India is poised to play a pivotal role in global trade expansion over the next five years, contributing an estimated 6% to worldwide trade growth, according to the DHL Trade Atlas 2025 report. This positions India as the third-largest driver of trade growth, following China at 12% and the United States at 10%.
The report highlights India’s rapid trade growth, fueled by its robust macroeconomic performance and increasing integration into international trade. Between 2019 and 2024, India’s trade volume grew at a compound annual rate of 5.2%, significantly outpacing the global average of 2%. This trend is expected to continue, with India projected to rise from 32nd to 17th place in terms of trade speed while maintaining its third position in trade scale.
Key factors driving this growth include India’s expanding export portfolio, which encompasses electronic goods, textiles, and agricultural products, as well as its strategic trade partnerships with nations like the US, UAE, and China. The report also underscores India’s growing trade intensity, which now rivals that of China when considering both goods and services.
As global trade shows resilience amid geopolitical uncertainties, India’s role as a critical hub connecting East and West is set to strengthen. This remarkable trajectory underscores India’s potential to shape the future of global commerce.