Component Industry Seeks Closer Govt Ties For Raw Materials, Access to New Markets

At a time when the geopolitical situation is challenging the global supply chain, India's component industry is pushing for stronger government partnerships to secure a robust supply of critical raw materials and gain access to new markets.

"Going forward, I seek closer government partnerships to secure critical raw materials, deepen international alliances for access to new markets, and strengthen our industry's overall competitiveness," said Shradha Suri Marwah, president of the Automotive Component Manufacturers Association of India (ACMA).

Speaking at the 56th annual convention of ACMA in Delhi, Marwah noted that India's auto component industry displayed significant resilience despite an unsettled global environment. In financial year 2025, the industry clocked a turnover of ₹6.73 lakh crore ($80.2 billion), representing growth of 9.6% year on year. Exports grew 8% to $22.9 billion (₹1.92 lakh crore).

"Even in the face of protectionist measures worldwide, we have continued to increase our presence and deliver value to our customers globally," Marwah said.

However, she highlighted that the path ahead is not without hurdles. "We stand at a crossroads where opportunities are immense, but challenges are daunting. To allude to some of them, geopolitical volatility, trade wars, tariff escalations, and export restrictions are already defining the supply chain," she said.

"Technology disruption, the rapid shift to electrification, digitalisation, and software-driven vehicles require unprecedented investments in R&D and technology. Sustainability and circularity, as well as climate imperatives and the need for resource efficiency, demand innovation that is both responsible and scalable."

Critical raw materials — including rare earth magnets, semiconductors, and battery inputs are becoming a strategic issue that requires national focus, she added.