India approves $1.2B equipment incentive scheme
Analysis based on 13 articles · First reported Aug 21, 2026 · Last updated Aug 21, 2026
The incentive scheme is expected to boost domestic manufacturers of construction equipment, potentially improving their revenue and market share. It may also reduce India's reliance on Chinese imports, affecting trade dynamics and benefiting local suppliers.
India is set to approve a $1.2 billion incentive scheme to boost domestic manufacturing of high-value construction and infrastructure equipment, including tunnel boring machines, fire-fighting equipment, and elevators for high-rise buildings. The seven-year scheme aims to attract $1.8 billion in fresh investment and includes local value-addition targets. The move is part of Prime Minister Narendra Modi's push to reduce dependence on China for critical machinery, following border clashes in 2020 and subsequent Chinese export restrictions. Imports of tunnelling machinery from China have fallen sharply. The scheme could benefit state-run BEML, Larsen & Toubro, and Johnson Lifts. India's construction and infrastructure equipment market is valued at about $10.5 billion and is expected to expand with increased infrastructure spending.
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