From mint · Rajendra Kumar Saxena · · 1m
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.
In brief
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 billion to GDP by 2035 and increase exports by 6.2% through improved market access and supply chain integration. Originally reported by mint.
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”
The essence
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.
