India Finalizes $1.2 Billion TBM Incentive Plan to Cut China Reliance
Updated
Updated · India Today · Aug 21
India Finalizes $1.2 Billion TBM Incentive Plan to Cut China Reliance
3 articles · Updated · India Today · Aug 21
Summary
$1.2 billion in incentives is being readied to boost Indian production of tunnel boring machines, fire-fighting systems and elevators, with the government expecting about $1.8 billion of fresh investment over seven years.
China's tighter TBM exports and delayed customs clearances in 2024 exposed a supply risk for India's infrastructure buildout, where domestic capacity still falls short for metro, highway and other tunnel projects.
Imports of tunnelling machinery from China fell to $500,000 in 2024-25 from $18 million a year earlier, then edged up to $800,000 in 2025-26, underscoring how vulnerable projects remain to overseas disruptions.
The scheme is designed to push deeper local manufacturing rather than simple assembly, potentially benefiting companies such as BEML, Larsen & Toubro and Johnson Lifts.
The move fits India's broader self-reliance drive in a construction equipment market worth about Rs 1 lakh crore, or $10.4 billion, as New Delhi tries to build advanced domestic machinery capacity.