Budget 2026 Pushes Domestic Construction Equipment Manufacturing with Rs 200 Crore CIE Scheme

The Union Budget 2026 has placed renewed focus on strengthening India’s construction and infrastructure ecosystem with the announcement of a Rs 200 crore Scheme for Enhancement of Construction and Infrastructure Equipment (CIE). The initiative is aimed at boosting domestic manufacturing capacity for high-value and technologically advanced construction equipment, a segment where India continues to rely heavily on imports.

The scheme is designed to support the production of a wide range of equipment used across infrastructure projects. This includes lifts and safety systems used in multi-storey residential buildings, fire-fighting equipment for urban infrastructure, tunnel-boring machines for metro rail projects, and specialised machinery required for road construction in difficult and high-altitude terrain. By encouraging local production, the government aims to build a stronger, self-reliant manufacturing base aligned with India’s long-term infrastructure goals.

A key element of the CIE scheme is the proposed development of Hi-Tech Tool Rooms through designated Central Public Sector Enterprises. These facilities will function as automated service centres where precision components can be designed, tested, and manufactured at scale. The tool room model is expected to lower production costs, improve quality standards, and reduce turnaround times compared to overseas sourcing.

Industry experts have welcomed the move, noting that domestic capability for advanced construction machinery remains limited, particularly in segments such as tunnel-boring equipment used for metro and underground projects. The scheme is expected to bridge this gap by enabling access to advanced manufacturing infrastructure and technical expertise within the country.

The announcement comes at a time when public capital expenditure continues to remain elevated, with Budget 2026 maintaining a strong thrust on infrastructure development. With sustained investments in highways, urban transport, housing, and industrial corridors, demand for modern construction equipment is expected to rise steadily over the coming years.

By linking manufacturing support with infrastructure expansion, the CIE scheme signals a strategic effort to integrate India’s construction growth with domestic industrial development. Over time, this approach could help reduce import dependence, create skilled employment, and position India as a competitive manufacturing hub for construction and infrastructure equipment.