India US Trade Deal Boosts Auto Component Competitiveness
ECONOMY & POLICY

India US Trade Deal Boosts Auto Component Competitiveness

The Automotive Component Manufacturers Association of India (ACMA) described the India US trade agreement as a positive development that will enhance the competitiveness of Indian automotive components in the United States market.

ACMA thanked the Prime Minister and the Commerce Minister for securing the agreement, noting that it reflects a strengthening strategic and economic partnership between the two democracies. The association said a proposed reduction in reciprocal tariffs to 18 per cent will improve market access and pricing dynamics for exporters.\n\nAt a time of structural realignment in global supply chains, the body suggested the agreement provides greater predictability and confidence for long term trade and investment decisions.

It said a more balanced and facilitative framework could unlock further growth in bilateral trade and deepen industrial collaboration. ACMA indicated that the deal may encourage technology led partnerships across advanced manufacturing, electrification, electronics and clean mobility solutions.\n\nIndia's auto components exports to the United States stood at USD 3,124 million in the first half of the current financial year, while United States exports to India were USD 844 million over the same period.

In the fiscal year 2025 the combined turnover of the domestic auto component industry reached USD 80.2 billion, with USD 22.9 billion in exports and a trade surplus of USD 500 million. The association emphasised the need for closer engagement with policymakers on both sides to translate the agreement into tangible outcomes for industry and to support resilient supply chains.\n\nIndustry representatives said adoption of the agreement could encourage investment in product development and quality enhancement that align with evolving regulations and customer preferences in the United States.

They highlighted potential gains in areas such as electric vehicle components and electronics where Indian manufacturers have begun to scale capabilities. ACMA underlined that sustained policy dialogue and targeted incentives will be important to convert the diplomatic achievement into manufacturing growth and export competitiveness.

The Automotive Component Manufacturers Association of India (ACMA) described the India US trade agreement as a positive development that will enhance the competitiveness of Indian automotive components in the United States market. ACMA thanked the Prime Minister and the Commerce Minister for securing the agreement, noting that it reflects a strengthening strategic and economic partnership between the two democracies. The association said a proposed reduction in reciprocal tariffs to 18 per cent will improve market access and pricing dynamics for exporters.\n\nAt a time of structural realignment in global supply chains, the body suggested the agreement provides greater predictability and confidence for long term trade and investment decisions. It said a more balanced and facilitative framework could unlock further growth in bilateral trade and deepen industrial collaboration. ACMA indicated that the deal may encourage technology led partnerships across advanced manufacturing, electrification, electronics and clean mobility solutions.\n\nIndia's auto components exports to the United States stood at USD 3,124 million in the first half of the current financial year, while United States exports to India were USD 844 million over the same period. In the fiscal year 2025 the combined turnover of the domestic auto component industry reached USD 80.2 billion, with USD 22.9 billion in exports and a trade surplus of USD 500 million. The association emphasised the need for closer engagement with policymakers on both sides to translate the agreement into tangible outcomes for industry and to support resilient supply chains.\n\nIndustry representatives said adoption of the agreement could encourage investment in product development and quality enhancement that align with evolving regulations and customer preferences in the United States. They highlighted potential gains in areas such as electric vehicle components and electronics where Indian manufacturers have begun to scale capabilities. ACMA underlined that sustained policy dialogue and targeted incentives will be important to convert the diplomatic achievement into manufacturing growth and export competitiveness.

Next Story
Infrastructure Transport

Chembur Metro to Boost East Mumbai Links

MMRDA is advancing eastern Mumbai’s urban mobility network, with the upcoming Chembur Metro Station set to emerge as a key interchange and the Mumbai Monorail preparing for relaunch.Dr Sanjay Mukherjee, Metropolitan Commissioner, MMRDA, conducted a site visit to Chembur Metro Station along with Kanhuraj Bagate, Managing Director, MMMOCL. He also visited the nearby VN Purav Monorail Station to review system preparedness and ease of interconnectivity.Once operational, the interchange is expected to offer commuters across the eastern suburbs quicker access, smoother transfers and seamless conne..

Next Story
Equipment

Herrenknecht TBMs Drive Thane–Borivali Tunnel Progress

Herrenknecht India has supplied two of the four tunnel boring machines (TBMs) required for the 11-km Thane–Borivali Twin Tunnel Project being developed by the Mumbai Metropolitan Region Development Authority (MMRDA). The project is expected to reduce travel time between Thane and Borivali from 60–90 minutes to around 15 minutes while easing congestion across the Mumbai Metropolitan Region.The first two Single Shield TBMs, named Nayak and Arjuna, feature 13.34-m cutterhead diameters and are designed for hard-rock excavation. They will be deployed to tunnel through the challenging geological..

Next Story
Resources

KBL Launches Smart Skid Mounted Fire Pump Set

Kirloskar Brothers (KBL) has launched its Smart Skid Mounted Fire Pump Set, an integrated fire protection solution designed to improve operational efficiency, remote monitoring and installation flexibility. The system was inaugurated by Ms Madhuritai Misal, Hon. Minister of State for Urban Development, Government of Maharashtra.The Smart Skid Mounted Fire Pump Set is a factory-tested, pre-packaged solution that combines FM/UL-certified motor and engine pump sets with IoT-enabled remote monitoring. Designed to deliver a flow rate of 170 m³/hr at a head of 100 metres, the system aims to provide..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

-->