High US tariffs are expected to affect close to 8 per cent of India’s overall auto component production, ratings firm Icra said on Wednesday.
Indian auto component exporters are at a relative disadvantage compared to most other Asian exporting nations, highlighting the importance of concluding an India-US bilateral trade agreement, it added.
Auto component exports contribute nearly 30 per cent to the industry’s revenues, with the US alone accounting for 27 per cent of this share.
“As a result, close to 8 per cent of India’s overall auto component production is expected to be directly affected by the recently announced tariffs,” Icra stated.
The imposition of a 50 per cent tariff on Indian goods places Indian auto component exporters at a disadvantage compared to their Asian counterparts, as countries such as China, Japan, Vietnam, and Indonesia face lower tariffs of 1530 per cent, it pointed out.
Further, manufacturers in Mexico and Canada remain exempt under the United …