The Automotive Component Manufacturers Association of India (ACMA) has welcomed the Union Budget 2026–27 presented by the Hon’ble Finance Minister, Nirmala Sitharaman, praising it as a balanced and growth-oriented budget that strengthens India’s manufacturing agenda, improves export competitiveness, and supports the shift towards new technologies.
ACMA noted that the continued emphasis on manufacturing and MSMEs—through initiatives aimed at improving credit access, enabling scale, and boosting productivity—is a positive development for the auto component sector. These measures are expected to support capacity building and promote long-term investment in innovation and technology upgrades, which are essential for global competitiveness.
The Association also appreciated the focus on advanced manufacturing, clean energy, and stronger domestic value chains for electric mobility and automotive electronics. Initiatives encouraging localisation of key components such as batteries, power electronics, and high-value electronic systems will help build stronger supply chains and reduce reliance on imports.
ACMA further welcomed the renewed push towards exports, smoother trade facilitation, and better logistics efficiency, especially at a time when global trade conditions remain uncertain. Steps to enhance export credit availability and address non-tariff barriers are expected to support stronger global integration for Indian component manufacturers and reinforce India’s image as a dependable sourcing base. The industry also acknowledged the Budget’s efforts in customs duty rationalisation, correction of inverted duty structures, and simplification of procedures—moves that will help reduce costs and improve the overall business environment.
Commenting on the Budget, Vikrampati Singhania, President, ACMA and Vice Chairman & Managing Director, JK Fenner (India) Limited, said “The Union Budget 2026–27 presents a strong and credible direction for enhancing India’s manufacturing ecosystem. Its continued focus on MSMEs, clean mobility and export support will help the auto component industry manage global challenges while strengthening India’s position as a cost-competitive and trusted manufacturing and sourcing hub.” ACMA reiterated its commitment to work closely with the Government on the effective rollout of Budget proposals and to further strengthen the auto component industry as a key driver of India’s industrial growth and export performance.
The Automotive Component Manufacturers Association of India (ACMA) is the apex body representing India’s auto component industry. With a membership of over 1,000 manufacturers, ACMA members account for more than 90% of the organised sector’s turnover. In FY2024, the auto component industry recorded a total turnover of USD 74.1 billion, exports of USD 21.2 billion, and a trade surplus of USD 300 million.
