Bloomberg Economics projected in a published report that broadening India's network of free trade agreements could lift the country's output by between $140 billion and $170 billion, measured in constant 2025 US dollars, by 2035. The analysis found that deals already in effect point toward a 1.2 per cent GDP gain relative to the baseline, a figure that climbs to 1.7 per cent should agreements with the European Union and New Zealand take effect from 2027.

Projections from Bloomberg Economics placed a potential US agreement at an additional 0.2 percentage points of growth, with a further 0.2-point lift possible should talks with the Eurasian Economic Union, the Gulf Cooperation Council, and Israel conclude within the coming years — a combination that would place overall GDP roughly 2.1 per cent above baseline levels, equivalent to around $170 billion, by 2035.

According to the document, India's economy holds a position from which it can manage the shocks of newly imposed US tariffs, with broadening trade agreements opening pathways to untapped markets, drawing in foreign investment, and lifting productivity, even as global capital narrows its geographic concentration.

Bloomberg Economics placed the average levy on Indian goods entering the American market at 11.6 per cent, up from 2.4 per cent in 2024, with the firm's projections indicating that, by 2035, those duties could reduce Indian goods exports to the United States by around a fifth. With under two per cent of total production tied to American buyers, the document indicated that growth in other export destinations could offset any shortfall, and that any drag on gross domestic product would be too modest to measure.

Piyush Goyal, who holds the Commerce and Industry portfolio, has noted that negotiations are open with eight or nine country groupings — a bloc whose combined output sits near $15 trillion — as India looks to widen its network of export partners at a point when its single largest trading relationship is under strain and disruptions to supply chains have followed from conflict in the region. Nine trade agreements covering 38 developed-country partners were brought into force by India across a span of four and a half years. Taken together, the nine pacts span economies whose output reaches $60 trillion, Goyal noted.

The report laid out a two-year growth trajectory for India of 6.9 per cent in 2026 and 7.4 per cent in 2027. Forecasters expect the rate of consumer price growth to climb from 2.2 per cent this year to 4.5 per cent in 2026, reaching 5.3 per cent by 2027. Projections place the repo rate at 5.50 per cent through 2026 and 5.75 per cent through 2027, building on a baseline of 5.25 per cent pencilled in for 2025.

Trade volumes — imports included — were projected by the document to grow at a faster pace once those agreements took effect, with total flows potentially running about 10 per cent above 2024 levels by 2035. The document added that household and business access to a wider range of goods and services, alongside deeper manufacturer participation in global value chains, would push import activity upward in tandem.

According to the document, cross-border investment is narrowing its focus toward artificial intelligence and semiconductors while tilting geopolitically, with money moving between adversarial nations running roughly 40 per cent below the volumes recorded among allied ones. The findings also indicated that advances in factor productivity driven by artificial intelligence could lift India's annual GDP expansion by between 0.4 and 0.9 percentage points.