# India set to approve $1.2 billion incentive plan to make building equipment, sources say — retained record

> Retained news record from news:india-et-markets.

Canonical: https://highsignal.app/data/records/2aace08730f3135a

[← sources](https://highsignal.app/data)


source: [news](https://highsignal.app/data/news) (news:india-et-markets)  published 2026-08-21 13:12 ingested 2026-08-22 06:37

[original source ↗](https://economictimes.indiatimes.com/markets/digital-real-estate/realty-news/india-set-to-approve-1-2-billion-incentive-plan-to-make-building-equipment-sources-say/articleshow/133405575.cms)

## retained text



```
India remains heavily dependent on imported tunnel boring machines, with China among the key suppliers of tunnelling and other boring equipment used in metro rail and highway construction, underscoring the country's long-standing struggle to build domestic manufacturing capacity. The government of Prime Minister Narendra Modi is making a renewed push to reduce reliance on key imports even as previous attempts to boost domestic manufacturing have failed to make a dent.
The new scheme has been designed after assessing the incentives required to make local production viable against the country's existing import dependence, the sources said.
The incentive plan could benefit state-run BEML, which has plans to domestically manufacture tunnel boring machines, along with other equipment makers including Larsen and Toubro and Johnson Lifts.
The plan would also include targets for local value addition for machines that are presently fully imported. A final decision on the incentive plan is expected soon, both the sources said. India's federal heavy industries ministry and finance ministry did not respond to a request for comment.
India's construction and infrastructure equipment market, valued at 1 trillion rupees ($10.5 billion), is set to expand as the country accelerates spending on roads, metros, airports and other infrastructure.
CHINESE DEPENDENCE
Following the 2020 deadly border clashes between Indian and Chinese troops, New Delhi had imposed restrictions on investments and public procurement from Beijing.
In 2024, China gradually imposed restrictions on exports of tunnel boring machines by delaying customs clearances for shipments to India. Imports of tunneling machinery from China dropped to $3 million in 2023-24 from $18 million a year earlier. They fell further to $500,000 in 2024-25, and were $800,000 in 2025-26. The issue of easing restrictions on tunnel boring machines also figured in bilateral talks between the two countries last year. In 2026, India eased restrictions on investments made by Chinese companies and gradually allowed Chinese firms to participate in government contracts.
The incentive plan aims to address the gap where India does not have sufficient manufacturing capability and has high import dependency, the first source said.
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
```



document fetched 2026-08-22 06:37