India Machine Tools Market Research Report and Industry Forecast

India Machine Tools Market Summary:

The India machine tools market size reached USD 1.7 Billion in 2024. The market is projected to reach USD 3.4 Billion by 2033, exhibiting a growth rate (CAGR) of 7.8% during 2025-2033. The market growth is attributed to rapid industrialization, rising demand from sectors such as automotive, aerospace, and defense, increased automation and robotics adoption, the expansion of manufacturing capabilities, demand for precision engineering, and growing focus on infrastructure development.

Market Insights:

• Based on region, the market is divided into North India, West and Central India, South India, and East India. 
• On the basis of tool type, the market is categorized as metal cutting, metal forming, and accessories.
• Based on the technology type, the market is divided into conventional and CNC (computerized numerical control).
• On the basis of end use industry, the market is divided into automotive, aerospace and defense, electrical and electronics, consumer goods, precision engineering, and others.

Market Size and Forecast:

• 2024 Market Size: USD 1.7 Billion
• 2033 Projected Market Size: USD 3.4 Billion
• CAGR (2025-2033): 7.8%

Machine tools are utilized to perform a wide range of operations, such as cutting, forming, drilling, grinding and abrading. These tools enhance product uniformity and reduce the manual efforts required. At present, various machine tools are available in the Indian market, ranging from small workbench mounted instruments to large devices that are employed in the automotive, aerospace and electronics industries.

Rising industrial automation to increase the overall productivity and improve the ergonomics represents one of the significant factors stimulating the market growth in India. Apart from this, an increase in the number of small and medium-sized enterprises (SMEs), along with stringent evaluation criteria on product quality, is bolstering the India machine tools market growth. Furthermore, due to lower labor and raw materials costs and reduced tax rates, several foreign companies are setting up their manufacturing bases in India. This is further providing growth opportunities to these manufacturers to expand their consumer base in the country. Moreover, the escalating energy demand is leading to the exploration of new oil and gas fields in India, which is expected to create a positive influence on market growth.

India Machine Tools Market Trends:

Implementation of Government Initiatives

The government plays a significant role in shaping the growth trajectory of the domestic machine tools market through targeted policy interventions and financial incentives. Initiatives such as the Production Linked Incentive (PLI) scheme, the National Capital Goods Policy, and the Make in India campaign have collectively stimulated manufacturing sector growth. The manufacturing sector contributes approximately 17% to the country’s GDP and provides employment to over 27.3 Million people, underscoring its critical role in the national economy. The government has introduced a range of policies and programs aimed at increasing the sector's share to 25% of the country's economic output by 2025. The growth of the manufacturing sector positively impacts the machine tools production. Moreover, the government provides support in the form of budget support, tax policies, import substitution strategies, and industrial corridors and manufacturing cluster facilities. Aside from this, the increasing focus on the development of MSMEs and enhancing their technology strengths has further driven demand for local machine tools, decreasing dependency on imports and increasing India's competitiveness in international supply chains.

Growth in CNC and Hybrid Smart Tools

The rapid adoption of computer numerical control (CNC) and hybrid smart tools are significantly augmenting the India machine tools market share. The technologies are facilitating precision machining, improved operational effectiveness, and cost minimization in industries like automotive, aerospace, electronics, and general engineering. Indian manufacturers are increasingly incorporating CNC systems with robotics, additive manufacturing, and high-end materials processing to deliver hybrid tools that address multifaceted production requirements. Apart from this, the growing need for low-batch, custom production solutions in high-precision industries has further propelled this shift. In addition, local industry players are also investing in indigenously made CNC control systems to mitigate import dependence. Further, collaborative and academic initiatives are inducing innovation in smart tool development, while government-sponsored programs are offering funding incentives for technology upgradation. This results in a technologically advanced machine tools industry, enabling India's changing manufacturing aspirations.

Digital Transformation, Smart Manufacturing, and Industry 4.0 Adoption

The market is undergoing a paradigm shift with the integration of automation, artificial intelligence (AI), industrial IoT (IIoT), and smart manufacturing principles under the broader umbrella of Industry 4.0. The digital transformation is changing production landscapes by facilitating predictive maintenance, real-time process monitoring, and data-driven decision-making. Firms are implementing connected machines, sensors, and cloud platforms to enhance output quality, reduce downtime, and increase the use of resources. The move towards digitalization is also supported by policy initiatives like the Make in India and Digital India programs, which provide an impetus for the acceptance of smart technologies in the manufacturing sectors. Government-and-industry-sponsored training programs and digital innovation centers are facilitating the shift by MSMEs and other manufacturers to Industry 4.0. The convergence of advanced digital tools with conventional manufacturing disciplines is developing a future-proof machine tools industry capable of competing globally in productivity and efficiency.

