India’s exports of goods are projected to grow at an average annual rate of 7.5 per cent (outpacing the global average of 5 per cent) to reach USD 773 billion by 2030 from USD 401 billion in 2021, said Standard Chartered in a report.
In a research report titled ‘Future of trade: New opportunities in high-growth corridors’, the bank said that India will be a key driver of this global trade growth.
Trade corridors anchored in Asia, Africa and the Middle East will outpace the global trade growth rate up to four percentage points, driving combined trade volume in these regions to USD 14.4 trillion and accounting for 44 per cent of global trade by 2030.
“Exports of goods to Turkiye, Vietnam and Indonesia are among some of the highest-growing, while exports of goods to the US, Mainland China and the UAE will be the highest by volume,” it added.
India’s FTAs with the UAE and Australia have recently come into force – further increasing India’s competitiveness as a manufacturing and export powerhouse.
India: export sectors to watch
The report added that India is expected to grow its exporting sectors by supporting innovation and capacity expansions, as well as building sector ecosystems. At 0.45, India’s exports are more diversified than the global average of 0.68.
By 2030, increased adoption of digital supply chain finance solutions could drive up exports by 7.5 per cent in the 13 surveyed markets, an uplift of USD 791 billion.
Digital supply chain finance solutions can also help drive greater financial inclusion and participation for small and medium-sized enterprises (SMEs), help companies track adherence to ESG criteria and reduce the risk of fraud and cost of monitoring, the report added.
Michael Spiegel, Global Head, Transaction Banking, Standard Chartered said: “Global trade is set drive the next decade of growth. Digital supply chain finance solutions will play a game-changing role in achieving these goals and enable sustainable trade growth across developing economies.”
Gaurav Bhatnagar, Head of Trade and Working Capital, India and South Asia said that as the global economy fully reopens and cross-border trade accelerates, the South Asia region is at the heart of global trade growth and is perfectly positioned to be an export powerhouse driven by India and its dominance in key sectors like textiles, pharmaceuticals etc.