Boosting Auto Trade: India and US Forge Interim Trade Agreement

The Automotive Component Manufacturers Association of India (ACMA) has lauded the newly announced Interim Trade Agreement framework between India and the United States, marking a significant step toward fortifying bilateral trade relations. The joint announcement from both nations highlights a mutual commitment to boost trade and manufacturing cooperation.

Vikrampati Singhania, President of ACMA, emphasized the potential benefits of the agreement for the Indian auto component sector. Key aspects include preferential tariff rate quotas, elimination of select Section 232 tariffs, and steps for further tariff rationalization under a proposed Bilateral Trade Agreement. These initiatives are anticipated to enhance competitiveness and consolidate India's position as a crucial partner in global supply chains.

Recent data reveals a robust growth trajectory in auto components trade between India and the US over recent financial years. India's exports to the US surged from USD 3,561 million in FY2020-21 to USD 6,225 million in FY2024-25, while US exports to India also showed a steady rise from USD 904 million to USD 1,505 million over the same period.