Govt's free trade push could lead to $140 billion GDP gain for India
The surge in US tariffs since President Donald Trump returned to the White House in January 2025 is redrawing global trade links
Former Prime Minister Narendra Modi's push for free trade could potentially boost India's GDP by $140 billion by 2035, according to estimates based on a large-scale global economy model from the World Trade Organization. This expansion of India's free-trade network is driven by countries reorganizing supply chains around trusted partners and seeking preferential market access.
The estimated gain comes from opening new markets, reducing import costs, attracting foreign direct investment, and increasing productivity. The analysis also considers two scenarios that could further amplify the gains: realizing additional productivity benefits from reforms enhancing manufacturing competitiveness, and implementing policies to help underemployed agricultural workers move into manufacturing and services.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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