India is preparing a $1.2 billion incentive scheme to strengthen domestic manufacturing of advanced construction and infrastructure equipment, including tunnel boring machines (TBMs), specialised cranes, high-rise elevators and other high-value machinery. The move is aimed at reducing the country’s dependence on imports, particularly from China, while supporting India’s rapidly expanding infrastructure pipeline.
The proposed scheme is expected to encourage local manufacturing and attract significant new investment over the coming years. A major focus will be equipment and components where India continues to rely heavily on overseas suppliers, including technologically complex tunnelling and construction systems. Companies such as BEML, Larsen & Toubro and Johnson Lifts could potentially benefit from the initiative.
The push has gained urgency following supply-chain disruptions involving TBMs needed for major infrastructure projects. India’s growing network of metros, rail corridors, tunnels, highways, ports and airports is creating substantial demand for specialised machinery, making reliable domestic production increasingly important.
The Mumbai-Ahmedabad Bullet Train project highlights the scale of this requirement. Its underground Mumbai section uses some of the largest TBMs deployed for rail construction in India, underlining the advanced technology required for future infrastructure development.
By building stronger domestic capabilities, India aims not only to improve infrastructure supply-chain security but also to develop a competitive manufacturing ecosystem capable of serving domestic and export markets.
