India emerges as a global trade powerhouse, ranking third in terms of absolute trade expansion, according to a report of DHL Trade Atlas 2025. The country is set to become a major driver of global trade growth over the next five years.
The country is expected to account for 6% of the additional global trade during this period, trailing only China (12%) and the United States (10%). The report further stated that India’s growing role in international trade, alongside other emerging economies such as Vietnam, Indonesia, and the Philippines.
These countries are forecast to be among the top 30 nations in terms of both trade speed and scale. It said, “During the next five years, India, Vietnam, Indonesia, and the Philippines are forecast to rank among the top 30 for both speed and scale of trade growth. India also stands out as the country with the third-largest absolute amount of forecast trade growth.”
India Emerges As A Global Trade Powerhouse: What Else?
India’s trade performance has been remarkable in recent years. In 2024, it was the 13th largest trading nation globally, yet it recorded a compound annual trade growth rate of 5.2% from 2019 to 2024. This growth far outpaced the global trade expansion rate of just 2% during the same period.
The report attributed India’s rapid trade rise to its strong macroeconomic performance and deeper engagement in global trade networks. Another key trend observed in the report is the increasing share of global trade involving countries that are not closely aligned with either the United States or China. This share rose from 42% in 2016 to 47% in 2024.
The report stated that, nations like the United Arab Emirates, India, Vietnam, Brazil, and Mexico have significantly increased their participation in world trade, reinforcing their position as key players in the evolving global economic landscape.
Furthermore, trade involving countries that are considered neutral–neither leaning towards the U.S. nor China–has also risen, growing from 15.4% in 2016 to 17.5% in 2024. This trend highlights a shift towards a more diversified and multipolar trade environment.
With its strong economic fundamentals and increasing trade participation, India is well-positioned to continue its upward trajectory in global commerce. The coming years are expected to see India solidifying its role as one of the fastest-growing trading nations in the world.
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