India expected to approve $1.2bn incentive to boost construction manufacturing
India is expected to approve a $1.2 billion incentive scheme to ramp up local production of advanced construction gear: think tunnel boring machines, fire-fighting equipment, and elevators.
Announced in the 2026-27 Union Budget, this move aims to cut down on imports and attract $1.8 billion in investments over seven years by encouraging companies to build more at home.
Union Cabinet to consider plan soon
The Union Cabinet is expected to consider the plan soon and comes after India slashed its reliance on Chinese tunneling machines, especially since border tensions in 2020 led to restrictions on investments and public procurement from China.
Imports of these machines dropped sharply from $18 million in 2022-23 to just $800,000 by 2025-26.
The new push will help homegrown firms like BEML, Larsen & Toubro, and Johnson Lifts meet rising demand as India invests big in metros, roads, and airports, making "Made in India" machinery a bigger deal than ever.