ACMA Welcomes the India–US Trade Interim Agreement Framework

The Automotive Component Manufacturers Association of India (ACMA) welcomes the announcement of the Interim Trade Agreement framework between India and the United States, reflecting a shared commitment to strengthening bilateral trade, manufacturing cooperation, and resilient supply chains between the two economies.

Commenting on the announcement, Vikrampati Singhania, President, ACMA and Vice Chairman & MD, JK Fenner (India), said “ACMA welcomes the India–U.S. Interim Trade Agreement framework and the parallel announcements by the U.S. Administration, which signal a clear intent to strengthen bilateral manufacturing and supply-chain partnerships. For the Indian auto component industry, the commitment to preferential tariff rate quotas for automotive parts, removal of Section 232 tariffs on select inputs, and a pathway for further tariff rationalisation under the proposed Bilateral Trade Agreement are indeed positive steps. These measures will lead to enhanced export competitiveness, deepen technology collaboration, and reinforce India’s role as a trusted partner in resilient global automotive supply chains. ACMA looks forward to constructive engagement with both governments to ensure that automotive components are fully integrated into the final agreement, with balanced market access and long-term policy certainty.”

The Automotive Component Manufacturers Association of India (ACMA) is the apex body representing the interest of the Indian Auto Component Industry. Its membership of over 1064 manufacturers contributes more than 90% of the auto component industry’s turnover in the organised sector. In FY2025, the combined turnover of the Auto Component Industry stood at USD 80.2 billion, with USD 22.9 billion in exports and a trade surplus of USD 500 million.

Trade India – US Auto Components Trade:

(USD Million)