India's Exports Projection
Standard Chartered, in a recent report titled ‘Future of Trade: New opportunities in high-growth corridors,' predicts that India's exports of goods will experience substantial growth in the coming decade. The report highlights a projected annual growth rate of 7.5% for India's exports, reaching an impressive value of $773 billion by 2030. This estimate outpaces the global average of 5%, positioning India as a key driver of global trade growth.
Emerging High-Growth Export Destinations
Among the highest-growing export destinations for India, the report identifies Turkiye, Vietnam, and Indonesia. These countries are expected to offer significant opportunities for India's export market. With their robust economies and increasing demand for Indian goods, these nations are projected to contribute to India's export growth trajectory.
Imports from China and Export Volume
The report estimates that by 2030, India's imports from China will reach $212 billion, reflecting a Compound Annual Growth Rate (CAGR) of 8%. On the other hand, India's exports to China are projected to amount to $49 billion. Furthermore, in terms of export volume, the United States, Mainland China, and the United Arab Emirates are anticipated to be India's key trading partners.
Sector Composition in India's Exports
The report indicates that metals and minerals will account for 31% of India's exports in 2030. Additionally, textile and apparel exports are projected to make up 15% of India's total exports. These sectors are poised for significant growth and will play a vital role in shaping India's export landscape.
Regional Trade Growth Outlook
According to the report, global trade is expected to reach $32.6 trillion by 2030, with a growth rate of 5%. Notably, trade corridors anchored in Asia, Africa, and the Middle East are set to outpace the global trade growth rate by up to four percentage points. This trend will drive the combined trade volume in these regions to $14.4 trillion, accounting for 44% of global trade.
India's FTAs Boost Competitiveness
The report acknowledges the recent Free Trade Agreements (FTAs) between India and the United Arab Emirates and Australia, which have further enhanced India's competitiveness as a manufacturing and export powerhouse. These FTAs open up new avenues for Indian exporters and strengthen India's position in the global trade landscape.
India's exports of goods are poised for remarkable growth, outperforming the global average. The projected increase in exports to key destinations such as Turkiye, Vietnam, and Indonesia, coupled with India's FTAs and the promising growth outlook of trade corridors, underscores India's potential as a major player in the global trade arena.