Article 2: Tunnelling through
Why in news: China’s export controls on tunnel-boring machines (TBMs) have exposed India’s dependence on foreign suppliers and raised concerns about delays, infrastructure costs and geopolitical risks.
Key Details
- China’s export restrictions: China has placed tunnel-boring machines, walking excavators and wet shotcrete machines under export controls. Shipments to sensitive destinations require additional approvals and end-use declarations.
- Global market dominance: China controls around 70% of the global TBM market. Even some Western manufacturers depend on Chinese component supply chains, making it difficult to shift production quickly.
- Impact on Indian projects: Delays in procuring TBMs have affected infrastructure projects, including the Mumbai–Ahmedabad high-speed rail corridor. Buying machines from Germany or Japan may reduce dependence on China but increase costs.
- Challenges in domestic production: TBMs require specialised engineering and customisation based on local geology. Manufacturing them in India needs steady orders, skilled suppliers, precision engineering and advanced testing facilities. Producing every machine domestically could raise public infrastructure costs.
- India should combine domestic manufacturing with international partnerships. Technology-sharing agreements, reliable licensing, common industrial facilities and sustained demand can strengthen local capabilities without relying entirely on a few domestic manufacturers.
China’s Export Restrictions and Their Implications
- China has placed tunnel-boring machines (TBMs) and related equipment on its export control list.
- The restrictions also cover walking excavators and high-altitude wet shotcrete machines.
- Exporters may need licences, registration, certificates and end-use declarations, depending on the destination.
- China controls around 70% of the global TBM market, making many countries dependent on Chinese supplies.
- These restrictions expose India’s supply-chain vulnerabilities in critical infrastructure projects.
Importance of TBMs and India’s Challenges
- TBMs are specialised machines used to excavate tunnels for metro rail, highways, railways and other infrastructure.
- They must be customised to the geological conditions of each project and require specialised components and maintenance.
- Such equipment may have dual-use applications, serving both civilian and military purposes.
- India has faced delays in procuring TBMs from China, including for the Mumbai–Ahmedabad high-speed rail project.
- Although foreign manufacturers operate in India, domestic production remains constrained by technological, industrial and economic challenges.
Limitations of Complete Domestic Manufacturing
- TBM production requires high capital investment, specialised engineering skills and precision manufacturing.
- New manufacturing plants need sufficient orders to achieve economies of scale.
- Producing every sophisticated machine domestically could significantly increase public infrastructure costs.
- India may need to procure machines from Germany or Japan at higher costs if Chinese supplies are restricted.
- The experience of BEML highlights the importance of secure licensing arrangements and sustained demand for successful manufacturing partnerships.
Geopolitical and Supply-Chain Risks
- China is using its dominance in selected industries to strengthen its position amid wider geopolitical and technological competition.
- Export controls can disrupt infrastructure projects and increase procurement costs.
- Western manufacturers may also depend on Chinese component supply chains, limiting alternative sourcing options.
- India’s dependence on a single country creates risks of project delays, cost overruns and strategic vulnerability.
- Similar risks may affect other critical sectors that rely on concentrated foreign supply chains.
Way Forward for India
- Promote domestic manufacturing of critical infrastructure equipment through phased capacity building.
- Develop international manufacturing partnerships that allow production, assembly, repair and technology access within India.
- Ensure secure licensing agreements, technology transfer where feasible and long-term demand for domestic manufacturers.
- Build shared facilities for testing, precision manufacturing and specialised component production instead of relying only on individual national champions.
- Diversify imports across countries such as Germany and Japan to reduce dependence on China.
- Balance strategic self-reliance, cost efficiency and infrastructure delivery to strengthen India’s long-term supply-chain resilience.
Conclusion
India must reduce excessive dependence on China without making infrastructure projects unnecessarily expensive. Domestic manufacturing, technology transfer and partnerships with established global firms can help build reliable production capacity. Shared testing facilities, skilled workers and secure licensing agreements are equally important. A balanced strategy combining local capabilities with diversified imports will improve infrastructure delivery, economic efficiency and national security amid growing geopolitical tensions.