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Govt plans incentive scheme to buoy auto part exports
Mint New Delhi
|July 16, 2025
Trump's import tariffs have thrown Indian auto component makers into a fog of uncertainty
The government has started working on an incentive scheme to boost exports for India's $111-billion automotive components industry amid trade uncertainties unleashed by US President Donald Trump's steep import tariffs, three people aware of the development said.
As part of the scheme, the government might consider incentivizing manufacturing of specific auto parts that are exported the most, such as engine components. Moreover, specific export-oriented fiscal sops might also be introduced. The discussion is in initial stages and nothing is finalized about the scheme yet, the people cited earlier said on the condition of anonymity.
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