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India's merchandise exports to countries covered under its recent free trade agreements (FTAs) could reach USD 1 trillion by 2035, according to a new report by industry body ASSOCHAM, which said the agreements have opened up significant opportunities for Indian exporters in some of the world's largest markets.
The report, 'India's Recent FTAs: Trillion-Dollar Export Opportunities', estimates that merchandise exports to nine recent FTA partner countries could rise from USD 233 billion in 2025 to nearly USD 511 billion by 2030, before reaching around USD 1 trillion by 2035. The report attributes the growth to increased market access, stronger manufacturing capabilities and better utilisation of trade agreements. According to the report, the nine FTA partner countries together import goods worth more than USD 13 trillion annually, while India's exports account for less than 2 per cent of that import demand, highlighting the scope for expanding India's presence in these markets. It also noted that these countries account for about 39 per cent of India's merchandise trade. Launching the report, ASSOCHAM Secretary General Saurabh Sanyal said, "India's recent Free Trade Agreements have the potential to become a key driver of export growth. Sectors such as engineering goods, electronics, pharmaceuticals, textiles, gems and jewellery, automotive products and processed foods are well placed to benefit. Higher exports can support manufacturing, investment, employment and foreign exchange earnings, strengthening India's long-term growth ambitions." The report also pointed out that India's top 100 export products currently account for exports of about USD 324 billion to these markets, compared with their combined imports of around USD 6.4 trillion, indicating significant untapped potential. The report also called for continued improvements in logistics, trade facilitation and support for exporters, particularly micro, small and medium enterprises (MSMEs), to maximise gains from the trade agreements. The ASSOCHAM projection comes as the Centre has set ambitious export goals of its own. The government has targeted USD 2 trillion in overall exports by 2030-31, comprising USD 1 trillion each in merchandise and services exports. In contrast, ASSOCHAM's latest report estimates that merchandise exports to India's nine recent FTA partner countries alone could approach USD 1 trillion by 2035, underscoring the scale of opportunity these trade agreements could create. (ANI)
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