The Automotive Component Manufacturers Association of India (ACMA) has welcomed the Reserve Bank of India’s recent notification on interest subvention for pre- and post-shipment export credit under the Export Promotion Mission (Niryat Protsahan), stating that the measure will provide much-needed liquidity support to exporters amid challenging global conditions.
Vikrampati Singhania, President, ACMA, noted that the initiative will improve access to affordable working capital for auto component manufacturers, particularly micro, small and medium enterprises (MSMEs), enabling them to execute export orders more efficiently. He emphasised that timely and smooth implementation by banks and financial institutions will be critical to ensuring exporters fully benefit from the scheme.
The auto component industry has been under pressure over the past year due to weak demand in key overseas markets and high logistics costs, prompting industry players to seek lower financing costs to remain competitive with suppliers from Southeast Asia and Eastern Europe.
Echoing similar views, Vinnie Mehta, Director General, ACMA, highlighted that MSMEs dominate the auto component sector, which exports nearly 30% of its production. He added that, combined with effective execution, the interest subvention scheme could significantly support export momentum and strengthen India’s position as a dependable global sourcing hub.
ACMA further stated that the measure would help exporters manage cash flows, maintain price competitiveness, and support the government’s broader objective of boosting merchandise exports.
