According to www.indiatoday.in, India has launched a $1.2 billion incentive scheme to boost domestic manufacturing of high-value construction and infrastructure equipment, aiming to reduce reliance on Chinese imports.
Targeted Equipment and Investment Goals
The scheme, soon to be finalized, offers incentives to domestic manufacturers over 7 years and aims to attract around $1.8 billion in fresh investment. It specifically covers tunnel boring machines (TBMs), fire-fighting systems, and elevators for high-rise buildings — equipment critical to India’s expanding metro rail, highway, and urban infrastructure projects.
The government designed the plan to ensure companies manufacture—not merely assemble—these machines in India, with strict emphasis on indigenising core components. As noted by industry observers, this avoids perpetuating dependence on foreign suppliers for key subsystems. One entity positioned to benefit is Bharat Earth Movers Limited, which is actively exploring domestic TBM production. Other potential beneficiaries include Larsen & Toubro and Johnson Lifts.
China Import Decline and Geopolitical Context
India’s reliance on Chinese tunnelling machinery has sharply declined amid bilateral tensions following the 2020 border clashes. In 2024, China delayed customs clearances for TBM shipments to India, triggering supply disruptions. Indian imports of tunnelling machinery from China fell to $3 million in 2023–24 from $18 million a year earlier — then dropped further to $500,000 in 2024–25 before rising slightly to $800,000 in 2025–26.
Although India eased restrictions on Chinese investment and public procurement participation in 2026, the episode revealed a structural gap: import curbs do not automatically generate domestic capacity. Without scalable local production of technologically advanced machinery, infrastructure projects remain vulnerable to external supply shocks.
Broader Market and Strategic Intent
The initiative coincides with rapid growth in India’s construction and infrastructure equipment market, currently valued at Rs 1 lakh crore ($10.4 billion). Manish Mathur, CEO at Cranes, Action Construction Equipment, stated:
“At a time when the Indian government is prioritising self-reliance in manufacturing and reducing dependence on imports, such incentives can provide a significant impetus to homegrown manufacturers by enabling greater investment in technology, R&D and indigenisation.”
Mathur added that the measures aim to help Indian firms “move further up the technology curve, build globally competitive products and scale India’s position as a reliable global hub for construction equipment manufacturing.” A final decision on the incentive plan is expected imminently, though India’s heavy industries and finance ministries have not yet responded to media inquiries.
Source: indiatoday.in
Compiled from international media by the SCI.AI editorial team.
