India’s rapidly expanding network of free trade agreements could add roughly $140 billion to its GDP by 2035, according to new modeling, as Prime Minister Narendra Modi’s government accelerates a trade strategy aimed at opening markets, lowering import costs and drawing in foreign investment.
Over the past four and a half years, India has concluded nine free trade agreements with developed economies, together representing a combined GDP of roughly $60 trillion, marking a sharp acceleration after years in which New Delhi had approached new trade deals cautiously.
India is on track to secure access to markets collectively worth some $85 trillion in GDP over the next 18 months as additional agreements move through negotiation, a pipeline that would further expand the reach of its trade network well beyond its traditional partners.
Proponents argue the gains would come through multiple channels: new export market access, reduced costs on imported inputs, stronger foreign direct investment flows, and productivity gains as Indian firms integrate more deeply into global supply chains. Separate estimates, including one putting the potential gain as high as $170 billion by 2035, suggest the agreements could also help cushion India's economy against the impact of US tariffs.
The push marks a notable shift in Indian trade policy, which for decades favored protecting domestic industry over deep liberalization. Officials have framed the expanding free trade agreement network as central to sustaining growth and positioning India as a bigger node in global trade and investment flows over the next decade.
