|
The Automotive Component Manufacturers Association of India (ACMA) welcomes the announcement of the Interim Trade Agreement framework between India and the United States, reflecting a shared commitment to strengthen bilateral trade, manufacturing cooperation, and resilient supply chains between the two economies.
The US and India announced in a joint statement that they have reached a framework for an Interim Agreement on reciprocal, mutually beneficial trade (the Interim Agreement) and have agreed on its terms. Commenting on the announcement, Vikrampati Singhania, President, ACMA and Vice Chairman & MD, JK Fenner (India), said, "ACMA welcomes the India-U.S. Interim Trade Agreement framework and the parallel announcements by the US Administration, which signal a clear intent to strengthen bilateral manufacturing and supply-chain partnerships. For the Indian auto component industry, the commitment to preferential tariff rate quotas for automotive parts, removal of Section 232 tariffs on select inputs, and a pathway for further tariff rationalisation under the proposed Bilateral Trade Agreement are indeed positive steps." "These measures will lead to enhanced export competitiveness, deepen technology collaboration, and reinforce India's role as a trusted partner in resilient global automotive supply chains. ACMA looks forward to constructive engagement with both governments to ensure that automotive components are fully integrated into the final agreement, with balanced market access and long-term policy certainty," he added. As per the data shared by the ACMA, trade in auto components between India and the United States has continued to expand over the past five financial years, reflecting strengthening industrial ties between the two countries. India's exports of auto components to the US rose from USD 3,561 million in FY2020-21 to USD 5,280 million in FY2021-22, before increasing further to USD 5,648 million in FY2022-23. Exports maintained their upward momentum in FY2023-24 at USD 5,823 million and reached USD 6,225 million in FY2024-25. In the first half of FY2025-26, India exported auto components worth USD 3,124 million to the US. On the other hand, US exports of auto components to India also registered consistent growth. Shipments increased from USD 904 million in FY2020-21 to USD 1,218 million in FY2021-22, followed by USD 1,482 million in FY2022-23. Exports remained broadly stable at USD 1,483 million in FY2023-24 and rose slightly to USD 1,505 million in FY2024-25. During the first half of FY2025-26, US exports to India stood at USD 844 million. (ANI)
|
