ACMA welcomes India–US Interim Trade Agreement Framework

The Automotive Component Manufacturers Association of India (ACMA) has welcomed the announcement of the India–United States Interim Trade Agreement framework, describing it as a significant step towards strengthening bilateral trade, manufacturing collaboration, and resilient supply chains between the two economies.

Commenting on the development, Vikrampati Singhania, President, ACMA, and Vice Chairman & Managing Director, JK Fenner (India), said: “ACMA welcomes the India–U.S. Interim Trade Agreement framework and the accompanying announcements by the U.S. Administration, which clearly signal a shared intent to deepen bilateral manufacturing and supply-chain partnerships. For the Indian auto component industry, the commitment to preferential tariff rate quotas for automotive parts, the removal of Section 232 tariffs on select inputs, and the outlined pathway for further tariff rationalisation under the proposed Bilateral Trade Agreement are encouraging developments.”

He added that these measures are expected to enhance export competitiveness, foster deeper technology collaboration, and strengthen India’s position as a trusted partner in resilient global automotive supply chains.

“ACMA looks forward to continued engagement with both governments to ensure that automotive components are comprehensively integrated into the final agreement, with balanced market access and long-term policy certainty,” Singhania said.

ACMA is the apex industry body representing the interests of the Indian auto component sector, with a membership of over 1,064 manufacturers, accounting for more than 90% of the organised sector’s turnover. In FY2025, the Indian auto component industry recorded a combined turnover of USD 80.2 billion, including USD 22.9 billion in exports, and achieved a trade surplus of USD 500 million.

India–US Auto Components Trade (USD Million)