The government is preparing an ambitious scheme worth between ₹14,000 and ₹16,000 crore aimed at promoting domestic manufacturing of critical construction machinery. The move is designed to reduce dependence on imports and strengthen India’s industrial self-reliance, particularly in equipment essential for large-scale infrastructure projects.
The proposed scheme, currently under inter-ministerial review, is expected to cover high-value machinery such as tunnel boring machines, cranes, and other heavy construction equipment that form the backbone of modern infrastructure development. By incentivising local manufacturing, the government seeks not only to enhance domestic capabilities but also to encourage technology transfer, innovation, and job creation within the country.
Officials indicate that the scheme could be rolled out in the next fiscal year, aligning with the government’s broader strategy to support the Make in India initiative and bolster critical sectors tied to economic growth. The focus on reducing import reliance also reflects concerns over supply chain disruptions and the rising costs of overseas procurement, which have in recent years slowed down several large projects.
Industry stakeholders believe the scheme could provide a major boost to Indian manufacturers by offering financial incentives, production-linked benefits, and research and development support. Such measures would help bridge the technological gap between domestic producers and global players, ensuring India becomes more competitive in the global construction equipment market.
With infrastructure continuing to be a cornerstone of India’s growth agenda—spanning highways, metro systems, industrial corridors, and energy projects—the demand for heavy machinery is projected to rise sharply. A strong domestic ecosystem for construction equipment would not only cut costs but also ensure timely execution of mega projects. The scheme is therefore being seen as a decisive step towards achieving industrial resilience and supporting the country’s long-term infrastructure ambitions.
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