The investment centres on the company’s plant in Ballabgarh, near New Delhi, where JCB India manufactures backhoe loaders.

JCB chief operating officer Matthew Taylor said: “India is developing at a very fast pace with huge investments in infrastructure. As a result, JCB’s business in India continues to go from strength to strength and the expansion at Ballabgarh will allow us to meet the growing demand for our machines in the coming years.”

JCB first began manufacturing in India, at the Ballabgarh site, in 1979 under a joint venture agreement. In 2003 JCB India became a wholly owned subsidiary of JCB and today the company is the number one manufacturer of construction equipment in India, with over 50 per cent market share. The company employs about 1,400 people in India, including around 850 at the Ballabgarh plant and has 42 dealers with 264 outlets in the country.

The Ballabgarh plant is one of three JCB factories in India, with two others in Pune, near Mumbai.