The Automotive Component Manufacturers Association of India (ACMA) has welcomed the signing of the landmark India–European Union Free Trade Agreement (FTA), and congratulated the Hon’ble Prime Minister of India, Shri Narendra Modi, on this significant achievement.
The agreement marks an important milestone in strengthening India’s integration with global automotive value chains and is expected to enhance trade competitiveness, technology collaboration, and market access for the domestic auto-components industry.
The European Union is India’s largest trading partner in goods and a crucial export destination for Indian auto-component manufacturers, accounting for nearly 30 percent of India’s total component exports. Trade in auto components between India and the EU has remained broadly balanced, highlighting the complementary strengths and mutual opportunities across both regions.
At a time when global supply chains are undergoing major realignments, the India–EU FTA is expected to create a framework for resilient, trusted, and diversified supply chains. For India’s auto-component industry, the agreement will lead to enhanced export competitiveness, facilitate deeper technology collaboration, and attract long-term investments, while enabling European companies to leverage India’s fast-growing automotive market – the world’s third largest.
Commenting on the development, Vikrampati Singhania, President, ACMA and Vice Chairman & MD, JK Fenner (India), said, “The signing of the India–EU FTA is a timely and strategic step. For the auto-components industry, it has the potential to unlock new opportunities for exports, technology partnerships, and investment-led growth. As global OEMs and suppliers look to build resilient supply chains, a well-balanced and pragmatic FTA can position India as a reliable manufacturing and sourcing partner for Europe, while strengthening our long-standing industrial partnership.”
ACMA believes that a calibrated approach on tariffs, regulatory standards, and sustainability-related issues, including CBAM, will be critical to fully realising the agreement’s potential. The Association looks forward to working closely with the Government of India and European stakeholders to ensure smooth implementation and meaningful outcomes for the automotive ecosystem on both sides.
