'If China refuses tunnel boring machines, we'll make them in India': Piyush Goyal

'If China refuses tunnel boring machines, we'll make them in India': Piyush Goyal

China announced new export controls on tunnel boring machines and related equipment on October 19

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China's new tunnel boring machine export curbs: Piyush Goyal says India won't go 'begging'China's new tunnel boring machine export curbs: Piyush Goyal says India won't go 'begging'
Business Today Desk
  • Nov 3, 2026,
  • Updated Nov 3, 2026 4:36 PM IST

Commerce and Industry Minister Piyush Goyal on Tuesday said India would develop its own tunnel boring machines (TBMs) if China refused to supply them. He said India wanted to maintain good relations with China but would strengthen domestic manufacturing rather than depend on foreign suppliers.   "Regarding tunnel boring machines. India’s approach is different. Many other countries might bow down and enter into agreements in exchange for rare earths. We do not wish to spoil relations with anyone; even today, our relations with China remain good. If there are no other hurdles, our relationship will improve," Goyal said while speaking at the Young Leaders Discourse Forum at Kirori Mal College in Delhi. 

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"But if they refuse to provide tunnel boring machines, we will develop them ourselves in India. India is not one to bow down," he added.

Read More: 'We'll never allow GM products into India': Piyush Goyal draws red line amid US trade talks

China's new restrictions on tunnel boring machines

On October 19, China announced new export controls on tunnel boring machines and related equipment.

Under the rules, which take effect on November 18, 2026, exporters will be required to obtain licences for specified tunnelling equipment under China's export control framework for dual-use items.

The move has raised concerns over supplies of machines used in major infrastructure projects, including metro rail networks, railway tunnels and highways.

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The measures introduce export licensing requirements rather than an outright ban on all tunnel boring machine shipments.

Don't Miss: ‘China is no longer a reliable business…’: Expert on Beijing’s export controls on tunnel-boring machines and why it matters to India

'We did not go around begging' for rare earths

Goyal also referred to China's earlier restrictions on rare earth supplies, saying India had encouraged domestic startups to develop alternatives instead of relying on imports.

"When they restricted rare earths, we did not go around begging. We held a meeting with various startups in this field and encouraged them: why can't we develop motors without rare earths? Can we not build our own motors without relying on rare earths?"

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The minister said that some Indian startups had already developed motors that could operate without rare earth materials while maintaining comparable performance. "Some startups in India have begun innovating and have started producing motors without rare earths that offer equal quality and equal efficiency," Goyal said.

India already manufacturing 8-metre and 15-metre TBMs: Ashwini Vaishnaw

Days after China announced curbs, Railway Minister Ashwini Vaishnaw said India was developing a domestic ecosystem for tunnel boring machines.

Vaishnaw said India had previously depended entirely on imports but had begun manufacturing machines with diameters of 8 metres and 15 metres.

"Earlier, there was a time when all tunnel boring machines had to be imported. But now, all 8-metre diameter tunnel boring machines are being manufactured in India, and even 15-metre diameter machines have started being produced in the country," he said.

The minister also pointed to a TBM manufacturing facility in Tamil Nadu and plans to produce machines with diameters exceeding 16 metres.

"There is a TBM plant in Tamil Nadu, and very soon, tunnel boring machines with diameters exceeding 16 metres will also be manufactured in India," Vaishnaw said. "This means India is becoming self-reliant in tunnel boring machines, from design and manufacturing to maintenance."   

Commerce and Industry Minister Piyush Goyal on Tuesday said India would develop its own tunnel boring machines (TBMs) if China refused to supply them. He said India wanted to maintain good relations with China but would strengthen domestic manufacturing rather than depend on foreign suppliers.   "Regarding tunnel boring machines. India’s approach is different. Many other countries might bow down and enter into agreements in exchange for rare earths. We do not wish to spoil relations with anyone; even today, our relations with China remain good. If there are no other hurdles, our relationship will improve," Goyal said while speaking at the Young Leaders Discourse Forum at Kirori Mal College in Delhi. 

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"But if they refuse to provide tunnel boring machines, we will develop them ourselves in India. India is not one to bow down," he added.

Read More: 'We'll never allow GM products into India': Piyush Goyal draws red line amid US trade talks

China's new restrictions on tunnel boring machines

On October 19, China announced new export controls on tunnel boring machines and related equipment.

Under the rules, which take effect on November 18, 2026, exporters will be required to obtain licences for specified tunnelling equipment under China's export control framework for dual-use items.

The move has raised concerns over supplies of machines used in major infrastructure projects, including metro rail networks, railway tunnels and highways.

Advertisement

The measures introduce export licensing requirements rather than an outright ban on all tunnel boring machine shipments.

Don't Miss: ‘China is no longer a reliable business…’: Expert on Beijing’s export controls on tunnel-boring machines and why it matters to India

'We did not go around begging' for rare earths

Goyal also referred to China's earlier restrictions on rare earth supplies, saying India had encouraged domestic startups to develop alternatives instead of relying on imports.

"When they restricted rare earths, we did not go around begging. We held a meeting with various startups in this field and encouraged them: why can't we develop motors without rare earths? Can we not build our own motors without relying on rare earths?"

Advertisement

The minister said that some Indian startups had already developed motors that could operate without rare earth materials while maintaining comparable performance. "Some startups in India have begun innovating and have started producing motors without rare earths that offer equal quality and equal efficiency," Goyal said.

India already manufacturing 8-metre and 15-metre TBMs: Ashwini Vaishnaw

Days after China announced curbs, Railway Minister Ashwini Vaishnaw said India was developing a domestic ecosystem for tunnel boring machines.

Vaishnaw said India had previously depended entirely on imports but had begun manufacturing machines with diameters of 8 metres and 15 metres.

"Earlier, there was a time when all tunnel boring machines had to be imported. But now, all 8-metre diameter tunnel boring machines are being manufactured in India, and even 15-metre diameter machines have started being produced in the country," he said.

The minister also pointed to a TBM manufacturing facility in Tamil Nadu and plans to produce machines with diameters exceeding 16 metres.

"There is a TBM plant in Tamil Nadu, and very soon, tunnel boring machines with diameters exceeding 16 metres will also be manufactured in India," Vaishnaw said. "This means India is becoming self-reliant in tunnel boring machines, from design and manufacturing to maintenance."   

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