Gadkari sees ₹7-8 lakh crore tunnel investment opportunity, urges local manufacturing

Union Road Transport and Highways Minister Nitin Gadkari on Tuesday urged Indian industries to manufacture tunnel boring machines and other tunnelling equipment domestically, citing plans to invest ₹7 lakh crore to ₹8 lakh crore in tunnel development over the next five years.

Speaking at the Confederation of Indian Industry’s (CII) National Conference on ‘Highways of India’s Future: Smart, Safe and Sustainable’ in New Delhi, Gadkari said the scale of planned infrastructure development presented an opportunity for domestic manufacturers to meet rising demand for specialised machinery.

The proposed investments are expected to support tunnel construction across sectors, including metro rail systems, hydropower and other infrastructure projects.

Domestic manufacturing push

Gadkari’s pitch comes as India expands its road and tunnel infrastructure, with specialised construction equipment becoming an important requirement for projects in difficult terrain.

Developing domestic manufacturing capabilities could help the industry cater to demand from upcoming projects, while reducing dependence on imported equipment. Despite rising localisation, India continues to import around $4 billion worth of mining and construction equipment and components annually, with domestic localisation levels at about 50%, according to a July 2026 report by CII and Boston Consulting Group (BCG).

Road projects to boost connectivity

Gadkari also mentioned the impact of road development on travel time, tourism and employment. He said the Delhi-Dehradun corridor had reduced travel time between the two cities from around seven hours to two hours.

He added that a new road project expected to open shortly would further improve connectivity between Delhi and Haridwar. Traffic to religious destinations in Uttarakhand had increased threefold as work on the Char Dham road project progressed, he said, adding that 80-85% of the project had been completed.

The minister also cited the economic benefits of infrastructure spending, saying every ₹100 spent on infrastructure could generate an economic impact of ₹325. Road construction creates jobs and generates demand for materials such as cement and steel, while improved connectivity can lower transport costs and support industry and tourism, he said.

Gadkari said the Delhi-Mumbai Expressway would also connect rural, aspirational and tribal districts with major economic centres, helping extend the benefits of infrastructure development beyond large cities.