India will position itself as the third country with the greatest absolute trade expansion between 2024 and 2029, behind only China (12%) and the United States (10%), according to the DHL Trade Atlas 2025 report, prepared in collaboration with the Stern School of Business at New York University. This analysis highlights India's crucial role in international trade, contributing to 6% of global growth projected during this period.
Accelerated and sustained growth
The report highlights that India, which ranked 2024th among nations by trade volume in 13, has experienced a compound annual growth of 5.2 % between 2019 and 2024, far exceeding the global average of 2%. This pace is expected to accelerate to a 7.2 % annually over the next five years, consolidating its position as a major driver of global trade.
RS Subramanian, Senior Vice President, South Asia, DHL Express, said: “India's rapid trade expansion reflects both its solid macroeconomic growth and its growing share of international trade. While China is perceived as a more trade-oriented economy, India's trade intensity exceeds China's when goods and services are considered.".
Foreign investment and diversification of supply chains
The report also highlights significant commitments of foreign direct investment to India, particularly in the manufacturing sector. In 2023, India was the second world destination for greenfield investments after the United States, reinforcing its role as a key hub for connecting Eastern and Western markets.
Ken Lee, CEO Asia Pacific at DHL Express, said: “With the continued diversification of supply chains transforming the trade landscape, Asia has emerged as a key player in the global marketplace. However, companies must remain adaptable and innovative in the face of global economic uncertainties.".
Regional and global projection
In addition to India, emerging economies such as Vietnam, Indonesia, and the Philippines will also be key drivers of global trade growth. Among the major regions, South Asia and Southeast Asia will lead trade volume growth with CAGRs between 2017 and 2018. 5% and 6%, surpassing other regions such as Europe and North America.
Steven A. Altman, senior fellow at NYU Stern, concluded: “Although geopolitical challenges persist, global trade has demonstrated remarkable resilience due to its economic and social benefits. This pattern is likely to continue even in the face of potential tariff increases by the United States.".
Perplexity's response: pplx.ai/share
Any questions about this news?
Talk to Coexia, the AI of the foreign trade
