The Automotive Component Manufacturers Association of India (ACMA) applauded Prime Minister Narendra Modi and Commerce Minister Piyush Goyal on securing a trade agreement with the US, reflecting the growing strategic and economic partnership between the world’s two largest democracies.
“The proposed reduction in reciprocal tariffs to 18 per cent is a positive step that will enhance the competitiveness of Indian automotive components in the US market,” ACMA President Vikrampati Singhania said in a statement.
At a time when global supply chains are undergoing structural realignments, this development provides greater predictability and confidence for long-term trade and investment decisions, he added.
The US is among the most important export destinations for India’s auto component industry, Singhania stated.
“A more balanced and facilitative trade framework can unlock further growth in bilateral trade, deepen industrial collaboration, and encourage technology-led partnerships across advanced manufacturing, electrification, electronics, and clean mobility solutions,” he added.
The industry body noted that it looks forward to closer engagement with policymakers on both sides to ensure that the agreement translates into tangible outcomes for industry, supports resilient supply chains, and strengthens India’s role as a trusted global manufacturing and sourcing hub.India’s auto components exports to the US stood at $3,124 million in the first half of the current financial year.
US exports to India stood at $844 million in the first half of the ongoing fiscal year.
In FY2025, the combined turnover of the domestic auto component industry stood at $80.2 billion, with $22.9 billion in exports and a trade surplus of $500 million.
