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India's auto-component trade balance turned into a deficit of $1.4 billion in FY 2025-26, with exports of about $24 billion against imports of $25.4 billion.
The figures were discussed at the 66th Annual Session of the Automotive Component Manufacturers Association of India in New Delhi on 2 September 2026.
The deficit followed two consecutive years of surplus, per ACMA data released on 8 July 2026.
Exports remain concentrated in mature technologies while imports are led by semiconductors, electric-vehicle battery cells and power electronics.
The Production Linked Incentive Scheme for automobiles and auto components had drawn Rs 45,477 crore of approved investment and over 67,000 jobs by 30 June 2026.
| Side of the trade | Typical content | Technology profile |
|---|---|---|
| Exports | Engine and transmission parts, braking and steering systems, castings and forgings | Mature technologies for conventional vehicles |
| Imports | Semiconductors, EV battery cells, power electronics, software-linked modules | Advanced, high-value and largely electronic |
The apex industry body for auto-component manufacturers in India. It compiles the sector's trade and turnover data, represents members before government, and holds an annual session at which the year's performance is reviewed - the 66th was held on 2 September 2026.
GS Paper 3 > Indian Economy - changes in industrial policy and their effects on industrial growth; effects of liberalisation on the economy
General Awareness - trade data, industrial schemes, PLI
General Awareness - economy in the news
With reference to the international trade of India at present, which of the following statements is/are correct? 1. India's merchandise exports are less than its merchandise imports. 2. India's imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years. 3. India's exports of services are more than its imports of services. 4. India suffers from an overall trade/current account deficit. Select the correct answer using the code given below:
Answer: 1, 3 and 4 only
Consider the following statements: Statement-I: India accounts for 3.2% of global export of goods. Statement-II: Many local companies and some foreign companies operating in India have taken advantage of India's 'Production-linked Incentive' scheme. Which one of the following is correct in respect of the above statements?
Answer: Statement-I is incorrect but Statement-II is correct
The excess of imports over exports in a given category or for the economy as a whole, over a stated period.
A central government scheme that pays incentives tied to incremental production and investment in selected manufacturing sectors.
A vehicle in which software controls major functions such as infotainment, connectivity and driving features, making it dependent on imported electronics.
Circuits and devices that convert and control electrical power - inverters and converters in an electric vehicle's drivetrain, for example.