India's Fastener Market to Expand at a CAGR of 7.9% by 2030

According to a report by the consulting firm Strait, the industrial fastener market in India was valued at $9.064 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 7.9%, reaching $17.868 billion by 2030.

The industrial fastener market in India is one of the fastest-growing sectors within the manufacturing industry, driven by the country's rapid industrialization and infrastructure development. Notably, the automotive sector stands out as a primary consumer of industrial fasteners. The increase in automobile production, coupled with the transition to electric vehicles (EVs), is generating substantial demand for high-quality industrial fasteners. Furthermore, the Indian government's emphasis on infrastructure projects, including roads, bridges, airports, and public housing initiatives, is significantly propelling the growth of the fastener market.

In addition, numerous fastener manufacturers are focusing on the development of recyclable products with reduced carbon emissions, fostering a shift towards a more sustainable and environmentally friendly fastener market.

Key trends in the Indian fastener market include the adoption of multifunctional fasteners that enhance overall productivity by reducing assembly time, the emergence of fasteners utilizing advanced materials such as ceramics, alloys, and carbon fiber, improvements in corrosion resistance, lightweight designs aligning with the trend of vehicle electrification, and a rising demand for security fasteners.

In recent years, India has experienced a notable increase in fastener imports due to the growth of the manufacturing sector and the escalating demand for industrial products. The rising demand for high-quality and specialized fasteners is a significant factor driving the import growth.

The demand for specialty fasteners that meet international quality standards is increasing, particularly in industries such as automotive, aerospace, and electronics, which require fasteners with specific features like corrosion resistance, high tensile strength, and lightweight design.

In 2023, India’s fastener imports amounted to $488 million, reflecting a 14.4% increase from the previous year. China held the largest market share, followed by Japan, South Korea, Germany, and Thailand. Imports from South Korea were valued at $61.5 million in 2023, a 3.9% increase from the previous year, although the market share declined by 1.3 percentage points to 12.6%.

India's basic customs duty on fasteners is 25%, with a final duty rate of 58.57%. The Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry has been enforcing quality certification regulations through the "Quality Control Order 2023" for fasteners since January 20 of this year.

Recently, the influx of low-cost Chinese products has prompted India to implement stronger measures against Chinese imports. The Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce has initiated an anti-dumping investigation on fastener imports from China. The investigation is ongoing, and the imposition of anti-dumping duties has yet to be announced.

Although the final results are pending, India’s intensified scrutiny of Chinese imports is expected to create opportunities for South Korean fasteners to increase their market share in India.

The Indian fastener market is experiencing rapid growth, bolstered by the expansion of the manufacturing sector, infrastructure development, and increased automobile production. The demand for fasteners in India is projected to grow at an accelerated pace as the government focuses on initiatives like "Make in India" and increases investments in sectors such as automotive, construction, and electronics.

The Secretary General of the Fasteners Association of India (FAI) stated, "The Indian fastener market presents promising opportunities for the South Korean fastener industry to expand its market presence. Leveraging South Korea’s reputation for quality and technical expertise, Korean fastener manufacturers can forge strong partnerships with Indian companies and capitalize on the demand for fasteners in India’s booming industrial sectors."