# US Tariffs Shift Trade: India's FTAs Boost GDP

> India's trade deals could add $140 billion to GDP by 2035 as US tariffs reshape global supply chains.
- Title: US Tariffs Shift Trade: India's FTAs Boost GDP · mint
- Summary: India's trade deals could add $140 billion to GDP by 2035 as US tariffs reshape global supply chains. India's expanding free trade agreements may add $140…
- Keywords: bloomberg economics, gdp, free trade agreements, us tariffs, india, exports, global supply chains, news, Tariffs, Shift, Trade, India's
- Source: mint — https://livemint.com/economy/us-tariffs-accelerate-global-trade-realignment-how-india-s-ftas-could-boost-gdp-11791807553160.html
- Author: Rajendra Kumar Saxena
- Published: 2026-10-12T15:40:21+00:00
- Read time: 1 min
- Topics: bloomberg economics, gdp, free trade agreements, us tariffs, india, exports, global supply chains, news
## Bloomberg Estimates
Bloomberg Economics reports india's expanding free trade agreements could add $140 billion to gdp by 2035 and boost exports by 6.2%.

> using a large-scale model of the global economy developed by the world trade organisation, we estimate these agreements could add about $140 billion to india's gdp in 2035
## US Tariff Impact
US tariffs rose to 10.7% in august 2026 from 2.3% in 2024, targeting automobiles and metals.

> the average us tariff rate stood at 10.7% in august, compared with 2.3% in 2024
## Trade Agreement Growth
India signed ftas with efta, uk, oman, new zealand and concluded eu negotiations in 2025-26.

> during 2025-26, agreements with the european free trade association, the united kingdom and oman entered into force
## US-India Negotiations
Trump and modi announced bilateral trade talks in february 2025 but faced 25% us tariffs on russian oil.

> president trump and prime minister narendra modi announced plans for a bilateral trade agreement in february 2025
## Global Trade Shifts
Economies diversify trade relationships as us tariffs accelerate global supply chain realignment.

> in response, economies are seeking to diversify their trade relationships and accelerate negotiations with new partners
## Future Benefits
Productivity gains from manufacturing reforms and worker transitions could amplify gdp growth by 2035.

> we also consider two scenarios that could amplify the gains: realising further productivity benefits from a decade of reforms to strengthen manufacturing competitiveness
## Key takeaway

India's expanding free trade agreements may add $140 billion to GDP by 2035 and increase exports by 6.2% through improved market access and supply chain integration.