BEML plans to develop its own tunnel boring machines to reduce dependence on China

The Commerce Minister stated that India will strive to reduce its dependence on China for critical resources such as rare earth elements. Furthermore, startups are already developing engines that do not require the use of rare earth materials.

Minister Piyush Goyal announced on Tuesday that India will begin manufacturing tunnel boring machines if China imposes export restrictions on such equipment. Goyal made this statement during his address at the 'Young Leaders Discourse Forum,' organized by the Kirori Mal College in Delhi.

These statements came amid China's efforts to restrict the export of these machines. Starting November 18, trading partners will be required to obtain a license to import this equipment.

Earlier, Minister of Railways Ashwini Vaishnaw noted on social media platform X that India will soon achieve self-sufficiency in the production of such machines. He added that India currently produces 8-meter diameter drilling rigs, and installations with a 15-meter diameter have also begun to be released. Additionally, there is a TBM manufacturing plant in Tamil Nadu, and India will soon start producing TBMs with a diameter exceeding 16 meters, signifying self-reliance (Atmanirbhar) in TBMs—from design and manufacturing to maintenance.

Drilling rigs are vital infrastructure equipment used to lay circular or near-circular tunnels through various types of soil—from hard rock to soft, water-saturated ground—with minimal surface impact. China is the primary supplier of this equipment to India, followed by Germany and the USA.

In 2025–26, India imported machinery worth $486 million, half of which came from China. Besides drilling rigs, Goyal emphasized India's intention to decrease reliance on China for other raw components, such as rare earth elements.

Goyal recounted that after China announced restrictions on rare earth elements, he convened a meeting with startups and urged them to create engines without using these elements. He noted that some startups have already started producing rare earth-free engines that possess comparable quality and efficiency.

China's announcements regarding drilling rigs occur during a period when New Delhi and Beijing are attempting to improve relations following the escalation in the Galwan Valley in 2020, when soldiers from both sides engaged in a clash.

As infrastructure projects grow, the demand for such machines in India has increased, particularly concerning metro projects and construction work in mountainous regions. Two recently established manufacturing facilities cover part of India's needs. According to a metro specialist, two leading global manufacturers have plants in Chennai and Bengaluru, each capable of producing up to 10 machines annually, with 65 percent of components manufactured domestically.

One such manufacturer is the German company Herrenknecht AG, which supplies machines from its facility in Chennai. The developer noted that this provides some buffer against Chinese restrictions.

Some leading Indian Engineering, Procurement, and Construction (EPC) companies believe that in the current situation, they are less vulnerable to a crisis from China than they would have been in the past. The contractor mentioned that alternative suppliers are available in Germany, Japan, and other countries, but replacing specialized machinery is not a simple task.

Drilling rigs hold strategic importance for India's national security, as many are utilized in mountainous border regions where the government develops strategic infrastructure. Goyal stated that relations with China remain good and could improve if no new obstacles arise.

In September, Prime Minister Narendra Modi met with Chinese President Xi Jinping on the sidelines of the BRICS summit in New Delhi. During this meeting, the leaders discussed structural trade imbalances, supply chain issues, and ensuring significant and predictable market access. This was Xi Jinping's first visit to India in seven years.

Goyal also reiterated India's defensive stance on the dairy and agricultural sectors, adding that New Delhi would never grant market access to any trading partners in these sectors under any trade agreements. He stressed: 'We have never opened our dairy industry to anyone. We are very sensitive about preventing genetically modified products from entering India, and we have never allowed it, nor will we allow it in the future.'

According to Goyal, New Delhi's efforts are focused on securing preferential market access in sectors where India is strong, such as processed foods, seafood, precious stones and jewelry, textiles, leather, and footwear, as well as pharmaceuticals. He concluded: 'Our effort is to secure a preferential rate for India compared to our competitors in products where we are strong in pricing and quality.'

While manufacturers and buyers gather at the China International Import Expo (CIIE) in China, Chinese industrial technologies are transforming production in Africa thousands of miles away.

In the city of Kisumu, located by the lake in Kenya, equipment manufactured in China is helping local producers increase efficiency, boost production volumes, and meet the growing demand for packaging materials.

Packaging plays a critical role in protecting products, preserving their quality, and establishing a link between producers and consumers, covering sectors from food and agriculture to pharmaceuticals and retail.

IBS Pack Prints, established in 2023, is utilizing Chinese technology to strengthen local manufacturing and support businesses across western Kenya.

Chinese Equipment Stimulates Local Production

IBS Pack Prints was created to address the shortage of packaging suppliers in western Kenya, a region home to numerous tea factories, bakeries, and agricultural processing plants.

Beatrice Omari, the company's administrative director, noted that investments were aimed at bringing packaging production closer to manufacturers in the Nyanza and Western regions. She stated: 'The director had a vision for polyethylene packaging because we only have one in Eldoret in this region, so we wanted to cover at least this side.'