Challenges and Opportunities in the Market

The market faces several structural challenges that hinder its full potential. One of the major issues is the lack of skilled manpower, especially to operate sophisticated CNC machines and handle computer-integrated systems. This shortage of talent delays technology uptake and influences productivity, particularly for small and medium-sized businesses. Moreover, the market faces raw material price fluctuations, particularly for steel, alloys, and precision parts, which causes cost planning and margins to be disturbed for manufacturers. The sector is also afflicted with a splintered supply chain, in which logistical inefficiencies and restricted domestic availability of key components frequently result in long lead times and dependence on imports. Despite these challenges, as per the India machine tools market analysis, the market offers huge opportunities. Increased demand for local manufacturing, assistance from the government through initiatives such as PLI and Make in India, and enhanced investment in research and development (R&D) and automation provide huge growth opportunities. The shift towards Industry 4.0, coupled with export opportunities and infrastructure growth, makes India the focal point of the world machine tools industry.

India Machine Tools Industry Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the India machine tools market report, along with forecasts at the country and regional level from 2025-2033. Our report has categorized the market based on tool type, technology type and end use industry.

Breakup by Tool Type:

• Metal Cutting
• Metal Forming
• Accessories

Metal cutting tools play a vital role in the market, catering to sectors such as the automotive, aerospace, and manufacturing sectors. The tools are needed to form, size, and finish metal components, which makes them an integral part of mass manufacturing. As India develops into an international manufacturing base, demand for high-precision, long-lasting cutting tools has grown considerably. The market has also seen development, such as high-tech metal cutting tools that enhance tool life as well as cutting efficiency. Additionally, increased emphasis on automation and intelligent factories has further increased the use of high-tech metal cutting tools.

Metal forming is utilized especially in the auto and heavy machinery industries. These tools are used to mold metal into shapes of their choice using processes such as stamping, forging, and extrusion. Growth in India's manufacturing sector and more investment in infrastructure and production facilities have fueled the demand for metal forming machines. With respect to high precision and efficiency, these tools play an important role in manufacturing intricate parts with low wastage. With industries demanding faster production rates, the demand for automated and sophisticated metal forming tools is on the increase.

Accessories form a critical segment in the market. They consist of components such as tool holders, work holding devices, and measuring instruments, which aid the operation of primary machine tools such as cutters and forming machines. These accessories improve the efficiency, accuracy, and safety of machines, leading to productivity. The increasing need for specialized, high-quality parts in India's manufacturing industry is driving the growth of the accessories market. With Indian industries focusing more on automation, digitalization, and smart manufacturing, accessories that are compatibility with these technologies are becoming more advanced, thereby expanding the market share.

Breakup by Technology Type:

• Conventional
• CNC (Computerized Numerical Control)

Conventional machine tools are of great value in the industry, especially among small and medium-sized enterprises (SMEs) and traditional industries. The tools, which need to be driven manually to shape, drill, and turn metal, are affordable and easy to maintain. Even with the increasing automation wave, traditional machines remain popular for prototyping, repairs, and low-volume production. Their ease of use makes them perfect for sectors that demand flexibility and accuracy without intricate programming, making them a vital component of India's varied manufacturing sector, particularly in smaller, specialty operations.

The machine tools market in India is revolutionized by CNC machines, which provide high accuracy, automation, and the capacity to undertake complex manufacturing operations with minimum human intervention. These cutting-edge machines, driven by computer programming, serve industries like the automotive, aerospace, and electronics sectors, where accuracy and consistency are paramount. With the country speeding up its transition toward smart manufacturing, CNC machines take center stage in increasing productivity, minimizing human errors, and maximizing efficiency. The increasing need for high-quality, personalized products, alongside industry 4.0 implementation, is still pushing the universal application of CNC technology in India's manufacturing industries.

Breakup by End Use Industry:

• Automotive
• Aerospace and Defense
• Electrical and Electronics
• Consumer Goods
• Precision Engineering
• Others

The automotive sector is one of the main contributors to the growth of the market. As India has become a global automobile manufacturing hub, there is an increased India machine tools market demand. The automotive parts, like engines, chassis, and transmission systems, need these machine tools. With the industry demanding larger production volumes and better-quality standards, there is a growing need for advanced machine tools with high precision, efficiency, and automation. The sudden growth in electric vehicle (EV) production further raises the demand for specialized machine tools in India's automotive industry.

Aerospace and defense are important end users contributing to the expansion of the market due to the increasing emphasis on self-reliance and defense upgrades in the country. Machine tools in the aerospace and defense industries are employed in the manufacturing of precision components, including aircraft components, propulsion systems, and defense systems. As India accelerates efforts to develop indigenous defense capabilities and raises investments in the aerospace sector, the requirement for advanced, precision-engineered machine tools increases. More advanced CNC and automated solutions are becoming increasingly popular in this arena, backing up the nation's drive to enhance manufacturing capabilities for both civilian and military aerospace industries.

