India set to approve $1.2 billion incentive plan for building equipment manufacturing, sources say
Key Takeaways
- •The proposed scheme would provide $1.2 billion in incentives for local manufacturing, according to sources.
- •Officials expect the initiative to attract $1.8 billion in new investment over the next seven years.
- •The plan would focus on machinery including tunnel boring machines and fire-fighting equipment.
- •A key goal is to reduce dependence on imports, especially those coming from China.
- •The scheme would set local value-addition targets for equipment that is currently fully imported.
India is set to launch a $1.2 billion incentive scheme to support local manufacturing, according to sources.
The proposed initiative is aimed at attracting $1.8 billion in new investment over the next seven years. It would focus on key machinery including tunnel boring machines and fire-fighting equipment.
A central objective of the plan is to reduce dependence on imports, especially from China. The scheme would also establish local value-addition targets for machines that are currently fully imported.
The effort fits into India’s broader push to expand domestic industrial capacity in equipment categories that are important for infrastructure and construction activity, while using incentives to encourage companies to produce more components locally rather than rely on finished imports.
