'Trade deal to help revive India's tractor, auto component exports to United States'

President and Managing Director of CNH India region Narinder Mittal said the company is hopeful of revival of orders from the US markets as the reduced tariff of 18% would make made-in-India products competitive.

New Delhi: Global agriculture and construction equipment maker CNH on Tuesday said its exports to US from Indian units, which has come to near standstill due to high tariffs, is likely to revive in the coming months as the two countries move closer to ink a trade deal.

President and Managing Director of CNH India region Narinder Mittal said the company is hopeful of revival of orders from the US markets as the reduced tariff of 18 per cent would make made-in-India products competitive.

“With tariff situation easing, we should be able to offset the loss in sales that we have due to high tariffs,” Mittal told reporters. Under the proposed bilateral trade agreement, the US has agreed to lower tariffs on the majority of Indian goods to 18 per cent from a high of 50 per cent.

According to Mittal, nearly 20 per cent of agricultural equipment and 25 per cent of construction equipment, manufactured by CNH in India, are exported. Majority of these exports go to the US, Europe and Latin America.

He said trade deals with the US and EU would give a big boost to export of auto components from India. CNH targets to boost the exports of auto components from India to $500 million in the next three-four years from around $80 million in 2025.

India contributes nearly 5-6 per cent of CNH’s around $20 billion global revenue. Mittal said CNH is hopeful of around 10 per cent annual growth in the Indian market in the coming years.

At present, CNH has three manufacturing units in India – Greater Noida, Pithampur in Madhya Pradesh and Pune. The company plans to set up a new unit to boost its production.

Mittal said CNH plans to invest around Rs 1,800 crore to expand its operations in the Indian market. The expansion plan includes setting up a new manufacturing plant.

Mittal underlined the need for higher mechanisation to make India’s agriculture sector globally competitive.

With mechanisation levels still below 5 per cent in sugarcane harvesting, under 30 per cent in grain harvesting and merely 2 per cent in crop residue management, the opportunity for growth in India remains significant, Mittal told reporters at its Pune plant, where the company manufactures a wide range of harvesting and crop solution equipment.

“As India moves further towards becoming a developed economy, agricultural mechanisation will play a critical role in driving productivity, efficiency and sustainability across the farming ecosystem,” he said.

“Our technology leadership in sugarcane harvesters, combine harvesters and balers is demonstrated through machines that are technologically advanced, fuel-efficient, reliable and engineered specifically for Indian soil and farming conditions and we are proud to design and produce these solutions for Indian farmers,” he added.