The Union Ministry of Commerce & Industry has urged India’s automobile component manufacturers to expand beyond domestic markets and establish themselves globally. Commerce & Industry Minister Shri Piyush Goyal made this call while addressing the 66th Annual Session of the Automotive Component Manufacturers Association (ACMA) in New Delhi. The appeal comes as India looks to deepen trade partnerships and help its auto component sector achieve its target of becoming a USD 500 billion global industry.
What the minister announced
Shri Goyal highlighted that India’s auto component industry currently conducts nearly USD 50 billion in international trade, split evenly between imports and exports. He noted that India has finalised nine trade agreements over the last four to five years, covering 38 developed nations with a combined GDP of USD 60 trillion. This represents a significant increase compared to trade agreements signed before 2014, which collectively represented USD 10 trillion in GDP at current values.
The minister called on manufacturers to:
- Convert local businesses into global operations and expand manufacturing across developed countries
- Move up the value chain by delivering integrated, high-value solutions designed and supplied globally
- Strengthen supply-chain resilience through active indigenisation programmes
- Integrate technology, including artificial intelligence, for quality control and customer assessment
- Prioritise safety standards and customisation features gaining traction in Western markets
Shri Goyal also outlined government support measures, including industrial parks with 20 smart cities and industrial developments already underway. He invited international investors to establish enclaves in these parks and suggested creating parks dedicated specifically to auto component manufacturing.
The U.S. Ambassador to India and the UK Trade Commissioner also addressed the gathering, highlighting bilateral automotive partnerships and tariff advantages under existing trade agreements. The India-UK CETA, which came into force on 15 July 2026, provides tariff-free access for auto component manufacturers to each other’s markets.
What this means for you
If you work in or own an auto component business, this signals government backing for expansion into international markets through new trade routes and industrial infrastructure. The emphasis on technology adoption and supply-chain resilience suggests opportunities for those willing to invest in modernisation. However, the minister’s call for “greater international investment” also indicates increased global competition ahead for Indian manufacturers.