Why India is betting $1.2 billion on homegrown construction equipment
The Indian government is planning a $1.2 billion incentive scheme to boost domestic manufacturing of high-value construction equipment like tunnel boring machines. The initiative aims to reduce reliance on Chinese imports and attract $1.8 billion in new investments over seven years.
Why it matters
This move is part of a broader strategic effort to enhance India's industrial self-reliance and infrastructure development capabilities.
India is set to approve a $1.2-billion incentive scheme for manufacturing high-value and technologically advanced construction and infrastructure equipment, as the government seeks to reduce the country's dependence on China for critical machinery, according to two government sources cited by Reuters.The scheme, which is expected to be finalised soon, aims to attract around $1.8 billion in fresh investment by offering incentives to domestic manufacturers over seven years, one of the sources said.The proposed scheme will cover equipment such as tunnel boring machines (TBMs), fire-fighting equipment and elevators used in high-rise buildings.India seeks to build domestic manufacturing capacityIndia remains heavily dependent on imported tunnel boring machines, with China among the key suppliers of tunnelling and boring equipment used for metro rail and highway construction.The new scheme has been designed after assessing the incentives required to make domestic production viable, taking into account India's existing dependence on imports, the sources said.The plan…
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in