India has surpassed China on two critical parameters—export to GDP ratio and services export— regarding integration into the global market, as per a DHL Global Connectedness Report released on Wednesday.
The report, titled ‘New DHL Global Connectedness Report 2024,’ is a collaboration between DHL and New York University’s Stern School of Business.
According to the report, India’s exports-to-GDP ratio has exceeded China’s since 2021, and the country also leads in services trade intensity for both exports and imports.
The report highlights that India’s exports and imports as a share of GDP experienced a significant increase in 2021 and 2022. In particular, India’s exports of goods and services accounted for 23 percent of GDP (up from 19 percent in 2020), while imports of goods and services represented 26 percent of GDP (also up from 19 percent in 2020).
The report emphasizes that India’s services trade intensity surpasses that of China for both exports and imports. However, in terms of merchandise trade, India exhibits larger imports relative to its GDP, whereas China has larger exports.
RS Subramanian, Senior Vice President for South Asia at DHL Express, noted, “While India’s global connectedness ranking reflects its current economic standing, the report makes it clear: the world can expect to see India’s international engagement increase manifold in the years to come.”
Despite global shocks such as the Covid-19 pandemic, conflicts in Ukraine and Gaza, and the US-China trade conflict, the report highlights that globalisation reached a record high in 2022 and remained nearly as high in 2023. The report underscores that international trade is playing an increasingly significant role in India’s economy, with immense potential for deeper global integration and expansion of trade ties.
Subramanian added, “We foresee immense potential for deeper global integration for India, and in fact, our domestic economic boom is an opportunity for even greater international collaboration. India’s trade ties are poised for significant expansion.”
The report also anticipates a rebound in global trade growth in 2024 after a slowdown in 2023. It tracks the flows of trade, capital, information, and movement of people worldwide, providing insights into the globalisation trends of 181 countries and territories.
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