Union Commerce and Industry Minister Piyush Goyal addressed the 66th Annual Session of the Automotive Component Manufacturers Association of India (ACMA) in New Delhi, calling on Indian auto component manufacturers to expand beyond exports and build a stronger global manufacturing presence.
Goyal urged the industry to transform local businesses into global businesses, expand manufacturing footprints in developed countries, strengthen supply-chain resilience and move up the value chain as India deepens its integration with international markets.
Editorial Insight
Key Highlights
Important points readers should notice.
Beyond exports: The next phase for Indian auto-component makers is being framed around establishing manufacturing operations in global markets.
FTA advantage: Recent trade agreements are positioned as an opportunity to improve market access for Indian manufacturers.
Supply-chain resilience: Greater indigenisation is being encouraged to reduce vulnerability to future disruptions.
Value-chain upgrade: The sector is being pushed towards higher-value manufacturing and advanced solutions.
Global competitiveness: India’s cost and quality advantages are increasingly being translated into an overseas manufacturing strategy.
The Commerce and Industry Minister said India’s auto component industry has developed strong capabilities in cost competitiveness and quality and should now use that foundation to establish a presence in overseas markets.
He also encouraged manufacturers to leverage India’s recent free trade agreements to improve market access and strengthen their global footprint.
Goyal said the industry’s international trade is currently close to USD 50 billion, with imports and exports nearly evenly balanced. He noted that while imports can play a role in economic progress, the industry should simultaneously strengthen domestic capabilities and resilience.
Editorial Analysis
Why This Matters
The auto component industry is an important part of India’s manufacturing and export ecosystem. A shift from an export-only model towards overseas manufacturing could give Indian companies greater access to customers, supply chains and markets in developed economies.
The Minister also called for greater indigenisation of vulnerable components and supply chains. He urged companies to identify areas where they remain exposed to external disruptions and develop active programmes to reduce those vulnerabilities.
Moving up the value chain was another key focus of his address. Goyal called on Indian manufacturers to move towards higher-value products and solutions instead of limiting their growth ambitions to conventional component manufacturing.
He also highlighted the importance of safety in the automotive industry, urging manufacturers to incorporate stronger safety features and technologies rather than waiting for government intervention to address potential risks.
The ACMA session also brought together international trade representatives, including US Ambassador to India Sergio Gor and UK Trade Commissioner for South Asia and British Deputy High Commissioner for Western India Harjinder Kang.
Gor said India and the United States were working towards a trade relationship that is fair, reciprocal and mutually beneficial. He also highlighted the broader cooperation between the two countries across sectors including technology, pharmaceuticals, defence and other strategic areas.
Goyal's participation comes as India seeks to deepen its integration with global manufacturing and supply chains. For the auto component sector, the government's emphasis is increasingly shifting from simply increasing exports to building international manufacturing capabilities and becoming more competitive across global markets.
The Minister also highlighted the growing participation of women in the auto component sector and encouraged the industry to continue expanding opportunities for women as the sector grows.
