India stands 13th in production and 10th in consumption of machine tools in the world with a 0.9 percent share in global production. The market is expected to reach USD 3 Billion by 2019-20, growing at a CAGR of nearly 14 percent from 2013-14 to 2019-20. The figures below give an idea regarding the structure and size of the machine tool industry.
In the last 10 years, western countries have evolved new technologies to counter the impact of economic disruptions and sustain their manufacturing activities even in the face of competition from low-cost manufacturing countries such as those of BRICâ€™s. This trend is recognized as the Fourth Industrial Revolution which focuses on integrating ICT, Digital Manufacturing and Automation-based technologies to enhance production and cost efficiency of factories.
The Indian manufacturing sector is estimated to have a US$180-billion investment opportunity over the next five years, according to the Investment Commission of India. The areas of manufacturing that will be impacted by the Fourth Industrial Revolution are the â€˜Factory Shop Floorâ€™ and â€˜Metal Working Industryâ€™. These are the two areas which will ensure the success of all the major manufacturing sectors envisaged under the â€˜Make in Indiaâ€™ programme. The backbone of Indiaâ€™s engineering industry rests upon its large number of MSMEs who are capable and strongly positioned in manufacturing customized advanced products. The need of the hour is to enhance the capabilities of Indiaâ€™s manufacturing in the Shop Floor and Metal Working Industry and render them with the technological capabilities to face the Fourth Industrial Revolution.