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India’s trade to grow at CAGR of 6.4 percent in next decade: Report

by Aaryan Srivastav
January 13, 2025
भारत का व्यापार अगले दशक में 6.4 प्रतिशत की सीएजीआर से बढ़ेगा: रिपोर्ट

New Delhi, January 13 (IANS). India’s role in global trade is set to increase, as the country’s trade will grow at a compound annual growth rate (CAGR) of 6.4 percent over the next decade. This information was given in a report released on Monday.

The Boston Consulting Group (BCG) report said that the ASEAN region, especially India, will benefit from the production shift due to increasing tensions between the US and China.

The report further said that we estimate India’s total trade to grow at a CAGR of 6.4 per cent to $1.8 trillion annually by 2033, which is broadly in line with its high GDP growth.

The report noted that as the world moves towards increasingly flexible and diverse supply chains, India’s ‘China+1’ strategy, supported by its large domestic market, skilled workforce and forward-looking policies, is crucial. Establishes it as a preferred global manufacturing hub.

Nishant Gupta, Managing Director Partner, BCG India, said, “Strengthening partnerships with the US, EU and emerging regions such as Africa and ASEAN is key for India to capitalize on this momentum and promote inclusive, sustainable growth in global trade. Will be important.”

Analysis from BCG’s Center for Geopolitics estimates that global trade will top $29 trillion by 2033, but the routes of movement of goods are changing at a rapid pace. The Global South, which has a share of about 30 percent in global trade, may see many major changes in the coming decade.

“Trade routes were already diverging from historical patterns and the upcoming US tariffs will only accelerate this. Understanding these new dynamics will be critical for any global business,” said Aparna Bhardwaj, managing director and partner, BCG.

–IANS

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