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Hindustan Times
06-07-2025
- Automotive
- Hindustan Times
Changing the goods transport paradigm with autorickshaws
As India's cities grow more digital and delivery-driven, the pressure on urban logistics is steadily rising. Yet navigating India's dense, informal, and congested urban fabric requires a kind of fleet that is both agile and affordable. Passenger autorickshaws may be considered here. Many autos are underutilised for much of the day, operating mainly during peak hours. Drivers, often earning inconsistent incomes, use off-peak hours to carry small parcels in informal arrangements. The vehicle is there. The demand is there. What is missing is the regulation of the service through a transparent policy guideline. Many autos are underutilised for much of the day, operating mainly during peak hours. Drivers, often earning inconsistent incomes, use off-peak hours to carry small parcels in informal arrangements (Parwaz Khan /HT PHOTO) Currently, most passenger autos operate under contract carriage permits that prohibit the transportation of goods. The Motor Vehicles Act includes an exemption for vehicles under 3,000 kg from needing a separate goods permit. However, this clause is interpreted and implemented inconsistently across states. While some allow dual use under defined conditions, others require prior approvals or offer no guidance at all. The result is a regulatory grey zone where informal practice outpaces formal policy. According to urban freight studies from the Centre for Digital Economy Policy Research at IIT Delhi and the World Resources Institute (WRI), dual use could raise utilisation by 30-50% and increase monthly driver income by ₹3,000-5,000. For small merchants, access to nearby, affordable delivery options could lower logistics costs and expand their service reach. A 2023 WRI study found that using passenger autorickshaws for small goods delivery costs nearly 50% less than using dedicated three-wheeler cargo vehicles. Even if just 10% of India's estimated $40 billion urban and last-mile logistics market loads could be shifted to autorickshaws, the potential savings could exceed $2 billion annually. These savings would be shared across drivers, merchants, platforms, and of course, the end-users. Currently, there is a structural gap in the vehicle ecosystem. Loads under 20 kg are typically handled by two-wheelers or informal foot delivery. Freight over 300 kg moves through standard goods carriers. But many small businesses operate in the middle, dealing with 20 to 300 kg per trip. Without a flexible and cost-effective option, they often resort to paying for cargo vehicles that are oversized for their needs. Autorickshaws could fill this gap seamlessly. By law, passengers are allowed to carry up to 50 kg of luggage in an autorickshaw. If it is considered safe to carry that weight along with a passenger, it is entirely reasonable to allow the same payload when the vehicle is operating alone on a goods-only trip. Some states have begun to act. In Kerala, the Motor Vehicle Rules permit dual use under basic safety and cleanliness conditions. Gujarat, Tamil Nadu, Uttar Pradesh, Punjab, Andhra Pradesh, and Chandigarh follow similar principles. Their rules do not explicitly prohibit carrying goods, so long as the cargo is non-hazardous, hygienic, and does not cause discomfort. Tamil Nadu even outlines the responsibilities of drivers toward both passengers and goods consignors. Other states are more restrictive. Maharashtra, Madhya Pradesh, and Rajasthan require prior approval from regional transport authorities. These permissions often include conditions on types of goods and zones of operation. While these rules are grounded in safety and planning concerns, the lack of a unified framework has hindered wider adoption and scale. The ministry of road transport and highways, working with state departments, could issue a model rule clarifying the application of the national exemption for light vehicles. This could include guidelines on permissible weight and size limits, hours of operation, hygiene and safety standards, restricted goods categories, and simple registration processes. This would give states a shared baseline to adapt to local conditions. Drivers would have a legally sanctioned way to diversify earnings. Platforms could on-board local fleets for structured delivery services. Small businesses would gain a cost-effective logistics option. Urban authorities could reduce redundant trips and better manage traffic flows. It would bring into the formal economy a widespread but unrecognised practice. There are environmental advantages, too. Light commercial vehicles contribute disproportionately to urban air pollution. Dual use of autos in circulation could cut emissions by reducing separate freight trips, more so with the growing adoption of electric autos. Concerns around safety or enforcement are valid but manageable. Bringing informal delivery practices into the formal fold allows authorities to set standards, offer oversight, and partner with platforms to track compliance. Some practical considerations will require attention. Public access to passenger services should not be compromised, particularly during peak hours or in high-demand zones. Light-touch measures such as visible markings for dual-use vehicles, periodic fitness checks, and optional insurance schemes for participating drivers may help build trust. The focus must stay on unlocking the underutilised potential of autorickshaws for short-haul delivery, not overloading the model with standards that cities are not yet equipped to enforce. Jagadish Shettigar is a former member, Prime Minister's Economic Advisory Council. The views expressed are personal
