Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Monday, January 27, 2025. This is Nelson John, let's get started.

US President Donald Trump's "Make in America" initiative aims to revitalize American manufacturing by encouraging companies to establish operations in the US or face higher tariffs on exports. Trump proposes incentives like a low 15% corporate tax rate for domestic manufacturing. This move challenges the existing global manufacturing hubs in Asia, like China and Vietnam, known for their lower costs and extensive supply chains. The impact of Trump's policy could be significant, as it encourages high-tech and sophisticated manufacturing to return to the US. For India, this is a wake-up call to enhance its manufacturing competitiveness. Key issues include outdated technology, high logistics costs, and regulatory complexities. Despite the government's efforts through policies like the productivity-linked incentive scheme, progress is slow. India's investment in R&D is also minimal compared to global standards, affecting innovation. Shelley Singh writes about how Trump’s “Make in America” approach will impact India.

Indian-American businessman Digvijay Danny Gaekwad's bid to acquire a significant stake in Religare Enterprises for ₹5,000 crore might hit a regulatory snag. Anirudh Laskar reports that Gaekwad's offer, priced at ₹275 per share, is more competitive than the Burman family's offer of ₹235 per share but could violate SEBI's takeover norms due to its timing and the size of the stake sought. SEBI’s rules also require a counteroffer to involve more shares than the initial bid. Moreover, there are concerns about the conditions attached to Gaekwad’s offer and the clarity around his funding sources. The battle for control is really about Religare’s profitable health insurance arm, Care Health Insurance. Religare’s chair, Rashmi Saluja, has been resisting the Burmans' attempts to take over the company since the Dabur owners first showed interest in the financial services company in September 2023. Now, with Gaekwad's sudden move, things might get even more tangled.

India plans to tighten enforcement on third-party vehicle insurance by linking it to everyday vehicle-related activities. The Union finance ministry is considering measures such as mandatory insurance checks when buying fuel, obtaining FASTags, or renewing driving licenses and pollution control certificates, Subhash Narayan reports. This push comes amid concerns that over half of the vehicles on Indian roads lack third-party insurance, despite the legal requirement under the Motor Vehicles Act, 1988, which mandates such coverage and prescribes severe penalties for non-compliance. The proposed changes, which are still being finalized, aim to ensure that more vehicles are insured by integrating insurance checks with regular vehicle-related transactions.

Motilal Oswal Group is considering selling its housing finance arm, Motilal Oswal Home Finance, which began as Aspire Home Finance Corp in 2014. Currently, the group holds a 97.49% stake in the subsidiary, which has a loan book of Rs 4,098 crore. Shayan Ghosh reports that industry valuations suggest the unit could be worth between Rs 3,612 crore to Rs 5,031 crore, based on its March-end net worth of Rs 1,290 crore. Despite initial asset quality issues, with gross non-performing assets peaking at 9.2% in FY19, the situation has improved significantly, with a gross NPA ratio of 0.86% as of March 2024.

The Union budget for FY26 is likely to significantly boost funding for R&D of high-yield hybrid seeds for essential crops like pulses, edible oils, and cotton, to address shortages and reduce import dependency. This move aims to develop climate-resilient seed varieties to increase productivity and improve farmers' incomes. The planned increase in budget allocation reflects a broader effort to improve agricultural outputs amid challenges such as climate change. For instance, cotton imports are expected to rise by 42% this financial year due to falling exports and domestic production issues. Currently, funding for agricultural education is set to rise by 8% in FY25, emphasizing the government's focus on enhancing agricultural capabilities through education and research. Additionally, the government has initiated the release of 109 high-yield crop varieties, expected to reach farmers in three years.