India Set to Fuel 6% of Global Trade Expansion in 5 Years, Achieve 3rd Position: Report
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Synopsis
According to a new report, India is projected to drive 6% of global trade growth in the next five years, securing third place globally after the US and China. The report highlights India's rising trade volume and its critical role as a bridge between the East and West.
Key Takeaways
- India to drive 6% of global trade growth.
- Expected to achieve third place behind US and China.
- Compound annual trade growth rate to rise from 5.2% to 7.2%.
- Asia's trade outlook remains positive.
- India recognized as a vital global trade hub.
Mumbai, March 20 (NationPress) India is projected to contribute 6 percent of global trade growth over the next five years, securing third place globally, following the US and China, according to a recent report released on Thursday.
In the upcoming five years, India is expected to maintain its third-place ranking in terms of scale while advancing 15 positions to the 17th place in speed, as its compound annual trade volume growth rate increases from 5.2 percent to 7.2 percent, as detailed in the ‘DHL Trade Atlas 2025’.
“Furthermore, India is anticipated to generate 6 percent of the world's trade growth, trailing only China at 12 percent and the United States at 10 percent,” the report indicated.
The report, released by DHL and the New York University Stern School of Business, offers an in-depth examination of key trends shaping global trade.
Asia’s trade forecast continues to be optimistic, reflecting a global trade growth rate that is expected to outpace the previous decade in the next five years.
Notably, several nations in Asia—including India, Vietnam, Indonesia, and the Philippines—are predicted to experience particularly robust growth. Both South Asia and Southeast Asia are also expected to exceed other regions in trade growth.
“As we look toward the future of trade in Asia, it is evident that trade growth has demonstrated remarkable resilience despite recent disruptions. With ongoing supply chain diversification reshaping the commerce landscape, Asia has firmly established itself as a pivotal player in the global market,” stated Ken Lee, CEO of Asia Pacific at DHL Express.
Discussing India’s expanding role in global trade, R S Subramanian, SVP of South Asia at DHL Express, noted that the report positions India as a vital hub connecting the east and west.
“While we expect trade volume growth and an increase in our share of global trade, we remain cautiously optimistic about the future, given the general volatility of the global economy,” he commented.
The Trade Atlas also highlighted a shift in the center of gravity of world trade. Since 2000, the distribution of trade conducted by major geographic regions has changed significantly, with the most pronounced shifts observed in Asian economies.
