TL;DR
India-US trade deal offers preferential tariffs for Indian auto components, boosting exports and strengthening bilateral manufacturing ties.
The Indian auto component industry is set to receive a significant boost following the recently finalized interim trade agreement between India and the United States. This pact provides preferential tariff rate quotas for Indian automotive parts, enabling exporters to access the lucrative US market with reduced or zero duties. Previously, these components faced substantial tariffs, sometimes as high as 50%, impacting their competitiveness in the international market.
Industry bodies, including the Automotive Component Manufacturers Association (ACMA), have welcomed the development, highlighting it as a clear signal of strengthening bilateral manufacturing and supply chains. This strategic move is expected to enhance India's export competitiveness, foster deeper technology collaboration, and reinforce the country's position as a reliable partner in global automotive supply chains. Companies like Uno Minda foresee new avenues for export-led growth, expanding their footprint and contributing to India's status as a world-class manufacturing hub.
