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.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code