Today, Chinese equipment forms the backbone of the factory's operations, handling the tasks of printing, processing, and cutting packaging materials. Omari emphasized: 'In fact, 99% of the machines are from China. Furthermore, the raw materials are also from China, such as CPP and PET,' adding that other materials are sourced from Saudi Arabia.

The collaboration goes beyond mere equipment supply. Engineers from China visited Kenya to install and commission the machinery, ensuring the operational readiness of the production systems before handing them over to local staff. She explained: 'They sent the machines along with their mechanical engineers who installed each machine and ensured the machines were working before leaving the country.'

These investments have strengthened local manufacturing capabilities and reduced the region's reliance on sourcing packaging from distant suppliers.

Automation Boosts Efficiency and Skills

Inside the factory, machines handle the printing, processing, and cutting of packaging materials, while workers monitor the process and inspect the finished goods. This technology has automated tasks previously done manually, contributing to improved efficiency and production stability.

Eric Onyango, the company's production manager, noted that modern equipment has transformed daily operations. He said: 'Now you just turn on the machine, and the knife cuts. So it makes the job easier compared to how we used to do it manually.'

However, operating complex equipment requires technical knowledge, especially when dealing with various packaging materials and maintaining production systems. Onyango traveled to China in 2025 to acquire additional equipment as part of the company's expansion.

His experience reflects the growing importance of technical cooperation in assisting African producers in adopting modern industrial technologies. Beyond increasing productivity, such investments open up opportunities for workers to develop skills in machine operation, maintenance, and quality control.

Packaging Strengthens Value Chain Production

Although packaging is often the final stage of production, it plays a crucial role in determining how goods reach the consumer. For food processors, it helps maintain quality and protect goods during transport. For manufacturers and retailers, packaging enhances branding and product identification.

Henry Koski, assistant branch manager at Kipchimatt, a retailer in western Kenya, asserts that packaging allows consumers to distinguish products from competing brands. He stated: 'Packaging identifies goods from one producer to another and one company to another.'

He cited tea and sugar products from Kipchimchim Group of Companies as an example of how packaging supports brand recognition. IBS Pack Prints supplies packaging for bread, tea, sugar, water, ice cream, confectionery, and beans, as well as materials used by hospitals and pharmaceutical companies. The company's diverse clientele demonstrates the industry's contribution to agriculture, food processing, healthcare, and retail.

As Kenya expands local production and adds value to agricultural products, reliable packaging will remain indispensable for enterprises aiming to enter broader markets.

Challenges and Growth Opportunities

Despite technological progress, packaging manufacturers face difficulties, including high equipment costs, imported raw materials, and unreliable power supply. At IBS Pack Prints, power outages can disrupt production and necessitate restarting machines. Onyango explained: 'The problems we face mainly occur during voltage spikes. This machine is designed so that when the electricity goes out, everything stops.'

Such failures can slow down production and increase operating costs, highlighting the importance of reliable infrastructure. Nevertheless, the demand for packaging continues to create opportunities for industrial investment. Access to Chinese equipment provides Kenyan enterprises with the ability to modernize production, develop technical skills, and strengthen manufacturing capacity.

In Kisumu, IBS Pack Prints demonstrates how trade relations between China and Africa are translating into practical industrial development. As Kenya strives to expand local production and add value to domestic products, packaging becomes a vital link between technology, production, and market access.

China is tightening export controls on construction equipment, including tunnel boring machines—some of the most complex and large industrial devices in the world. These machines are used for building roads, railways, and subways under mountains. China holds a dominant position in the global market, and India is one of its major consumers.

Although construction sites may not seem like the most obvious bottleneck in the global economy, unlike artificial intelligence technologies, which Beijing has also proposed including in the list of restrictions, or rare earth elements used in smartphones and high-tech weaponry, China's control in this industry is strong but not absolute. The attempt to use this as leverage could encourage other countries to increase their own production.

Kyle Chan, a researcher at the Brookings Institution, noted that 'Beijing is increasingly viewing its position as a key global producer of construction equipment from a strategic perspective. This increases dependency risks and motivates other countries to try to reduce reliance on China.'

Nevertheless, this is difficult to achieve in the short term. While wars in Ukraine and Iran have highlighted the growing military importance of underground structures, the new restrictions are particularly significant for India as they come into effect later this month.

In addition to tunnel boring machines, the restrictions also cover other construction equipment, such as concrete spraying machines at great heights. Beijing cites the dual-use potential of such technologies in both military and civilian projects, stating that stricter rules will apply to 'sensitive countries and regions that have disputes with China.'

Indian leaders may view this wording as an allusion to them. The Himalayan border region between the two most populous countries in the world has long been a zone of tension, and tensions flared up again last month. India is building railway lines and roads in this area, aiming to reduce troop mobilization time, which will require a large number of tunnels.