India-US trade deal: ACMA says lower tariffs can boost auto component exports

India’s auto component industry has welcomed the India–US trade agreement, calling it a constructive move that could improve the sector’s access to the American market.

The Automotive Component Manufacturers Association of India (ACMA) said the deal would help Indian suppliers become more competitive in the US, particularly with the proposed reduction in reciprocal tariffs to 18 per cent.

Tariff reduction seen as major positive

“The proposed reduction in reciprocal tariffs to 18 per cent is a positive step that will enhance the competitiveness of Indian automotive components in the US market,” ACMA President Vikrampati Singhania said in a statement.

Singhania noted that the timing of the agreement is significant, with global supply chains currently undergoing major shifts. According to him, the deal offers greater predictability for companies making long-term trade and investment decisions