India is projected to account for 6% of global trade growth in the next five years, ranking third behind China and the US. The latest DHL Trade Atlas indicates significant improvement in India’s trade dimensions and highlights substantial foreign investment in manufacturing. Emerging Asian economies are also expected to witness strong growth, with Asia confirming its position as a vital player in global trade.

India is poised to play a significant role in global trade over the next five years, contributing approximately 6% to worldwide trade growth. This positions India behind China, which is anticipated to contribute 12%, and the United States, expected to add 10%, according to a report by DHL and the New York University Stern School of Business.

The DHL Trade Atlas 2025 report indicates that India is expected to maintain its third-place ranking, while improving its speed dimension ranking by 15 spots to 17th. The country’s compound annual trade volume growth rate is projected to rise from 5.2% to 7.2%. Currently, India ranks as the 13th largest participant in international trade but has shown consistent growth in trade volume.

The report emphasizes that India’s rapid trade growth is driven by both robust macroeconomic progress and a heightened engagement in international trade. R.S. Subramanian of DHL Express remarked, “The Trade Atlas underlines India’s rapid expansion in global trade, positioning the country as a critical hub connecting the east and west.”

Moreover, India’s goods trade-to-GDP ratio was reported to be nearly on par with China’s in 2023, suggesting a competitive momentum in trade intensity. The report highlights substantial foreign investment commitments in India’s manufacturing sector as a key factor driving expectations for future trade growth.

In terms of foreign direct investment, India ranked second globally in 2023, following the United States, reflecting its attractiveness as a destination for such investments, particularly in manufacturing. The anticipated robust growth is also noted for emerging Asian economies, with regions like South and Southeast Asia expected to outpace other areas in trade expansion.

Ken Lee, CEO of DHL Express Asia Pacific, commented, “With the ongoing diversification of supply chains that continues to reshape the commerce landscape, Asia has steadfastly emerged as a key player in the global market.”

In conclusion, India’s anticipated contributions to global trade growth, rising investment in its manufacturing sector, and its competitive trade ratios underscore the country’s emerging status as a significant player on the world stage. While growth remains promising, the report advises caution in response to the volatile global economic environment.

Original Source: www.ndtv.com

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