Daily News - Monday, 7 April 2025
Govt rushes to find demand for e-trucks (mint)
The ₹500 crore PM E-Drive scheme for e-trucks, set to end in FY26, has seen no progress in its first year, with zero incentives disbursed so far and pending localization norms (Phased Manufacturing Programme), despite a growing market where 6,158 electric goods carriers were sold in 2024, up from 2,603 in 2023. In response, the Ministry of Heavy Industries has now targeted high-demand sectors—ports, steel, cement, and logistics—to drive adoption of e-trucks, especially as Chinese manufacturer BYD dominated the heavy goods segment with over 36% share in 2024 (82 of 224 units) and 82% in 2023 (268 of 326 units). The ₹10,900 crore PM E-Drive scheme, halfway through its term in FY25, is the government’s third EV subsidy initiative and the first to include commercial sectors like trucking, but delays in policy notifications and compliance frameworks continue to stall its impact.
Countries soften stance on non-trade issues with India (Financial Express)
Amid global trade disruptions triggered by US tariff policies under President Trump, several developed countries have softened their stance on non-trade issues like sustainability in Free Trade Agreement (FTA) talks with India, aiming for faster deals focused on core trade concerns. This shift could help India mitigate the impact of additional US tariffs—particularly significant as the US accounts for 18% of India’s goods exports—and strengthen India’s position in global supply chains through key FTAs with the UK and EU, which are currently under negotiation (the EU deal aiming for conclusion this year). Experts also suggest allowing the rupee to find its real value with less central bank intervention to enhance export competitiveness, especially as traditional FTA chapters now increasingly include non-trade issues like climate change, SMEs, and competition, with India-UK and India-EU FTAs covering 26 and 23 chapters respectively.
Healthcare costs to rise at 13% in 2025, likely to beat global average (Financial Express)
Healthcare costs in India are expected to rise by 13% in 2025—higher than the global average of 10% and above the 12% increase recorded in 2024—driven by increased hospitalisation, advanced treatments, and a growing disease burden, including cardiovascular conditions and cancer. Aon’s Global Medical Trend Rates Report 2025 highlights key inflationary factors such as a shortage of quality infrastructure, skilled professionals, rising use of costly biologics, and higher insurance premiums due to escalating claims. In response, Indian employers are adopting strategies like customizable health plans, wellness programs, and partnerships with cost-efficient providers to manage employee healthcare access while containing costs.
Exporters plan to ship via nations with basic tariffs (Financial Chronicle)
Indian exporters in sectors like gems and jewellery, textiles, and food products are planning to reroute shipments to the US through countries with lower tariff regimes such as the UAE, GCC nations, Mexico, and parts of Africa, leveraging existing manufacturing units and India’s FTA with the UAE to minimize US duties. However, these indirect exports face challenges under the US’s Rule of Origin laws, which require 40–50% regional value content to qualify for preferential treatment, posing verification burdens on US customs. Simultaneously, exporters are eyeing e-commerce as a duty-free route for goods under $800, a model successfully used by Chinese firms like Shein to penetrate the US market.
India unlikely to retaliate in hurry against US tariffs (Financial Chronicle)
In response to President Donald Trump’s recent imposition of a 26% tariff on Indian imports, India has chosen not to retaliate but instead focus on negotiating a balanced and equitable bilateral trade deal with the US, aiming for a resolution by fall 2025, according to a government official. The Indian government, which has already made trade and immigration concessions, is engaging exporters for support and remains open to negotiations covering both goods and services to reduce the blow to a slowing economy. Unlike China, which retaliated with a 34% tariff on US goods, India’s measured approach and first-mover advantage helped its markets, such as the Nifty-50, perform better than most Asian peers despite the global trade turbulence.
