India’s growing network of free trade agreements (FTAs) could significantly boost its economy, adding $140-170 billion to its GDP by 2035, according to a Bloomberg Economics report. The analysis suggests that existing FTAs will raise GDP by 1.2% by 2035, with an additional 0.5% gain if agreements with the EU and New Zealand are implemented starting in 2027. A potential US deal could add another 0.2 percentage points, while concluded negotiations with the Eurasian Economic Union (EAEU), Gulf Cooperation Council (GCC), and Israel could further increase GDP by 0.2 percentage points, totaling a 2.1% rise by 2035.
The report highlights that India’s economy is well-positioned to withstand disruptions from US tariffs, which have risen to an average of 11.6% on Indian goods, up from 2.4% in 2024. By 2035, these tariffs are expected to reduce Indian goods exports to the US by about one-fifth. However, the impact on India’s overall economy should be minimal, as less than 2% of its output relies on US markets, and stronger exports to other regions will help offset the losses.
India is currently negotiating FTAs with at least eight to nine more countries and groups, accounting for an additional $15 trillion in GDP, according to Commerce and Industry Minister Piyush Goyal. The country has already concluded nine FTAs with 38 developed nations in the past four and a half years, covering economies with a combined GDP of $60 trillion.
The report also forecasts India’s growth rates at 6.9% in 2026 and 7.4% in 2027, with inflation rising from 2.2% in 2025 to 4.5% in 2026 and 5.3% in 2027. The central bank's repo rate is expected to reach 5.50% in 2026 and 5.75% in 2027, up from 5.25% in 2025. Additionally, trade volumes, including imports, are projected to increase by around 10% by 2035 compared to 2024, as households and businesses gain access to new products and services.