India-US, EU Trade Engagement to Boost Auto Components Export
India's measured trade interaction with the United States and the European Union is poised to bolster the nation's auto component exports and aid its developing battery and advanced manufacturing sector, according to Heavy Industries Minister HD Kumaraswamy.
"Regarding trade, India has taken a measured and strategic approach in its engagement with important global partners," Kumaraswamy stated during the 60th ACMA Excellence Awards and Technology Summit 2026.
He stated that regarding recent progress under the India-US trade agreement, there are "commitments for preferential access to certain automotive parts and the relaxation of trade-restrictive measures."
He mentioned that discussions with the European Union -- which he referred to as a key strategic involvement -- aim to tackle non-tariff obstacles, enhance regulatory collaboration, and harmonize standards, especially in sectors like efficiency, sustainability, and cutting-edge automotive technologies.
"These initiatives aim to boost market access and strengthen the global competitiveness of Indian manufacturers," he stated.
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Kumaraswamy stated that the automotive parts sector will be crucial in influencing future global supply chains as India moves forward with its long-term development goals. He stated that advancements in electronics, power electronics, lightweight materials, and intelligent systems will be crucial for sustaining competitiveness in international markets.
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Emphasizing the sector's recent results, Kumaraswamy pointed out that India's vehicle output increased from 28.4 million units in the financial year 2023-24 to close to 31 million units in 2024-25. Exports rose from 4.5 million units to more than 5.3 million units in that time frame.
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The minister stated that the government is strengthening local manufacturing capacities via policy assistance and specific incentives. The Production Linked Incentive (PLI) program for vehicles and auto parts, with a budget of around Rs 26,000 crore, seeks to enhance localization and advanced manufacturing.