The electrical and electronics sector contributes heavily to the demand in Indian machine tools industry, particularly with the growth of the country's manufacturing of smartphones, appliances, and electrical components such as circuit boards and semiconductors. Machine tools are used to provide precision in the manufacturing of complex parts with small tolerances, which play a crucial role in the functionality of electrical products. As India emerges as a significant player in the global supply chain for electronics, there is a growing need for high-accuracy machines that enable mass production and service innovation in smart devices, renewable energy solutions, and beyond.

Breakup by Region:

• North India
• West and Central India
• South India
• East India

North India is a major contributor to the market, driven by its strong manufacturing base in sectors like automotive, metalworking, and engineering. Large industrial clusters in Haryana, Punjab, Uttar Pradesh, and Delhi are heavy contributors to machine tool demand. The region's proximity to the major manufacturing hubs and the emerging automotive industry, with its expansion into electric vehicle manufacturing, adds to the demand for higher-end machine tools. Also, growing infrastructure and industrialization in North India reinforce the ongoing development of the market for machine tools, creating an environment for innovation and demand for high-precision, high-quality equipment.

West and Central India have the presence of important manufacturing hubs, especially automotive, heavy engineering, and electronics. States such as Maharashtra, Gujarat, and Madhya Pradesh have a strong contribution to the machine tool industry, with their respective cities of Pune, Mumbai, and Indore being the places of many manufacturing facilities as well as automotive giants. Industrial automation is witnessing growth in the region, which in turn stimulates the demand for CNC machines and precision tools. Besides, Gujarat's contribution to the production of renewable energy and Maharashtra's initiative for aerospace growth fortify this region's market for high-efficiency, advanced machine tools.

South India is a prominent contributor to the machine tools industry in India, propelled mainly by the growing automotive manufacturing, electronics, and aerospace sectors. States of Tamil Nadu, Karnataka, and Telangana are home to major automotive makers, along with a robust electronics sector. The demand for machine tools in South India is also complemented by the region's emphasis on smart manufacturing and industrial automation. Also, the emergence of several industrial parks and growing foreign direct investment (FDI) in industries such as aerospace and defense increases the demand for sophisticated, precision-based machine tools in the region.

The market in East India is progressively emerging as a significant center for the machine tool market. States such as West Bengal, Odisha, and Bihar are witnessing more investment in steel, iron, and heavy machinery sectors, fueling the demand for metal forming tools and metal working. Infrastructure development and setting up manufacturing parks in urban areas such as Kolkata and Bhubaneswar also add to the market. Furthermore, the increasing focus on industrial modernization in East India is driving the uptake of cutting-edge CNC and automation technologies, creating fresh opportunities for machine tool suppliers in the region.

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Latest News and Developments:

• On June 9, 2025, Brother Machine Tools India inaugurated a state‑of‑the‑art Technology Center in Pune, marking its third such facility in India and its first in western India. The 650 m² centre features a 190 m² showroom equipped with live demonstrations, technical support services, training spaces, and displays of its latest SPEEDIO CNC machining solutions, including the locally produced S700Bd1. Positioned strategically within Pune’s industrial belt, the centre underscores Brother’s drive to strengthen its after‑sales and marketing reach and support growth in the automotive and precision engineering sectors.
• On February 18, 2025, LMW Limited, a pioneer in India’s CNC industry, unveiled a new lineup of advanced CNC machines at IMTEX 2025, underlining its commitment to innovation and precision manufacturing. The showcased portfolio included high‑performance turning centres, vertical and horizontal machining centres, multi‑axis turnmill solutions, and integrated automation and IoT‑enabled systems designed to elevate productivity and efficiency. This strategic presentation reinforces LMW’s leadership in the machining market and its focus on delivering next‑generation, industry‑ready solutions.
• On September 19, 2024, Brother Industries’ subsidiary, Brother Machinery India Pvt. Ltd., completed construction of a new 7,300 m² machine tool factory in the Japanese Industrial Township near Bengaluru, marking its third global production facility alongside Japan and China. Scheduled to commence operations in December 2024, the facility will initially manufacture standard models S500Bd1 and S700Bd1, supporting domestic demand in the automotive, motorcycle, and medical sectors. As part of its sustainability efforts, the factory includes rooftop solar panels, reinforcing Brother’s commitment to industrial growth and environmental responsibility.
• On July 26, 2024, Phillips Machine Tools India unveiled the PCM 220, a compact, high-precision Vertical Machining Center entirely designed and manufactured in Pune. Tailored for MSMEs and SMEs, the machine features up to 40,000 rpm spindle speed, 4th/5th axis capability, 8-tool ISO 20 changer, and Fanuc/Mitsubishi controls, catering to industries such as aerospace, medical, automotive, and jewelry. The PCM 220’s space-saving footprint, ease of relocation, and strong after‑sales support across India and key international markets underscore Phillips’ strategic push to empower small-part machining locally.

Report Coverage: