India launches $1.2 billion initiative to boost domestic machinery manufacturing

India has launched a $1.2 billion incentive programme designed to bolster domestic manufacturing of high-value construction and infrastructure machinery. The initiative seeks to reduce the nation's heavy reliance on imports, particularly from China, for critical equipment such as tunnel boring machines (TBMs), firefighting systems, and elevators used in high-rise construction.

The government aims to attract approximately $1.8 billion in additional investment over the next seven years through these incentives. This strategic move follows increased tensions in India-China relations and subsequent trade policy shifts, including limitations on Chinese investments and tightened export protocols from China regarding specialized machinery like TBMs, which are essential for metro rail and underground infrastructure projects.