India Embraces Free Trade: A Boost to GDP and Economic Growth
India’s move towards free trade is expected to have a significant impact on its economy, with projected GDP growth and job creation. The country’s nominal GDP is expected to reach $5.2 trillion by 2030, with a GDP boost of $15 billion in bilateral trade with the UK. The digital economy is also expected to contribute $1 trillion to India’s GDP by 2025.
Sectoral Gains
The new trade policies are expected to benefit various sectors, including textiles and apparel, IT and services, and pharmaceuticals. Export volumes in these sectors are expected to rise, with a corresponding increase in jobs and revenue.
Market Reaction
The stock market is expected to react positively to the new trade policies, with the Nifty-500 index projected to rise 2-3% over the next 12 months. The manufacturing-sector index is expected to outperform the broader market, driven by PLI incentives and customs-deferral benefits.
Sources
The information in this article is based on data from various sources, including the International Monetary Fund, the World Bank, and India-Briefing.