# Govt tells industry to use FTAs, diversify exports, add value 2026-08-20T09:41:47+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet The government on Thursday told industry to actively use free trade agreements (FTAs), focus on value addition, and diversify export markets to strengthen India's position in global manufacturing. Additional Secretary in the Department of Commerce Yashvir Singh, speaking at a manufacturing conclave, said the share of capital goods in India's export basket has risen from 13% in 2014 to 19% now but that this pace must accelerate. Singh listed five 'imperatives' for industry: invest in FTA utilisation by understanding rules of origin, move up the value chain, build resilient supply chains to counter China's dominance in critical minerals, actively diversify markets using pacts with Oman, New Zealand and Mauritius, and engage on technical standards. He warned that trade is now a tool of geopolitical statecraft and that the era of friction-free free trade is over. Singh said China dominates rare earths, graphite and magnesium processing, calling one-country concentration the biggest economic security risk. He urged industry to position India not as 'China plus one' but as a trusted, resilient partner with the world's fastest-growing consumer market. ## Indian Opinion Analysis The shift from 'free trade' to what the commerce department calls 'commercial nationalism' marks a significant departure from the decades-old consensus that trade policy should be ideology-neutral. India has signed FTAs with the UAE, Australia, and the EFTA bloc in the last three years, but utilisation rates have remained low, often below 30%, because exporters find rules of origin complex or unprofitable. The real test will be whether domestic manufacturers, especially in MSMEs, can now map their supply chains to claim tariff preference. Watch for the next round of trade data from the commerce ministry, expected next month, to see if this push gains traction. ## Coverage - business-standard.com Straight news report of a government official's speech, no critical framing or counterpoint included. This story was synthesised by AI from the source linked above. Tags: China, critical minerals, Department of Commerce, free trade agreements, manufacturing, Yashvir Singh Canonical: https://indianopinion.org/govt-tells-industry-to-use-ftas-diversify-exports-add-value/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/govt-tells-industry-to-use-ftas-diversify-exports-add-value/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/