New Delhi: India’s auto component industry is set for a significant boost after the India-US trade agreement provided preferential tariff treatment to Indian auto parts exports, including zero-duty access for certain products. The joint statement said India will receive preferential tariff rate quotas for automotive parts currently covered by US national security tariffs, paving the way for Indian exporters to access the US market at low or zero duties. They were previously hit by heavy tariffs and faced duties of up to 50% on some auto components. Automotive Component Manufacturers Association (ACMA) President Vikrampati Singhania said the move signals a clear intention to strengthen bilateral manufacturing and supply chains. “These measures will enhance export competitiveness, deepen technology cooperation and strengthen India’s role as a reliable partner in resilient global automotive supply chains.” Auto component maker Uno Minda said the agreement opens a new phase of export-led growth for the region. Ravi Mehra, MD, Uno Minda, said, “For Uno Minda, this opens up attractive opportunities to further expand our footprint, strengthen supply-chain agility and expand our contribution to the US market while proudly cementing India’s position as a world-class manufacturing hub.” Tenneco India said the US tariff reduction will significantly improve the cost competitiveness of India-made components. “This will significantly enhance the cost competitiveness of our premium products like shock absorbers and exhaust systems in the US market, positioning us to expand our presence, increase volumes and strengthen integration within the supply networks of US OEMs,” said Arvind Chandra, Whole-Time Director and CEO, Tenneco India. Bharat Forge described the deal as a “game changer” for Indian industry and said it strengthens India’s position in global supply chains. According to ACMA, exports to the US in 2024-25 were worth $6.2 billion, while in the first half of this year it has reached $3.1 billion.
