Commerce Minister Piyush Goyal's Address to Auto Component Industry
Union Minister of Commerce & Industry Shri Piyush Goyal addressed the 66th Annual Session of the Automotive Component Manufacturers Association (ACMA) in New Delhi, calling for the industry to transform local businesses into global enterprises and expand manufacturing footprints across developed countries. The minister emphasized strengthening supply-chain resilience and moving up the value chain as India deepens its integration with global markets, with the industry targeting a $500 billion global ambition.
Industry Performance and Trade Figures
Goyal revealed that the auto component industry's international trade stands at nearly $50 billion, evenly divided between imports and exports. He noted that while imports play a role in economic progress, there needs to be a wider gap between imports and exports. The minister highlighted India's 7.8% economic growth rate, making it the fastest-growing among large economies, with the auto sector posting high double-digit growth rates. Specifically, five million passenger cars are expected to be sold this year, with electric vehicles experiencing six-month waiting periods due to high demand.
Market Access Through Trade Agreements
The government has finalized nine trade agreements in the last four to five years, covering 38 developed countries with a collective GDP of $60 trillion. This represents a significant expansion from pre-2014 agreements that covered economies worth $10 trillion at today's value. These agreements provide two-way market access to prosperous countries with high GDPs and high per capita GDPs, offering less competition and greater complementarity with Indian industry. ACMA has played a role in FTA negotiations, seeking zero-duty access for Indian auto components while supporting reciprocal opening of the Indian market.
Government Initiatives and Support Programs
Goyal highlighted various government programs aimed at strengthening industrial capacity and supply-chain resilience, including support for auto component industry scaling, specialty steel manufacturing, technical textile PLI relevant to auto components, and semiconductor industry support to bring resilience to auto component supply chains. The government is creating 20 smart cities and industrial parks, with invitations for dedicated auto component parks featuring plug-and-play infrastructure. The minister specifically suggested US-India partnership parks and auto-component-only parks.
International Partnerships and Collaborations
U.S. Ambassador to India H.E. Sergio Gor described the U.S.-India automotive partnership as being at a "historic high point," noting that both governments are working toward a fair, reciprocal, and mutually beneficial trade relationship. The U.S. Embassy in India facilitated $24 billion in new investment into the United States, ranking first among embassies globally. Ambassador Gor invited Indian auto component manufacturers to explore investment in the U.S. through greenfield assembly, R&D centers, and distribution networks.
UK Trade Commissioner Harjinder Kang highlighted the India-UK CETA that came into force on July 15, 2026, which provides 99% of UK tariff lines and 90% of Indian tariff lines reduced to zero or very low duties, with streamlined customs processes. The agreement enables automotive component manufacturers to gain tariff-free access to each other's markets, deepening supply chains and enabling joint ventures and partnerships.
Critical Mineral Partnerships and Future Agreements
Goyal announced that India and the United States are working together as partners in a critical mineral partnership, which will strengthen resilient supply chains. He referenced the Pax Sillica initiative launched by the United States, which brings together like-minded democratic countries to ensure no single geography can weaponize trade. The minister also revealed that India will soon have GCC and Israel FTAs once the situation stabilizes, along with FTAs with other countries to secure greater access to critical minerals.
Industry Priorities and Call to Action
The minister outlined specific priorities for the industry, including converting local businesses into global businesses, establishing active indigenization programs for greater supply-chain resilience, moving up the value chain to deliver integrated high-value solutions, and focusing on safety with greater industry involvement. He emphasized the need for greater technology adoption, including artificial intelligence for quality control and customer assessment, and called for industry-government collaboration on making vehicle scrappage a profitable proposition for new vehicle buyers.