1 week ago
India Plans $1.2 Billion Incentive to Build Equipment
India wants to make more large construction machines inside the country.
The government is planning to spend $1.2 billion on a seven-year incentive programme.
Incentives are benefits that encourage companies to invest and produce goods.
The programme could attract about $1.8 billion from businesses.
It may support machines such as tunnel boring machines, firefighting equipment and elevators.
India currently imports much of this machinery, including from China.
The plan would set goals for how much of each machine must be made locally.
Companies including BEML, Larsen & Toubro and Johnson Lifts could benefit if the scheme is approved.
India is preparing a seven-year, $1.2 billion incentive scheme for high-value construction and infrastructure equipment manufacturing.
The programme is expected to attract about $1.8 billion in fresh investment and introduce local value-addition targets.
Supported products could include tunnel boring machines, firefighting equipment and high-rise elevators.
The plan aims to reduce India’s reliance on imported machinery, particularly equipment supplied by China.
BEML, Larsen & Toubro and Johnson Lifts could benefit, while a final government decision is expected soon.
- Who
- The Indian government, domestic manufacturers and potential beneficiaries including BEML, Larsen & Toubro and Johnson Lifts.
- What
- India is preparing a $1.2 billion, seven-year incentive scheme to expand domestic production of construction and infrastructure equipment.
- Where
- India, with the equipment intended for the country’s infrastructure projects.
- When
- The scheme is expected to receive a final decision soon and would run for seven years.
- Why
- To attract investment, build domestic manufacturing capacity and reduce reliance on imported machinery, particularly from China.
Key facts
- Proposed government incentive
- $1.2 billion
- Programme duration
- Seven years
- Expected fresh investment
- Around $1.8 billion
- Potential equipment
- Tunnel boring machines, firefighting equipment and high-rise elevators
- Indian construction and infrastructure equipment market
- About Rs 1 trillion ($10.5 billion)
- Tunnel machinery imports from China
- $18 million in 2022-23, falling to $3 million in 2023-24, $500,000 in 2024-25 and rising to about $800,000 in 2025-26
- Potential beneficiaries
- BEML, Larsen & Toubro and Johnson Lifts
Sources
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