Time of India
24-05-2025
- Business
- Time of India
Tariff? Long arm of Trump law may not pluck Apple off India
US President Donald Trump on Friday threatened to impose 'at least' 25% tariff on iPhones sold in the country unless they are made in America, and 'not in India, or anyplace else'. The development, which came a week after he said he had told Apple CEO Tim Cook not to build in India, could dampen the fast-paced growth of India's electronics manufacturing services, said experts. Apple shares plunged more than 4% to a low of $193.46 on the Nasdaq after Trump's statement. 'I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a tariff of at least 25% must be paid by Apple to the US,' Trump said in a post on Truth Social. The move, if implemented, would hit the Cupertino-based firm, which has been seeking to diversify its production base beyond China, as well as India's electronics manufacturing services ecosystem, which has been supporting not only phone manufacturers but also hundreds of ancillary and downstream component makers beginning to set up shop in the country, according to experts. Shifting Apple's manufacturing to the US would not be a feasible solution, though, they said, since that would increase the cost of the iPhone to $3,000 on average from the current price of around $1000 owing to the high cost of labour in the US. Most of the iPhones sold in the US currently are made in India. Apple's assembly lines in India churned out smartphones worth $22 billion in 2024-25, with a 60% year-on-year increase in output. Some experts also said that Trump's statement appeared to be a negotiation tactic to secure a more favourable trade deal with India. 'Trump's posturing of a potential 25% tariff on 'Made in India' Apple phones will certainly be a dampener on Apple's India plans,' said Jaijit Bhattacharya, president, Centre for Digital Economy Policy Research. 'It brings in regulatory uncertainty for Apple, which in itself is extremely detrimental. Apple was signalled to move out of China into trusted supply chain locations such as India. As it started ramping up in India, conflicting signals have emerged from the US administration.' He said the outcome would be significant uncertainty for Apple, impacting the company's ability to build a resilient supply chain and serve the market. Anurag Agrawal, founder of Techaisle, said, 'Trump's past actions indicate a willingness to impose tariffs to push for domestic production, and his recent comments suggest he is not pleased with Apple's move to diversify manufacturing to India. Therefore, some form of targeted tariffs remains a possibility. While Trump can impose tariffs, previous threats have often been used as negotiating tactics, and exemptions for electronics (including iPhones) have been granted before.' A section of industry executives, however, said the US administration's move to slap tariffs on Apple would not halt India's strides in electronics manufacturing services. "India is primarily involved in assembly and even within that India's piece of the pie is under $40,' said Raja Manickam, founder of the fabless chip startup iVP Semiconductor and the former CEO of Tata Electronics. 'Finally, I do see that sense will prevail and that Apple will reason with the US government that at least 50% or more of their value addition comes in from chips, IP and software by American companies.' ET's queries sent to Apple remained unanswered till press time. "The notion of Apple moving iPhone assembly to the US is less a concrete strategy and more of a negotiating tool, especially in the context of US-India trade dynamics," Sanyam Chaurasia, technology market analyst at Canalys Research said. "Realistically, even if Apple were to shift assembly stateside, it would take several years and involve significant cost implications." He said Trump appears to be using Apple as a 'bargaining chip' in tariff negotiations with India. "It's more a political gesture than a realistic plan. I expect to see more of this as pressure builds to secure favorable terms in the bilateral trade agreement," he said. Apple has increasingly chosen India as an alternative to China, where it has massive operations, especially after the Covid-19 pandemic, realising that over-reliance on a single production base could put its supply chain in jeopardy. In line with growing demand, the company's suppliers such as Foxconn and Tata Electronics have been expanding their India manufacturing footprint.
