India’s expanding network of free trade agreements (FTAs) could add $140 billion to $170 billion to the country’s GDP by 2035, according to a report by Bloomberg Economics. The agreements could also help India reduce its dependence on the US market and offset the impact of higher American tariffs.

The report estimates that FTAs already in force could increase India’s GDP by 1.2% by 2035 compared with the baseline forecast. If agreements with the European Union and New Zealand are implemented from 2027, the economic gain could reach approximately $140 billion.

A potential trade deal with the US could add further growth. Agreements with the Eurasian Economic Union, Gulf Cooperation Council and Israel could raise the estimated gain to around $170 billion.

FTAs Could Cushion the Impact of US Tariffs

Higher US tariffs pose challenges for Indian exporters. Bloomberg Economics estimates that the average tariff on Indian goods entering the US has risen to 11.6%, compared with 2.4% in 2024.

The report projects that these tariffs could reduce Indian goods exports to the US by around 20% by 2035. However, the overall economic impact may remain limited as India expands exports to other markets.

New trade partnerships could help businesses diversify their export destinations, attract foreign investment and improve productivity. They could also create opportunities for Indian manufacturers to participate more actively in global value chains.

India Expands Its Global Trade Partnerships

India is pursuing additional trade agreements to strengthen its international economic relationships. Commerce and Industry Minister Piyush Goyal has said the country is negotiating with several groups of countries and individual nations representing a combined GDP of around $15 trillion.

According to the report, India’s trade volumes, including imports, could rise by around 10% by 2035 compared with 2024 as more agreements take effect. Greater market access could help businesses obtain new products, services and production inputs.

Economic Growth Outlook Remains Positive

Bloomberg Economics projects India’s economic growth at 6.9% in 2026 and 7.4% in 2027. The report also highlights artificial intelligence as a potential driver of productivity, estimating that AI could add 0.4–0.9 percentage points to annual GDP growth.

Overall, India’s expanding FTA network could strengthen exports, attract investment and support long-term economic growth. However, the projected benefits will depend on the implementation of proposed agreements, improved market access and the ability of Indian businesses to use trade concessions effectively.