New Delhi: As the world enters a new era of global trade dynamics, India is poised to play a pivotal role, contributing significantly to global economic shifts. Over the next five years, India is expected to drive approximately 6% of the world’s trade growth, positioning itself as a major force after China and the United States. This rise is part of a broader trend where emerging economies like Vietnam, Indonesia, and the Philippines are also leading trade expansion.
India’s ascent in global trade is remarkable, given its ranking as the 13th largest trading nation in 2024. However, its trade volume grew at a compound annual rate of 5.2% from 2019 to 2024, far surpassing the global average of 2%. This rapid growth reflects both India’s robust macroeconomic performance and its increasing engagement in international trade. Notably, India now ranks third globally in trade growth, behind only China and the U.S., contributing 6% to global trade expansion.
Positioning itself as a critical trade hub connecting the East and West, India is attracting significant foreign investment, particularly in its manufacturing sector. In 2023, the country ranked second worldwide as a destination for greenfield foreign direct investment, with manufacturing being a major focus. This investment trend, combined with India’s strategic location, bolsters its role in global commerce.
Asia, including India, Vietnam, Indonesia, and the Philippines, is expected to outperform other regions in trade growth. This dominance is supported by ongoing supply chain diversification, which reinforces Asia’s status as a key player in the global market. As global trade continues to evolve, these emerging economies are set to shape the future of international commerce.
