Auto Component Industry Urged to Tap $60 Trillion Markets Across 38 Developed Countries: Piyush Goyal

Commerce and Industry Minister Piyush Goyal has asked Indian auto-component manufacturers to expand their operations beyond India and establish a presence in developed markets, as per a PIB announcement.  

He made the remarks at the 66th annual session of the Automotive Component Manufacturers Association of India (ACMA) in New Delhi. 

Trade Agreements Open $60 Trillion Market 

Goyal said nine trade agreements concluded over the last four to five years have added access to 38 developed countries, representing economies with a combined GDP of $60 trillion.  

Agreements signed before 2014 covered economies with a combined GDP of about $10 trillion at today’s value.He said the newer agreements provide Indian auto-component companies with markets where there is less direct competition and greater complementarity.  

The minister asked companies to use this access to build manufacturing operations in Europe and the US. 

Industry Trade at Nearly $50 Billion 

According to Goyal, international trade by the auto-component industry is nearly $50 billion, with imports and exports accounting for roughly equal shares. He said the industry needs to increase international investment and build more business outside India. 

The minister also said Indian manufacturers have developed the ability to produce quality components at globally competitive prices.  

He asked companies to move towards integrated, higher-value products rather than remaining focused only on individual components. 

Supply Chain and Manufacturing Focus 

Goyal called for active indigenisation of products where supply chains remain dependent on external sources. He also pointed to government support for auto components, speciality steel, technical textiles and semiconductors as measures aimed at strengthening domestic manufacturing capacity. 

The government is developing 20 smart and industrial cities and has proposed dedicated industrial parks for auto components, including plug-and-play infrastructure. 

US and UK Trade Opportunities 

US Ambassador Sergio Gor said Indian component makers could consider greenfield assembly, R&D centres and distribution networks in the US.  

UK Trade Commissioner Harjinder Kang highlighted the India-UK CETA, which came into force on 15 July 2026, with tariff-free access for automotive components. 

Focus on Safety and Technology 

Goyal also called for greater use of artificial intelligence in quality control and customer assessment, along with more attention to vehicle safety. He said industry and government should work towards making vehicle scrappage more valuable for consumers. 

Read More: India’s Economy Expands 7.8% in Q1 FY27 As Services and Fixed Investment Drive Growth! 

Conclusion 

Goyal said overseas expansion, higher-value products and stronger supply chains would support the auto-component industry's earlier stated $500 billion target. 

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