Page 60 - Construction_Opportunities_Sep_2026

EQUIPMENT TICKER TAPE

directly into infrastructure procurement decisions. to keep growing as public spending rises on roads, metro systems,
airports and related infrastructure. That growth makes the sector
Domestic manufacturers could be the immediate winners more attractive for suppliers, but it also raises the cost of continued
The incentive framework could open a window for Indian import dependence. The more India builds, the more it needs
manufacturers that have either already signalled interest in the machines that can be sourced reliably and competitively at
segment or have the scale to move quickly. State-run BEML home. In that sense, the proposed package is as much a supply-
is among the companies that could benefit, with plans to chain security measure as it is an industrial policy. If successful,
manufacture tunnel boring machines in India. Larsen and Toubro it could reduce exposure to external disruptions, shorten
and Johnson Lifts are also expected to be in the frame, given procurement timelines for large projects and create a base of
their presence in engineering, construction and vertical transport specialised equipment makers that can serve both domestic and
equipment. export markets over time.
The scheme is also likely to include local value-addition targets
for machines that are currently imported in fully built form. That China ties, policy recalibration and the road ahead
suggests the policy is not only about assembling equipment The backdrop to the plan is also changing diplomatically. In 2026,
domestically, but about pushing a larger share of components, India eased restrictions on investments by Chinese companies
sub-systems and engineering work into Indian factories over time. and gradually allowed Chinese firms to participate in government
For policymakers, that distinction matters because it determines contracts, even as the earlier curbs on sensitive procurement
whether incentives create genuine industrial capability or merely remained part of the policy memory. The tunnel boring machine
encourage final assembly. issue was also discussed in bilateral talks last year, reflecting how
a niche industrial category can become a point of strategic
Broader industrial strategy meets a familiar import problem negotiation between two large economies. For now, the final
The proposal fits into Prime Minister Narendra Modi’s wider effort to decision on the incentive package is still pending, but sources
strengthen domestic manufacturing in sectors where India remains indicated that approval could come soon. The ministries of heavy
dependent on foreign suppliers. Earlier attempts to deepen local industries and finance did not respond to requests for comment.
production in several strategic industries have delivered mixed If cleared, the scheme would mark one of India’s more focused
results, leaving the government to revisit incentive-led approaches attempts to localise a technically demanding segment of capital
with more targeted design. goods manufacturing, with the potential to influence how the
India’s construction and infrastructure equipment market is country builds everything from metro corridors to high-rise urban
estimated at `1 lakh crore, or about $10.5 billion, and is expected infrastructure in the years ahead.

60 CONSTRUCTION OPPORTUNITIES|SEPTEMBER 2026