On July 16, the Ministry of Power issued a draft notification proposing new Corporate Average Fuel Economy norms, called CAFE 2027, for M1 category passenger vehicles, effective 1 April 2027 under the Energy Conservation Act, 2001. The draft is open for objections and suggestions for 21 days. The norms apply to M1 ve
On July 15, the Union Cabinet of India approved Semicon 2.0 with a budget outlay of INR 1,275 billion. Semicon 2.0 is structured around six areas: design, machines and materials, fabrication plants, ATMP/OSAT units, R&D, and talent development. On design, the government plans to build on work by 105 startups already
On July 15, the Ministry of Mines launched the eighth tranche of auctions for critical and strategic mineral blocks, offering 20 blocks across nine states as part of India’s push to secure key resources for clean energy and advanced manufacturing. The new tranche includes 13 newly identified blocks and seven blocks r
On July 6, the Ministry of Power, India, issued a draft notification proposing a formal credit‑and‑debit framework under India’s fuel consumption (CAFE) norms for passenger vehicles and invited public comments before finalising the rules. The draft defines credits for manufacturers whose corporate average fuel consum
On July 4, The Automotive Research Association of India (ARAI) held a press conference in Pune to address technical aspects of E20 ethanol-blended fuel adoption in India. ARAI Director stated that all E20-compatible vehicles undergo durability, performance, and reliability testing spanning 40,000 to 60,000 kilometres
On July 4, the Government of India held a press conference to address the concerns raised by vehicle owners and on social media regarding E20's impact on mileage, engine compatibility and warranty validity. Industry representatives from Maruti Suzuki, Toyota Kirloskar Motor and Hero MotoCorp cited service data showin
On June 17, the Ministry of Road Transport and Highways published draft amendments to the Central Motor Vehicles Rules, 1989, proposing mandatory cybersecurity and software update compliance requirements for vehicles sold in India. The draft introduces two new rules: Rule 125-T, covering Cyber Security and Cyber Secu
On June 25, the Ministry of Heavy Industries announced that it has extended the bid submission deadline for the global tender under the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets, from June 29 to July 29, 2026, with technical bid opening rescheduled from June 30 to July 30. The extension
On June 23, Daimler India Commercial Vehicles (Bharat Benz) became the latest OEM to sign an MoU with the Ministry of Road Transport and Highways under the government's scheme for the replacement of old trucks and buses in Delhi-NCR, bringing the total number of participating manufacturers to six. Mahindra and SML Ma
On June 17, the Government of the UK, Department for Business and Trade, announced that the UK-India Free Trade Agreement will enter into force on July 15, 2026, making it the fastest implementation of any trade deal. The agreement is projected to boost UK GDP by GBP 4.8 billion, real wages by GBP 2.2 billion, and bi
On June 18, Tata Motors signed an MoU with the Ministry of Road Transport and Highways to join the government's scheme for the replacement of old trucks and buses in Delhi-NCR, offering an 8% discount on ex-showroom prices of eligible vehicles. For EVs, the discount is capped at the equivalent applicable to an ICE ve
On June 15, the Ministry of Road Transport & Highways signed an MoU with Ashok Leyland and its subsidiary Switch Mobility, making them the first OEMs to provide discounts under the government's scheme for the replacement of old trucks and buses in Delhi-NCR.
Under the agreement, both companies will offer an 8% disco
On June 10, the Department of Revenue, Central Board of Indirect Taxes and Customs, issued a notification regarding excise duty exemption to gasoline blended with higher levels of ethanol. It covers four ethanol-blended gasoline grades.
E22 ethanol-blended gasoline consists of 78% gasoline and 22% ethanol
E25 ethanol
On June 5, the Ministry of Petroleum & Natural Gas launched E85 fuel, comprising 80-85% ethanol and 14-19% petrol across 48 public sector OMC retail outlets, with a rollout target of 500 outlets by December 2026 and 5,000 outlets by December 2027. E85 is priced approximately INR 20 per liter below conventional gasoli
On June 2, Larsen and Toubro signed an MoU with the Tamil Nadu government, committing INR 186 billion across three projects to create 8,200 jobs. The electronics manufacturing hub in Coimbatore, worth INR 25 billion and targeting 2,000 jobs, is positioned to serve both the electronics and automotive sectors.
The rem
On June 3, the Union Cabinet approved a two-year scheme with a total outlay of INR 95.85 billion, out of which INR 50.41 billion is from the Centre and an estimated INR 16.01 billion in state tax concessions to replace BS-IV and older trucks and buses in Delhi-NCR with BS-VI or EV alternatives. The scheme, funded thr
On June 1, Haryana Chief Minister Nayab Singh Saini launched the Make in Haryana Industrial Policy, targeting INR 5 trillion in investments, with MoUs worth INR 1.1 trillion signed on the first day. The state simultaneously unveiled nine sector-specific industrial policies and an Intelligent Investment Facilitation P
On June 1, the India-Oman Comprehensive Economic Partnership Agreement (CEPA), which entered into force, eliminates the 5% MFN tariff on motor vehicles and all engineering goods, giving Indian automotive exporters immediate zero-duty access to Oman's import market.
India's engineering exports to Oman -- which includ
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