Shifting international trade policies and a surge in protective tariffs are prompting nations to reconfigure supply chains around trusted partners. Amid these global realignments, India is actively broadening its network of bilateral agreements to secure preferential market access and expand commercial ties across multiple regions.
Economic models suggest that trade pacts already in force, along with others under negotiation, could generate significant economic expansion for the country over the next decade. Analysts estimate that implemented agreements could lift economic output, while additional treaties and prospective deals could expand total gains further by the year 2035.
Recent trade developments include deals with the European Free Trade Association, the United Kingdom, and Oman entering into force. These add to previous arrangements with Australia and the United Arab Emirates. Furthermore, negotiations have concluded with the European Union, and agreements have been signed with New Zealand, while talks continue with other regional blocs.
At the same time, commercial relations with the United States have experienced friction following higher reciprocal duties and levies linked to energy purchases. Although tensions have eased and certain levies have been adjusted, ongoing discussions aim to establish an interim framework, even as comprehensive terms remain challenging to finalise.
To capture these commercial advantages, economic models evaluate several mechanisms, including the elimination of bilateral tariffs, a reduction in non-tariff measures over time, and productivity enhancements driven by foreign direct investment commitments from partners such as the European Free Trade Association and New Zealand.
Beyond external trade agreements, domestic reforms and labor market transitions could further amplify these economic benefits. Enhancing manufacturing competitiveness and facilitating the movement of underemployed agricultural workers into industrial and service sectors remain key factors in strengthening long-term growth and productivity.
Realising the full potential of these commercial strategies depends on sustained reform momentum, reliable access to critical inputs, and effective implementation of national industrial policies. Policymakers and corporate leaders continue to monitor how global trade dynamics will influence domestic manufacturing and export volumes.
Key numbers
- GDP addition from trade agreements: $140 billion
- Average US tariff rate in August: 10.7%
- EFTA foreign direct investment commitment: $100 billion
- New Zealand foreign direct investment commitment: $20 billion
- GDP addition with further trade conclusions: $170 billion
What a board might note
- How might the $140 billion GDP boost projected for 2035 influence corporate investment and capital allocation strategies?
- What impact will the 10.7% average US tariff rate have on export margins and supply chain planning for goods destined for the American market?
- How does the $100 billion foreign direct investment commitment from the European Free Trade Association over 15 years affect sectoral growth projections?
- What steps are required to manage the transition of underemployed agricultural workers into manufacturing and services to capture potential productivity gains?
Source: Economic Times, 13 October 2026. This is a summary of a news report, published as general information. It is not legal, tax or investment advice.
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