In a significant boost to domestic manufacturing, the Finance Minister has announced a ₹200 crore incentive scheme for construction equipment made in India in Budget 2026, reinforcing the government’s focus on self-reliance and infrastructure-led growth. The initiative is aligned with the broader Make in India and Atmanirbhar Bharat vision.
The scheme is aimed at supporting Indian manufacturers of construction machinery such as excavators, loaders, cranes, and road-building equipment. It is expected to encourage localisation of components, promote technology upgradation, and improve global competitiveness of Indian-made equipment.
Officials said the incentive will focus on enhancing manufacturing capabilities, supporting R&D, and reducing dependence on imports, especially in high-value and technologically advanced machinery. The move comes at a time when India’s construction equipment market is expanding rapidly, driven by large investments in highways, railways, urban infrastructure, and housing.
Industry experts believe the scheme could help domestic manufacturers scale up production, improve quality standards, and boost exports to emerging markets in Asia, Africa, and the Middle East. It may also attract global OEMs to expand manufacturing bases in India through partnerships and localisation strategies.
Analysts view the announcement as a timely intervention that strengthens the construction ecosystem, creates skilled jobs, and positions India as a potential global hub for construction equipment manufacturing in the coming years.
