New Delhi: India’s strategic pivot towards expanding its network of Free Trade Agreements (FTAs) under Prime Minister Narendra Modi’s administration is poised to significantly transform the nation’s economic landscape. According to a recent report by Bloomberg Economics, these trade pacts could add approximately $140 billion to India’s Gross Domestic Product (GDP) by the year 2035.
Using a large-scale global economy model developed by the World Trade Organization (WTO), the report estimates that the successful implementation of current and upcoming trade deals will elevate India’s baseline GDP by nearly 1.7 per cent over the next decade.
India has actively pursued and signed trade agreements with key partners in recent years. Pacts with the European Free Trade Association (EFTA), the United Kingdom, and Oman are currently rolling out, complementing the agreements successfully established with Australia and the United Arab Emirates in 2022. Additionally, New Delhi has signed an FTA with New Zealand and concluded talks with the European Union.
These agreements are expected to make Indian products more competitive globally, reduce import costs for domestic consumers and businesses, and deeply integrate local manufacturers into the global supply chain. If the FTAs are fully implemented, India’s export baseline could jump by approximately 10 per cent by 2035.
A crucial factor contributing to this projected growth is increased Foreign Direct Investment (FDI). The report factors in expected FDI influxes, including an estimated $100 billion from the EFTA deal over the next 15 years and $20 billion from the New Zealand agreement, further boosting domestic productivity.
The economic gains are expected to be amplified by domestic reforms. The central government has introduced several measures to attract manufacturers, such as cutting corporate taxes, providing targeted subsidies, and investing heavily in infrastructure to lower logistical costs.
As global trade dynamics shift and major economies like the US adopt more protectionist stances, India is leveraging its ambitious industrial strategy and expansive trade agenda to position itself as a central hub for manufacturing and global commerce.