India may tweak e-car manufacturing SOP scheme to woo global firms

Officials are evaluating changes to the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), which relies primarily on import duty concessions, including the introduction of more direct incentives, to entice global premium EV makers to establish manufacturing bases in India.

Canadian province’s premier David Eby, who is leading a trade mission to India from January 12-17, told ET in an interview that the province is trying to develop more opportunities with India to diversify trade, which has been hit by the US tariffs.

Buyers are intensifying factory audits and evaluations in hubs such as Tiruppur in Tamil Nadu, with plans to start or expand sourcing from India amid supply-chain uncertainties in Bangladesh and in anticipation of lower tariffs under the FTAs, said exporters.

India is strategically reorienting its partnerships towards the European Union as U.S. trade faces increasing tariffs. Germany’s Chancellor’s visit highlights this shift, with a potential EU free trade agreement and growing defense cooperation signaling a comprehensive, structural realignment in India’s foreign economic policy.

Europe takes center stage in Indian diplomacy this week. German Chancellor Friedrich Merz visits Monday, seeking trade expansion before the EU free trade agreement. France’s Emmanuel Bonne arrives Monday and Tuesday, preparing for President Macron’s February trip. Poland’s foreign minister Radosław Sikorski follows. Prime Minister Modi meets Merz in Ahmedabad to boost cooperation.

German Chancellor Friedrich Merz is in India to boost economic and security ties. This visit comes ahead of a planned EU-India free trade agreement. Discussions will cover trade, defense deals, and skilled labor recruitment. India seeks broader partnerships to reduce dependence on other nations. German companies see significant opportunities in India’s growing market.

India’s exports to European Union are showing strong growth. Spain is a standout market with significant export increases. Germany continues to be a stable destination for Indian products. Belgium and Poland also show positive export trends. These developments are occurring as India and the EU negotiate a free trade agreement, promising further bilateral trade growth.

India is aggressively seeking trade deals to open markets for exporters and soften the blow of steep US tariffs, as efforts to secure an agreement with Washington remain elusive. And while a free trade agreement (FTA) with New Zealand added little to Indian export growth, it secured $20 billion in foreign investment, increased visa access […]