India’s auto component industry has welcomed the India–US trade agreement, calling it a constructive move that could improve the sector’s access to the American market.
The Automotive Component Manufacturers Association of India (ACMA) said the deal would help Indian suppliers become more competitive in the US, particularly with the proposed reduction in reciprocal tariffs to 18 per cent.
Tariff reduction seen as major positive
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“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.
Singhania noted that the timing of the agreement is significant, with global supply chains currently undergoing major shifts. According to him, the deal offers greater predictability for companies making long-term trade and investment decisions.
Scope for deeper industry collaboration
The US remains one of the key export markets for India’s auto component industry. Singhania said a more balanced trade framework could support further expansion in bilateral trade and promote collaboration in areas such as advanced manufacturing, electrification, electronics and clean mobility.
“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.
ACMA said it expects continued engagement with policymakers in both countries to ensure the agreement delivers measurable benefits for the industry, strengthens supply chains and reinforces India’s position as a global manufacturing and sourcing base.
{{/usCountry}}ACMA said it expects continued engagement with policymakers in both countries to ensure the agreement delivers measurable benefits for the industry, strengthens supply chains and reinforces India’s position as a global manufacturing and sourcing base.
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Trade figures underline the importance of the US market
In terms of trade flows, India’s auto component exports to the US were valued at USD 3,124 million in the first half of the current financial year. During the same period, exports from the US to India stood at USD 844 million.
For FY2025, the Indian auto component industry reported a combined turnover of USD 80.2 billion. Exports accounted for USD 22.9 billion of this total, with the sector posting a trade surplus of USD 500 million.