India's Meteoric Rise: Set to Drive Global Trade Growth by 2025

India is poised to become a key driver of global trade growth, ranking as the third largest in terms of absolute expansion by 2025. Spearheading a trend of diversified global trade, India's surge is supported by its robust economic fundamentals and strategic global trade participation.

India is on track to emerge as a pivotal force in global trade over the next five years, according to the DHL Trade Atlas 2025. The report ranks India third in absolute trade expansion, accounting for 6% of the expected additional global trade, following only China and the United States with 12% and 10% respectively.

The document highlights India's role in international trade alongside emerging economies such as Viet Nam, Indonesia, and the Philippines, which are anticipated to feature among the top 30 nations in both trade speed and scale. 'India is set to be distinct as having the third largest absolute trade growth,' the report states.

India's trade performance has been impressive, ranking as the 13th largest trading nation in 2024 and achieving a compound annual trade growth rate of 5.2% from 2019 to 2024, far surpassing the global expansion rate of 2%. The report links India's trade success to strong macroeconomic performance and enhanced global trade network participation.

Furthermore, a notable trend in the report is the rising share of global trade by countries not closely aligned with the U.S. or China, increasing from 42% in 2016 to 47% in 2024. Nations like UAE, India, Viet Nam, Brazil, and Mexico have significantly amplified their global trade roles.

Trade with neutral countries has also grown, signaling a shift towards a more diversified trade environment, with the neutral share rising from 15.4% in 2016 to 17.5% in 2024. With India's strong economic positioning, the future looks promising for the country to solidify its status as a rapidly growing trading nation.

(With inputs from agencies.)