India’s Road Equipment Industry Seeks Stronger PLI Support for Critical Components

Ammann India says a stronger PLI framework could help localise critical road-equipment components such as precision hydraulic and engine parts.

New Delhi, September 22, 2026: India’s road-equipment industry is calling for stronger policy support to build more critical components locally, with manufacturers pointing to precision parts as a gap in the country’s localisation drive.

Ammann India Managing Director Dheeraj Panda said a stronger Production Linked Incentive (PLI) framework could help the sector move beyond assembly and strengthen domestic manufacturing of specialised components.

Precision components remain a challenge

According to Panda, areas such as precision hydraulic components and engine-related parts still have significant scope for localisation. The industry view is that targeted policy support could encourage more suppliers to invest in higher-value manufacturing and engineering.

The issue comes as India’s construction-equipment sector raises its focus on domestic sourcing while also looking to serve export markets with machines meeting newer emissions and performance requirements.

Road equipment demand remains linked to project execution

Panda also said long-term highway demand remains intact even though road construction activity had slowed in parts of 2024 and 2025. For equipment manufacturers, project execution and procurement timing remain important factors in translating the infrastructure pipeline into machine demand.

Why localisation matters

Greater local production of critical components can reduce dependence on imports and strengthen the supplier base around road-building equipment. It can also help Indian manufacturers build more control over lead times, engineering and after-sales support.

For Equipment Brief, the issue is less about adding another policy announcement and more about whether India can deepen the component ecosystem needed to support the next phase of construction-equipment manufacturing.

Equipment Brief tracks developments shaping India’s construction-equipment manufacturing ecosystem.

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Equipment Brief is an independent industry publication focused on construction equipment, heavy machinery, technology, manufacturers, projects and market developments. We bring the latest equipment news, machine launches, industry insights and analysis for professionals across the equipment and construction sector.
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