“The proposed reduction in reciprocal tariffs to 18 percent is a positive step that will increase the competitiveness of Indian auto 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 brings greater predictability and confidence to long-term trade and investment decisions, he added.The US is among the top export destinations for the Indian auto components industry, Singhania said.
“A more balanced and enabling trade framework can unlock further growth in bilateral trade, deepen industrial cooperation and encourage technology-driven partnerships in advanced manufacturing, electrification, electronics and clean mobility solutions,” he added.
The industry body noted that it looks forward to working more closely with policymakers on both sides to ensure that the agreement translates into tangible results for the industry, supports resilient supply chains and strengthens India’s role as a trusted global manufacturing and sourcing hub. Indian exports of auto components to the US stood at $3,124 million in the first half of the current fiscal year.
US exports to India amounted to $844 million in the first half of the current fiscal year.
In fiscal 2025, the domestic auto parts industry’s combined revenue was $80.2 billion, with $22.9 billion in exports and a trade surplus of $500 million.
#IndiaUS #Trade #Agreement #Increase #Competitiveness #Auto #Components #ACMA