PM Modi's free trade push could lead to $140 billion GDP gain for India
Economic Times 1 hr ago·13 Oct 2026, 3:42 am
India’s government under Prime Minister Narendra Modi is accelerating its free‑trade agenda, seeking new agreements to broaden export destinations and draw foreign investment. A World Trade Organization‑based model suggests that the deals already signed and those under negotiation – including pacts with the European Union and New Zealand – could add roughly $140 billion to India’s GDP by 2035, about 1.7% above the baseline scenario.
For investors, a larger trade footprint can translate into higher earnings for export‑oriented companies and greater capital inflows, which may lift overall market sentiment. Sectors such as pharmaceuticals, IT services, and consumer goods that rely on overseas demand could see a modest upside.
The next steps to watch are the completion of pending FTAs, especially the EU and New Zealand accords, and any policy shifts in the United States that could affect India’s trade strategy. Monitoring the timeline for ratification and the rollout of related domestic reforms will help gauge when the projected growth benefits might start to materialise.
Excerpt from Economic Times
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…Read the original at Economic Times
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- Category: Economy.
- AI reads the tone as positive (potentially bullish) for the stock.
- Flagged as a high-impact, market-moving story.
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