India-US Trade Pact: Boost for Auto Components

The Automotive Component Manufacturers Association of India welcomed the Interim Trade Agreement framework between India and the US, which aims to boost bilateral trade and cooperation in manufacturing. Positive steps include preferential tariff rates and removing tariffs on inputs, enhancing India's role in global auto supply chains.

The Automotive Component Manufacturers Association of India (ACMA) has praised the Interim Trade Agreement framework established between India and the US as a significant stride towards bolstering bilateral trade and manufacturing cooperation. The arrangement promises to fortify the supply chains connecting the two economies.

Highlighting key features of the agreement, ACMA President Vikrampati Singhania noted the benefits of preferential tariff rate quotas for auto parts and the removal of Section 232 tariffs on select inputs. These changes are considered critical in enhancing the export competitiveness of the Indian auto component sector.

Singhania expressed optimism about future collaboration between the two governments, emphasizing the importance of integrating automotive components into the finalized agreement to ensure balanced market access and policy certainty for the long term.

(With inputs from agencies.)