Addressing a manufacturing conclave in New Delhi, Additional Secretary in the Department of Commerce, Yashvir Singh, outlined a strategic framework for Indian industry to strengthen its position in global supply chains. Emphasizing that trade agreements are doors that “do not open themselves,” Singh urged businesses to actively step through them to expand market access, drive investments, and absorb new technologies.
Key Strategic Obligations for India Inc:
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Invest in FTA Utilization: Indian businesses must master Rules of Origin requirements and map their supply chains to leverage preferential tariffs under signed Free Trade Agreements (FTAs).
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Accelerate Value Addition: Companies need to shift from exporting raw materials to high-value goods. The share of capital goods in India’s export basket has expanded from 13% in 2014 to 19%, but higher acceleration is required.
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Build Supply Chain Resilience: Highlighting global risks tied to China’s dominance over critical mineral processing, Singh urged Indian firms to invest heavily in critical minerals, active pharmaceutical ingredients (APIs), and domestic electronics components.
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Diversify Export Corridors: Indian exporters should actively capitalize on recently signed trade pacts with regions like Oman, New Zealand, and Mauritius to access previously under-penetrated markets across the Gulf, Oceania, and East Africa.
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Become Standard Setters: To own markets globally, Indian manufacturing must transition from being standard-takers to standard-setters, building on national technological successes like UPI, ONDC, and BharatNet.
Geopolitical Context & ‘Vyaparik Rashtravad’
Singh observed that global trade has shifted away from frictionless, ideology-neutral commerce toward a period of “Vyaparik Rashtravad” (commercial nationalism). With Western policies like the US CHIPS Act and the EU’s Carbon Border Adjustment Mechanism (CBAM) reshaping industrial dynamics, global trade instruments now serve both economic and geopolitical purposes.
Highlighting India’s democratic foundations, world-leading digital public infrastructure, young workforce, and large consumer market, Singh urged Indian manufacturing not to view itself merely as a “China Plus One” fallback, but rather as a sovereign, trusted partner and a major engine of global economic growth.
