The Chinese Ministry of Commerce and the General Administration of Customs decision to place tunnel-boring machines (TBMs) on an export control list reveals a blind spot in India’s supply chain diversification. The curbs include TBMs, walking excavators, and high-altitude wet shotcrete machines. From November 18, if a shipment is intended for countries or regions deemed sensitive due to ongoing disputes with China, exporters will need an export licence from commerce authorities. For other countries/regions, exporters will need to be registered, obtain an export certificate, and submit end-use declarations stating that the equipment will not be re-routed to sensitive locations. While China has cornered around 70% of the global TBM market, prominent manufacturers in the West also maintain substantial component supply chains in the country to cut manufacturing overhead. Further, TBMs are complex to build as they have to be configured to geological characteristics at the project site and perform numerous tasks. Where a suitable TBM exists, it can be used for civilian or military purposes. India has struggled with TBM-related hold-ups with China for at least two years now, including for the Mumbai-Ahmedabad high-speed rail project. Germany’s Herrenknecht AG set up an assembling and refurbishing facility in Chennai in 2007-08. TBM production economics differ significantly from conventional construction equipment as new plants need a minimum number of orders and must be able to access the industrial capability required to design, manufacture and repair specialised components.
However, even though India is one of the world’s largest TBM importers, expecting every sophisticated machine to be produced domestically will send public infrastructure costs soaring. Even now, depending on China’s decision on the TBMs set for India, India may have to redirect its procurement to facilities based directly in Germany or Japan, say, and absorb the higher capital cost. The BEML experience shows that manufacturing partnerships can fail without secure licensing arrangements and access to sustained demand. India should pursue domestic manufacturing alongside international partnerships, e.g., making equipment in the country under agreement with established foreign firms, and develop shared industrial capabilities rather than singular ‘national champions’, as TBM manufacturers and their suppliers can benefit from access to common testing and precision manufacturing infrastructure. Overall, Beijing is systematically identifying sectors where it commands a significant global capacity and establishing export controls to counter western technological restrictions, such as on advanced semiconductors, so any critical infrastructure sector relying on Chinese supply lines will face a compounding geopolitical risk.
Published - October 23, 2026 12:15 am IST