# Machinery and equipment: Chokepoints and risks

Machine tools, construction and mining equipment, tractors, pumps and process plant

Source page: https://www.materialinsights.org/industries/machinery/risks/

#### Chokepoints and risks

- China produced about EUR 1.13 trillion of machinery in 2024, more than the US, Germany and Japan combined, putting price pressure on everyone else^[1](https://www.produktion.de/wirtschaft/maschinenbau-die-10-wichtigsten-laender-nach-umsatz/1917525).
- China made 94% of sintered rare-earth magnets in 2024 and has required export licences since April 2025, with wider controls announced in October 2025, threatening servo motors and drives^[2](https://iea.org/reports/rare-earth-elements/executive-summary).
- High-end CNC controllers, precision bearings and hydraulics come from a few non-Indian firms, which caps local value addition.
- Demand is highly cyclical, tracking construction, mining and farm incomes, and credit conditions.
- Export controls on advanced machine tools and dual-use equipment can block both sales and supplies.

## Other sections

- [Overview](https://www.materialinsights.org/industries/machinery/index.md)
- [Where ₹100 goes](https://www.materialinsights.org/industries/machinery/cost-mix/index.md)
- [Price links with suppliers](https://www.materialinsights.org/industries/machinery/price-links/index.md)
- [Example story](https://www.materialinsights.org/industries/machinery/story/index.md)
- [Linked industries](https://www.materialinsights.org/industries/machinery/linked-industries/index.md)
- [Value chain](https://www.materialinsights.org/industries/machinery/value-chain/index.md)
- [Materials drawn on](https://www.materialinsights.org/industries/machinery/materials/index.md)
- [Sources](https://www.materialinsights.org/industries/machinery/sources/index.md)