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Govt weighs R&D funds for auto-component exporters

Mint Hyderabad

|

August 26, 2025

The steps are being taken as the 50% tariffs proposed by Trump are set to take effect on 27 Aug

- Manas Pimpalkhare & Ayaan Kartik

The government is considering ways to provide funds for research and development (R&D) and intellectual property creation to support Indian exporters of auto components as they face the headwinds of US tariffs, according to two people aware of the development.

The plan may include a component to support R&D for Indian auto parts makers using funds from the Anusandhan National Research Foundation (ANRF) under the Department of Science and Technology, one person said, requesting anonymity. Funds may also be provided for intellectual property rights and transfers, for which the heavy industries ministry is in talks with the commerce ministry, the person said.

"The ministry of heavy industries is in discussions with many other government bodies and with the industry for the scheme. The goal is to create an ecosystem, a full package covering all aspects for auto component manufacturers," the second person said, requesting anonymity.

Both people said stakeholder consultations are under way and no amount has been decided for the scheme yet.

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