US duty relief could trigger fresh orders for Indian industrial and auto suppliers

A sharp tariff reset for India’s industrial exports to the US could be the single biggest near-term boost for engineering companies, with duties on key industrial, oil and gas, and equipment components expected to fall meaningfully, according to Naresh Jalan, Managing Director of Ramkrishna Forgings.Jalan said the biggest relief is not in auto parts but in industrial components that currently face the harshest trade barriers.“We are waiting for the fine print,” he said.

Jalan expects auto components and other engineering products also to be brought under the same new tariff regime of around 18%, compared with earlier levels of about 15% or lower in some categories. The expectation, he said, is that most engineering exports from India will now be covered by a common, more predictable duty structure.

Crucially for the auto supply chain, Jalan said that although autos and auto components fall under the US national security-linked Section 232 framework, India may receive carve-outs similar to those granted earlier to countries such as Korea and Japan. He said this is why customers moved quickly after the announcement, with buyers reaching out almost immediately to indicate potential fresh orders.

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While the final contours will depend on the fine print of the trade agreement, Jalan said the direction of change is now broadly understood by US buyers, and the industry is preparing on the assumption that an 18% tariff will become the new operating baseline across auto, industrial and engineering exports.

Also Read: India gains cost edge as US tariff reset opens door for supply chain shift, say experts

Echoing the optimism across the auto and engineering supply chain, Rakesh Sharma, Executive Director at Bajaj Auto, said the easing of tariffs may not have a large immediate impact on the company’s US-bound shipments, but will become increasingly relevant as global production is ramped up from India. “We do foresee more and more production shifting into India,” Sharma said, adding that a more supportive tariff environment will be helpful as the company expands the share of US-relevant products made in India.

For the entire interview, watch the accompanying video

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