India is poised to make significant strides in global trade, contributing 6% to the world’s trade growth over the next five years, according to the latest DHL Trade Atlas 2025 report. This positions India as the third-largest driver of global trade growth, following the United States at 10% and China at 12%.
Rapid Trade Expansion
The report highlights India’s remarkable trade volume growth, which has risen at a compound annual rate of 5.2% from 2019 to 2024, outpacing the global average of 2%. By 2030, India’s trade volume growth rate is expected to accelerate to 7.2%, reflecting its increasing integration into international trade networks.
Key Factors Driving Growth
India’s rapid trade expansion is attributed to its robust macroeconomic growth, rising manufacturing capabilities, and significant foreign direct investment (FDI). In 2023, India ranked second globally as a destination for announced greenfield FDI, with manufacturing emerging as the most prominent sector for investment. The report also notes that India’s trade intensity, which includes both goods and services, has surpassed China’s in recent years.
Regional Leadership
Emerging Asian economies, including India, Vietnam, Indonesia, and the Philippines, are expected to lead global trade growth. The diversification of supply chains and India’s strategic position as a hub connecting the East and West further bolster its trade prospects.
Conclusion
India’s ascent in global trade underscores its growing influence on the world stage. As the country continues to attract investments and expand its manufacturing base, it is set to play a pivotal role in shaping the future of international commerce. With a focus on sustainable growth and innovation, India is well-positioned to capitalize on its trade potential in the coming years.
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