India has emerged as the fastest growing major economy in the world and is expected to be one of the top three economic powers of the world over the next 10-15 years, backed by its strong democracy and partnerships. Indian Economy is expected to grow 7.1% in 2019-20 and gross domestic product (GDP) is expected to reach US$ 6 trillion by Fy2027.

India is an attractive hub for foreign investments in the manufacturing sector. India's Foreign Direct Investment (FDI) equity inflows reached US$ 409.15 billion between April 2000 and December 2018. Several companies have set up or are looking to establish their manufacturing bases in the country.

The manufacturing sector of India has the potential to reach US$ 1 trillion by 2025 and India is expected to rank amongst the top three growth economies and manufacturing destination of the world by the year 2020. The implementation of the Goods and Services Tax (GST) will make India a common market with a GDP of US$ 2.5 trillion along with a population of 1.32 billion people, which will be a big draw for investors.

Machine tool sector is a basic capital good industry. It is a sub-sector of the engineering industry included under the category heavy engineering units. Machine tool segment produces mother machines therefore plays a vital role in the technological upgradation, quality control and cost in the engineering & manufacturing sector.

The Indian machine tool industry is expected to grow at a CAGR of 12.6% by 2020 and is expected to reach USD 2,588 million. As per the Gardner Business Media survey 2017, India stands 12th in production and 8th in consumption of machine tools in world. With emphasis on Make in India and manufacturing, India is set become a key player in the global machine tools industry and is expected to see significant growth in high-end machine tool manufacturing. 

There are currently about 1000 units in production of machine tools, accessories/attachments, subsystems and parts. Of these, around 25 in the large scale sector accounts for 70% of the turnover and the rest are in the MSME sector of the industry. The large organised players caters to India's heavy and medium industries whereas the small scale sector meets the demand of ancillary and other units.

Production trends in Indian machine tool industry. 

Metal forming machines consist of bending folding machines, straightening, flattening machines including press breaks, punching and/or shearing machines, presses, die-casting etc. Metal cutting machine tools accounts for 87 percent of thtotal machine tool production of which 66 percent is CNC machines. Indian machine tool is thus dominated by the metal cutting CNC segment. 

• Machine tools production has reached US$ 1042 Million in FY 2017-18 from US$ 829 Million in FY 2016-17 at a Y-O-Y growth of 25.7%
• Machine tools imports to India has reached US$ 882 Million during 2016-17 compared to US$ 850 Million during 2015-16 registering a growth of 4%
• Metal working machine consumption in India has reached US$ 1660 Million during 2016-17 compared to US$ 1534 Million during 2015-16 registering a Y-O-Y growth of 12%
• Metal cutting machine consumption in India has reached US$ 1309 Million during 2016-17 compared to US$ 1165 Million during 2015-16
• Metal forming machine consumption in India has reached US$ 350 Million during 2016-17 compared to US$ 316 Million during 2015-16 registering a Y-O-Y growth of 10%.

The Indian machine tools sector offers several opportunities for investment. Given the current gap between demand and supply, there is a clear need for adding capacities in this sector. The industry is moving towards increasingly sophisticated CNC machines, driven by demand from key user segments, such as automobiles and consumer durables, aerospace, etc. Machine tool manufacturers need to develop capabilities to cater to this demand and investments in this area could yield long term benefits.

“Make in India” initiative introduced by the Government of India has identified automobiles, auto-components, biotechnology, defence, railways and textiles for development. Machine tool industry will be the key enabler in this journey as automobiles, auto-components, defence and railways have been the main users of machine tools. It gives great opportunity for the sector to grow at 20-25 percent annually to increase its market share. Consumption demand is expected to grow at 15.0 percent, and the domestic production meets less than 50.0 percent of the domestic demand. industries whereas the small scale sector meets the demand of ancillary and other units.

Why Amtex?

•  Engage with leaders and decision makers from across the sector
• Generate quality business leads
• 60% of the machine tool and tooling industry is based in North & Central India
• 80% attendees in AMTEX are from Northern & Central part of India (Punjab, Haryana, Uttarkhand, Madhya Pradesh& Uttar Pradesh)
• Pavilion focusing on tooling industry by Messe Wien (Austria) at the co-located event Intertool Delhi. Co-located Automation & Robotics show
• Industrial roadshows to promote key participants and making their presence felt
• Strategic alliances with industrial trade bodies based in northern part of the country (Punjab, Haryana, Uttarkhand, Madhya Pradesh& Uttar Pradesh etc)
• International exhibitors to get highlighted promotions in monthly e-newsletters sent out on AMTEX and Automation & Robotics Expo database