India set to propel global trade growth, new report finds

A Rising Power in the Global Arena

The report reveals that India’s trade performance has been nothing short of remarkable. Despite ranking as the 13th largest trading nation in 2024, the country recorded a compound annual growth rate of 5.2 per cent in trade from 2019 to 2024—a significant leap compared to the global expansion rate of 2 per cent. Analysts attribute this robust growth to India’s strong macroeconomic fundamentals and its increasing integration into global trade networks.

Emerging Economies Take Center Stage

India is not the only emerging nation making waves on the global stage. Alongside other rapidly growing economies such as Viet Nam, Indonesia, and the Philippines, India is set to feature among the top 30 nations in terms of both the speed and scale of trade growth. These countries are carving out pivotal roles in an evolving global landscape, reinforcing their status as essential players in international trade.

A Shift Toward a Multipolar Trade Environment

The DHL report also highlights a broader trend that points to a diversifying global trade environment. Trade transactions involving countries that are not firmly aligned with either the United States or China have grown from 42 per cent in 2016 to 47 per cent in 2024. Moreover, the share of trade with nations deemed neutral—those not leaning towards either economic giant—has also increased, rising from 15.4 per cent to 17.5 per cent over the same period.

This trend signifies a gradual but decisive shift towards a multipolar trade framework where nations like the United Arab Emirates, Brazil, and Mexico are emerging as influential participants. It also underscores a move away from the binary U.S.-China economic rivalry that has long dominated global trade dynamics.

Looking Ahead

With its strong economic fundamentals and an increasingly prominent role in international markets, India appears well-positioned to sustain its ascent as one of the fastest-growing trading nations. As global trade networks continue to expand and diversify, India’s trajectory is set to solidify its status as a major driver of global commerce in the coming years.

As the world economy navigates a complex and rapidly changing landscape, the rise of India and its peers offers a promising glimpse into a future defined by more balanced and multipolar global trade relations.

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