India is preparing a $1.2 billion incentive programme to strengthen domestic manufacturing of construction and infrastructure equipment and reduce dependence on Chinese machinery. The proposed seven-year scheme is expected to attract approximately $1.8 billion in fresh investments, according to a report by Reuters cited by Outlook Business. <Link url=”https://www.outlookbusiness.com/news/india-targets-china-dependence-with-12-billion-bet-on-heavy-equipment” title=”Source: Outlook Business”/>
The programme is expected to cover critical equipment, including tunnel boring machines (TBMs), firefighting systems and elevators for high-rise buildings. These machines are essential for infrastructure projects involving metro networks, highways, airports and urban development.
Potential beneficiaries include state-owned BEML, Larsen & Toubro and Johnson Lifts. The scheme is also expected to introduce local value-addition targets to encourage manufacturers to produce more components and equipment within India.
India’s dependence on imported tunnelling machinery has highlighted gaps in domestic manufacturing capabilities. Chinese suppliers have traditionally played an important role in this segment, making local production a strategic priority.
The proposed initiative comes as India’s construction and infrastructure equipment market continues to expand, supported by investments in transportation and urban infrastructure.
Through financial incentives and increased domestic production, the government aims to strengthen manufacturing capabilities, attract private investment and reduce supply-chain risks associated with critical machinery imports. The scheme’s success will depend on implementation and the development of a competitive domestic manufacturing ecosystem.
