China curbs spur push for local manufacturing

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The Economic Times daily newspaper is available online now. Read Today's Paper China curbs spur push for local manufacturingBy ET BureauLast Updated: Oct 20, 2026, 01:38:00 AM ISTSynopsis

India's government will consult stakeholders on measures to mitigate the impact of Chinese export constraints. China recently imposed new restrictions on heavy machinery, such as tunnel boring machines, set to take effect soon. Indian officials assert that there should be no significant slowdown in highway development despite these curbs. The domestic construction industry is becoming increasingly self-sufficient regarding general equipment needs.

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Loading...×New Delhi: The Centre will soon hold deliberations with stakeholders on measures needed to mitigate the impact of curbs imposed by China on exports of heavy equipment machinery, even as officials ruled out any large-scale slowdown in highway development due to Beijing's measures.

The scheme to incentivise domestic manufacturing of this crucial equipment is close to final approvals, they added. China on Monday announced new export controls on key machinery, including tunnel boring machines. "However, there could be issues with the import of high-duty engines that go into this equipment, high mass cranes and tunnel boring equipment which could impact some critical projects, including the Bullet Train project," said an official.

Read more:India-New Zealand FTA kicks in October 20, gives all Indian goods zero-duty access

Another official said that the impact of these proposed curbs is being assessed. China has announced new export controls on key machinery, including tunnel boring machines (TBM). The restrictions were aimed at safeguarding national security and interests, according to China's Ministry of Commerce (MOFCOM), reports from Beijing said, adding the export controls will take effect on November 18.

While TBM export curbs have been building up, the new restrictions also cover walking excavators and plateau-type wet shotcrete machines, the Chinese commerce ministry's announcement noted. Commerce and industry ministry officials were not immediately available for comment. Beijing now also requires exporters to accurately identify and declare controlled items, specifying their dual-use export control codes in customs declarations.

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"There will not be much impact of these curbs for general construction equipment since the domestic industry is self-sufficient," said Shalabh Chaturvedi, Managing Director, Construction Equipment Business, India & SAARC at US-headquartered CNH Industrial.

"Only specialised equipment imports may be affected, but local players have started setting up facilities and alternative sources of imports are also available," he added. Last month, Minister for Heavy Industries H D Kumaraswamy also said India's construction equipment manufacturing industry needs to reduce its dependence on imports. "Equipment and components valued at around ₹45,000 crore have a high import dependence," Kumaraswamy had said at an event organised by the Indian Construction Equipment Manufacturers' Association (ICEMA). Budget 2026-27 had also announced a scheme to enhance construction and infrastructure equipment manufacturing and promote the production of critical equipment and components.
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