Safety net for OEMs, auto parts

THE INTERIM INDIA-US trade framework is expected to protect domestic automobile manufacturing base while offering clearer market access and tariff relief for auto component exporters, with any meaningful opening for finished vehicles pushed to negotiations under the proposed bilateral trade agreement (BTA).

- NITIN KUMAR & AKBAR MERCHANT

Domestic automobile original equipment manufacturers (OEMs) are unlikely to face near-term disruption, as the interim framework does not provide broad tariff concessions for fully built vehicle imports.