Economic Times
24-05-2025
- Business
- Economic Times
Tariff? Long arm of Trump law may not pluck Apple off India
US President Donald Trump on Friday threatened to impose 'at least' 25% tariff on iPhones sold in the country unless they are made in America, and 'not in India, or anyplace else'. The development, which came a week after he said he had told Apple CEO Tim Cook not to build in India, could dampen the fast-paced growth of India's electronics manufacturing services, said experts. Apple shares plunged more than 4% to a low of $193.46 on the Nasdaq after Trump's statement. 'I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a tariff of at least 25% must be paid by Apple to the US,' Trump said in a post on Truth move, if implemented, would hit the Cupertino-based firm, which has been seeking to diversify its production base beyond China, as well as India's electronics manufacturing services ecosystem, which has been supporting not only phone manufacturers but also hundreds of ancillary and downstream component makers beginning to set up shop in the country, according to experts. Shifting Apple's manufacturing to the US would not be a feasible solution, though, they said, since that would increase the cost of the iPhone to $3,000 on average from the current price of around $1000 owing to the high cost of labour in the US. Most of the iPhones sold in the US currently are made in India. Apple's assembly lines in India churned out smartphones worth $22 billion in 2024-25, with a 60% year-on-year increase in output. Some experts also said that Trump's statement appeared to be a negotiation tactic to secure a more favourable trade deal with India.'Trump's posturing of a potential 25% tariff on 'Made in India' Apple phones will certainly be a dampener on Apple's India plans,' said Jaijit Bhattacharya, president, Centre for Digital Economy Policy Research. 'It brings in regulatory uncertainty for Apple, which in itself is extremely detrimental. Apple was signalled to move out of China into trusted supply chain locations such as India. As it started ramping up in India, conflicting signals have emerged from the US administration.'He said the outcome would be significant uncertainty for Apple, impacting the company's ability to build a resilient supply chain and serve the Agrawal, founder of Techaisle, said, 'Trump's past actions indicate a willingness to impose tariffs to push for domestic production, and his recent comments suggest he is not pleased with Apple's move to diversify manufacturing to India. Therefore, some form of targeted tariffs remains a possibility. While Trump can impose tariffs, previous threats have often been used as negotiating tactics, and exemptions for electronics (including iPhones) have been granted before.'A section of industry executives, however, said the US administration's move to slap tariffs on Apple would not halt India's strides in electronics manufacturing services."India is primarily involved in assembly and even within that India's piece of the pie is under $40,' said Raja Manickam, founder of the fabless chip startup iVP Semiconductor and the former CEO of Tata Electronics. 'Finally, I do see that sense will prevail and that Apple will reason with the US government that at least 50% or more of their value addition comes in from chips, IP and software by American companies.'ET's queries sent to Apple remained unanswered till press time."The notion of Apple moving iPhone assembly to the US is less a concrete strategy and more of a negotiating tool, especially in the context of US-India trade dynamics," Sanyam Chaurasia, technology market analyst at Canalys Research said. "Realistically, even if Apple were to shift assembly stateside, it would take several years and involve significant cost implications." He said Trump appears to be using Apple as a 'bargaining chip' in tariff negotiations with India. "It's more a political gesture than a realistic plan. I expect to see more of this as pressure builds to secure favorable terms in the bilateral trade agreement," he said. Apple has increasingly chosen India as an alternative to China, where it has massive operations, especially after the Covid-19 pandemic, realising that over-reliance on a single production base could put its supply chain in jeopardy. In line with growing demand, the company's suppliers such as Foxconn and Tata Electronics have been expanding their India manufacturing footprint.
