PM Modi's free trade push could lead to $140 billion GDP gain for India
A more protectionist US could unexpectedly benefit India as New Delhi expands its free-trade agreements (FTAs) to diversify export markets and attract investment. A World Trade Organization-based model estimates that India’s concluded and proposed trade deals, including agreements with the EU and New Zealand, could add about $140 billion to GDP by 2035, lifting it 1.7% above the baseline.
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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- Govt's free trade push could lead to $140 billion GDP gain for India business-standard.com
