India Set to Contribute 6% to Global Trade Growth

India is projected to play a significant role in global trade growth over the next five years, contributing approximately 6% to the world’s trade expansion. A joint report by DHL and the New York University Stern School of Business indicates that India will trail behind China at 12% and the United States at 10%. The DHL Trade Atlas 2025 forecasts that India will maintain its third-place rank on the scale dimension and move up 15 positions to 17th place on the speed dimension, with a compound annual trade volume growth rate rising from 5.2% to 7.2%.

Despite being the 13th largest participant in international trade in 2024, India’s trade volume saw a notable compound annual growth rate of 5.2% from 2019 to 2024, surpassing the global trade growth rate of 2.0%. The report points out that India’s trade intensity in goods and services is comparable to China, indicating a strong focus on trade and economic expansion. Moreover, the report highlights the surge in foreign investment commitments in India’s manufacturing sector, laying a foundation for future trade growth.

In addition to India, emerging Asian economies like Vietnam, Indonesia, and the Philippines are expected to experience robust trade growth. The South Asia and Southeast Asia regions are predicted to outperform other regions in terms of trade expansion. Notably, India ranked second globally as a destination for announced greenfield foreign direct investment in 2023, with manufacturing emerging as a key area for investment. The report underscores the positive outlook for India’s future trade growth, underpinned by significant investments in the manufacturing industry.

Source