Mumbai: The country will clock the highest growth in trade and will sniff at USD 1 trillion by 2025, around three times its size on Monday, says a report by the British lender HSBC. (Agencies)
The report expects the trade, both merchandise exports and imports to grow by 156 percent during the period, while the global trade will be growing at 73 percent in the next 15 years with an annual growth of 2 percent until 2015, the bank said in its report titled HSBC Trade Connections.
"India's trade will grow 156 percent by 2025 with its trade volumes reaching USD 976.7 billion and will be amongst the top five international powerhouses that will drive world
trade growth until 2025," HSBC India head for trade and supply chain Bhriguraj Singh said releasing the report here on Monday.
In 2010, the country's merchandise trade stood at USD 339 billion and accounted for just 1.2 percent of world trade. However, despite this huge jump in trade, the report says, the
country's share in world trade will be just 2 percent by 2025.
"Trade with the UAE and China is expected to grow by 190 percent and 165 percent respectively, making the UAE, the country's largest trading partner by 2025," says the report.
The UAE is forecast to be the country's largest trading partner with trade values estimated at USD 103.6 billion, overtaking China which was the largest trade partner in 2010.
The report also points out that trade with the Middle East corridor, China, and a few Latin American countries is expected to be higher than the traditional large trading partners--the US and Europe, opening several new options and opportunities for exporters and importers.
The survey was conducted from July 22 to September 27 across 6300 companies spanning 36 countries. In India, the survey contacted 308 mid and small companies with a revenue of
under Rs 200 crore.
The report notes that the country does not have one dominant trading partner but its largest trading partners are the Middle Eastern countries with strong oil sectors.
The bank also released a Trade Confidence Index, which has found that the outlook of the country's traders remains firmly positive and 60 percent of the traders are confident
that the trade volume is going to increase over the next six months.
Traders, however, reported a fall of 11 index points to 129 index points, indicating that global economic headwinds may impact global trade over the next six months.
Mumbai: The country will clock the highest growth in trade and will sniff at USD 1 trillion by 2025, around three times its size on Monday, says a report by the British lender HSBC.