The Automotive Component Manufacturers Association of India (ACMA) has responded to the United States' decision to impose new tariffs on select Indian imports by urging the industry to focus on self-reliance and competitiveness. In a statement, ACMA President Shradha Suri Marwah acknowledged that the move poses near-term challenges for Indian exporters but also presents an opportunity for course correction through value addition, diversification and domestic capacity building.
The US currently accounts for a significant share of India’s auto component trade. In FY2024-25, it made up 27 percent of the USD 22.9 billion exported from India, while contributing 7 percent of the USD 22.4 billion worth of components imported into the country. These figures underline the depth of bilateral trade in this sector, making the new tariff measures particularly relevant for Indian suppliers with substantial exposure to the US market.
Marwah highlighted that the development, though unfavourable in the short term, must act as a signal for the Indian component sector to sharpen its global edge. She stated that the emphasis must now shift towards building greater domestic value, investing in innovation and securing alternative markets to reduce overdependence on any single geography. Her remarks point to a broader concern that India’s export mix may need rebalancing as protectionist trends rise globally.
At the same time, ACMA maintained a measured tone on the future of Indo-US trade ties. It expressed confidence that the long-standing strategic relationship between the two nations would serve as a strong base for constructive dialogue and eventual resolution. The association also acknowledged the proactive stance taken by the Indian government to address the issue at a diplomatic level, which could soften the long-term impact of the tariffs.
This shift comes at a time when India’s auto component industry has been steadily gaining momentum. The sector reported a total turnover of USD 80.2 billion in FY2025, with a positive trade balance of over USD 450 million. ACMA’s call to reinforce domestic strength is likely to resonate with smaller and medium-sized enterprises within the ecosystem, many of whom remain reliant on developed markets for export growth.
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