India’s FTAs May Drive Exports To USD 1 Tn By 2035: ASSOCHAM

New Delhi, Jul 31 (KNN) India’s recent free trade agreements (FTAs) could significantly boost exports, with shipments to nine partner countries projected to rise from USD 233 billion in 2025 to USD 511 billion by 2030 and further to USD 1 trillion by 2035, according to a study by ASSOCHAM.

The report, titled ‘India’s Recent FTAs: Trillion-Dollar Export Opportunities’, highlights the role of trade liberalisation and improved market access in driving export growth, The Economic Times reported.

High Tariff Cuts to Expand Market Access

The study notes that partner countries have offered tariff liberalisation of 99 per cent or more in terms of trade value, while India has secured reductions covering over 90 per cent of tariff lines. This is expected to provide wider access for Indian goods in global markets.

Combined with trade facilitation measures and government support to exporters, these developments are likely to strengthen India’s export performance.

Key Trade Partners Gain Importance

According to the report, the nine countries with which India has concluded trade agreements since 2020 account for around 39 per cent of India’s total trade in 2025, underlining their growing importance.

The study also emphasises the need to monitor global geopolitical developments and economic trends in partner countries to fully assess the gains from these agreements.

Experts Highlight Strategic Importance

R. M. Joshi, Vice Chancellor, Indian Institute of Foreign Trade (IIFT), said FTAs remain critical in an increasingly uncertain global trade environment, adding that India must build resilience to navigate shifting trade policies.

He also described the proposed India–EU trade agreement as a significant development, given the scale of engagement with multiple European nations.

Industry Calls for Competitiveness

Anil K. Agarwal, Past President, ASSOCHAM and President, COSMOS Group, highlighted that recent FTAs can help expand exports, attract investment, and strengthen India’s position as a competitive global economy. 

He stressed the need for industry to improve productivity, innovation, quality standards, and compliance with global norms.

Sectoral Opportunities and Outlook

Saurabh Sanyal, Secretary General, ASSOCHAM, noted that sectors such as engineering goods, electronics, pharmaceuticals, textiles, gems and jewellery, automotive products, and processed foods are well placed to benefit from expanded trade access.

He added that higher exports could support manufacturing growth, employment generation, and foreign exchange earnings.

S. P. Sharma, Chief Economist, ASSOCHAM, said that with favourable policies and global trade conditions, exports to FTA partners could increase by over USD 250 billion by 2030, reinforcing India’s long-term growth trajectory.

(KNN Bureau)