Trump's auto tariff relief for Canada, Mexico leaves Indian component exporters in limbo (The Indian Express)
The US has announced a 25% tariff on automobile imports starting May 3, 2025, but with partial relief for vehicles built with high US or USMCA content, including an offset equal to 3.75% of MSRP for the first year and 2.5% for the second, effectively favouring Canada and Mexico over countries like India. Indian auto component exports to the US, valued at $7 billion in FY24 and forming 27% of total auto component exports, may be hit hard, with Crisil estimating a compression of operating margins by 125–150 basis points due to these tariffs. While the US auto market remains a major opportunity, with Americans buying 16 million vehicles in 2024 and only 25% of content being truly domestic, the new policy may limit India’s gains unless supported by a bilateral trade agreement.
US, UK, Canada Quiz India's SPECS Scheme, Sops at WTO (The Economic Times)
At the WTO, the US, UK, and Canada questioned India’s Make in India initiative and its subsidy schemes like SPECS, PM-Kisan Sampada, and the PMFME Scheme, seeking details on subsidy amounts, eligibility criteria, and compliance with WTO rules. Specific concerns included why major programmes like the Production-Linked Incentive and Design-Linked Incentive schemes were omitted from India’s subsidy notification, and whether state-level policies in Karnataka, Gujarat, and Andhra Pradesh fall under notifiable subsidies. India responded partially, stating that product eligibility varies and further details, such as on fisheries subsidies, will be provided in due course.
₹22,864cr Meghalaya-Assam Highway Gets Green Signal (The Economic Times)
The Cabinet Committee on Economic Affairs approved a Rs 22,864 crore, 166.8-km greenfield high-speed highway between Meghalaya and Assam, with 144.8 km in Meghalaya and 22 km in Assam, to be completed in 3 years and maintained for 15 years under the hybrid annuity model. The project, with a civil cost of Rs 12,087 crore and land acquisition cost of Rs 3,503 crore, aims to boost connectivity to Tripura, Mizoram, Manipur, and the Barak Valley, reduce travel time, and support economic development in cement and coal-producing regions of Meghalaya. With an estimated daily traffic of 19,000–20,000 PCUs in 2024–25, the corridor will integrate with NH-27, NH-106, NH-206, and NH-37, enhancing logistics efficiency and regional accessibility.
