India's trade pacts could boost GDP by $170 billion by 2035

India's ongoing negotiations and implementation of bilateral and regional free trade agreements could significantly strengthen the country's economic growth trajectory over the next decade, with cumulative GDP gains potentially reaching $170 billion by 2035.

According to analysis by Bloomberg Economics, the direct and indirect benefits flowing from these trade pacts could translate into a 2.1 per cent boost to GDP, underscoring the strategic importance of India's trade diversification efforts. The calculations factor in increased export competitiveness across multiple sectors and improved market access for Indian businesses.

The potential gains assume India successfully leverages its growing trade relationships across Asia, Africa, and other regions. These agreements are positioned to create new demand for Indian goods and services while simultaneously reducing India's dependence on any single market or trading partner.

The timing of these developments takes on added significance amid global trade uncertainties. As protectionist measures loom in some quarters, India's diversified trade portfolio could prove instrumental in maintaining robust export growth and shielding the domestic economy from external shocks.

Economists note that realizing the full potential of these trade agreements will depend on improvements to India's logistics infrastructure, regulatory harmonization, and capacity-building initiatives across exporting sectors.