machine tool capabilities to cater to this emerging segment.

Government initiatives like the “Make in India” campaign and Production Linked Incentive (PLI) schemes specifically targeting the automotive sector have stimulated growth by encouraging domestic manufacturing and technology adoption. Moreover, stringent regulatory requirements regarding emissions and safety have pushed manufacturers to improve the quality and complexity of components, necessitating advanced machine tooling.

Based on Region, North India is emerging as the fastest-growing region in the Indian machine tools market due to a combination of strategic industrial development, infrastructure expansion, and favorable government policies. The region hosts several industrial hubs and manufacturing clusters, particularly in states like Haryana, Punjab, Uttar Pradesh, and Delhi NCR, which have witnessed substantial growth in sectors such as automotive, electronics, defense, and capital goods. These industries heavily rely on precision machining, driving strong demand for advanced machine tools.

One key factor behind North India’s rapid growth is the development of well-established industrial corridors and Special Economic Zones (SEZs), which offer robust infrastructure, streamlined logistics, and attractive incentives for manufacturers. Initiatives like the Delhi-Mumbai Industrial Corridor (DMIC) pass through parts of North India, further stimulating industrial investments and enhancing supply chain efficiencies.

The region also benefits from proximity to major automotive and auto component manufacturing centers, which are among the largest consumers of machine tools. As these industries expand, their need for automated, CNC-controlled metal cutting and forming machines increases significantly. Additionally, North India’s emerging aerospace and defense manufacturing capabilities contribute to the rising demand for high-precision machining equipment.

Government policies aimed at promoting “Make in India” and self-reliance in manufacturing have been aggressively implemented in North India, with dedicated efforts to attract foreign direct investment (FDI) and encourage technology upgrades in the manufacturing sector. This has led to the establishment of new plants and modernization of existing ones, creating a thriving environment for machine tool suppliers. Moreover, the availability of skilled labor, growing technical institutions, and increasing industrial training programs in the region support the operational and technological needs of machine tool users. The confluence of infrastructure, industry growth, policy support, and workforce readiness makes North India a dynamic and fast-expanding market for machine tools, positioning it as a key driver of the overall growth of the Indian machine tools industry.


Major companies operating in the India Machine Tools Market are:

  • DMG Mori Co., Ltd.
  • Makino Milling Machine Co., Ltd.
  • Haas Automation, Inc.
  • Okuma Corporation
  • Mazak Corporation (Yamazaki Mazak Corporation)
  • Hurco Companies, Inc.
  • Doosan Machine Tools Co., Ltd.
  • JTEKT Corporation (Koyo Seiko Co., Ltd.

 

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The Indian machine tools market presents a significant growth opportunity driven by rapid industrialization, rising demand for precision engineering, and government-led initiatives such as “Make in India” and the Production Linked Incentive (PLI) scheme. With expanding sectors like automotive, aerospace, defense, and electronics, the need for advanced and automated machining solutions is increasing. Additionally, the growth of MSMEs and the push for localized manufacturing create strong demand for cost-effective, customizable machine tools. As India aspires to become a global manufacturing hub, the machine tools industry stands poised for robust expansion, attracting both domestic and international investment opportunities.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm. 

India Machine Tools Market, By Tools Type (Metal Cutting Machines, Metal Forming Machines) By Technology (CNC Machines, Conventional Machines) By Application (General Purpose Machines, Special Purpose Machines) By End User (Automotive, Electrical & Electronics, Railways, Consumer Durables, Government & Defense, Others) By Region, Competition, Forecast & Opportunities, 2021-2031F”, has evaluated the future growth potential of India Machine Tools Market and provides statistics & information on Market size, structure and future Market growth. The report intends to provide cutting-edge Market intelligence and help decision-makers make sound investment decisions., The report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the India Machine Tools Market.

 

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