India Stepping Up to the Plate in Global Exports – ANZ
(8 June 2023 – India) India is rising in the ranks of global trade ANZ Research reports.
Between 2010 and 2020, India’s global export share stagnated below 1.8 percent. But since 2021, its goods exports have held up much better than other economies in Asia. Its global export share has reached 2.6 percent, much higher than Vietnam's 1.5 percent, and only slightly below South Korea's 2.7 percent. Although it is still trailing far behind China, India is beginning to punch its weight in global exports.
Reporting in The Economic Times, ANZ Research highlights five structural shifts including geopolitics, offshoring of services, “made in India”, trade deals and exchange rate management. Quantifying the supply chain diversification out of China, for every one percent gain in US import share, India can add an estimated US$30 to 40 billion to its annual exports.
“For India to emerge as the new export powerhouse, it needs to enhance the whole foreign trade ecosystem. Isolated boosts won't cut it. It needs increased preferential access via free trade deals with more countries, stable and competitive exchange rates, improving infrastructure and policy support for manufacturing, and continued supply of inputs like labour with required skills will all be indispensable. From here on, much depends on whether policymakers can maintain the momentum” commented ANZ Economist Dhiraj Nim and ANZ Banking Group Head of Asia Research, Khoon Goh.