China's Export Controls on Tunnel Boring Machines Highlight India's Infrastructure Dependency
China's export controls on tunnel boring machines have spotlighted India's reliance on foreign suppliers for specialized infrastructure equipment, prompting the Indian government to push for a $1.2 billion incentive scheme to boost domestic manufacturing. Despite India's increasing infrastructure spending, the industrial ecosystem supporting this growth is still incomplete. The challenge is to develop local manufacturing capabilities in high-value machinery rather than just replacing imports. The TBM situation reveals a strategic vulnerability, as China's new regulations require exporters of TBMs and other specified machinery to obtain licenses under its dual-use export control framework. The impact on major infrastructure projects, such as the Mumbai-Ahmedabad bullet train corridor, will depend on the scope of the controls and the availability of alternative suppliers.
Key facts
- China imposed export controls on tunnel boring machines (TBMs) on November 18.
- India is working on a $1.2 billion incentive scheme to boost domestic manufacturing of construction and infrastructure equipment.
- India's imports of tunneling machinery from China fell from $18 million in 2022-23 to $800,000 in 2025-26.
- The new restrictions are unlikely to significantly disrupt large-scale highway construction in India.