India's Trade Thrived in Q4 2024, Surpassing Global Risks: UN Report
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Synopsis
According to a UNCTAD report, India's trade saw impressive growth in the last quarter of 2024, outperforming many developed nations despite global economic challenges. The country recorded significant increases in both imports and exports, particularly in services.
Key Takeaways
- India's trade growth outpaced many developed countries.
- Global trade expanded by $1.2 trillion in 2024.
- 8 percent quarterly increase in goods imports.
- Strong growth in services trade.
- Potential global economic slowdown ahead.
New Delhi, March 15 (NationPress) India's trade exhibited remarkable growth in the final quarter of 2024, as per a recent report from the United Nations Conference on Trade and Development (UNCTAD).
The report emphasizes that while global trade saw substantial expansion in 2024, several developed countries experienced contractions in their trade.
In contrast, India outperformed the global average, with both imports and exports on the rise.
According to the findings, global trade surged by nearly $1.2 trillion in 2024, reaching a total of $33 trillion, primarily fueled by a 9 percent growth in services trade and a 2 percent uplift in goods trade.
India's trade momentum remained robust in Q4 2024, with both merchandise and services trade showcasing positive growth.
During this period, the country reported an 8 percent quarterly increase in goods imports compared to the previous quarter.
On an annual scale, goods imports saw a rise of 6 percent, while goods exports also grew by 7 percent quarterly and 2 percent annually.
Services trade emerged as a significant growth sector for India. In Q4 2024, the nation experienced a 7 percent quarterly growth in services imports and a 10 percent annual rise.
Simultaneously, services exports grew by 3 percent quarterly and 10 percent annually, reflecting India's strong footing in IT and business services.
Nonetheless, the report cautions that the global economy may experience a slowdown in the near future. Early 2025 has observed a decline in demand for container shipping, suggesting weakened global trade.
The Shanghai Containerized Freight Index, which monitors shipping costs, has dropped, indicating reduced demand for goods globally.
Moreover, the Baltic Dry Index, which assesses shipping rates for raw materials like coal and iron ore, remains below 2024 levels.
Additionally, the report points out growing trade imbalances. The trade deficit in the United States has widened, while some nations have recorded increased trade surpluses.
Concerns surrounding geopolitical tensions and shifting trade policies could lead to further disruptions in 2025. Protectionist measures, such as new tariffs on specific products, might influence international trade dynamics.
Despite these obstacles, there are some encouraging signs. The anticipated easing of global inflation and India's consistent economic performance could bolster trade growth.
The report underscores that balanced policy decisions and international collaboration will be vital for sustaining trade stability.
