India to outpace China in merchandise exports in 2025-50
India has the potential to outpace China in terms of merchandise exports in 2025-50, said a report by HSBC Financial Services. “We expect growth in merchandise exports from India to average 6% a year in 2025–50, compared with just under 5% a year for China,” said HSBC in its report. The report, titled ‘The Trade Winds: shaping the future of international business’ indicates that during 2025-50, India as well as China and other developing countries will seek to maintain their growth as they will move towards the production of higher-value products and away from an over-reliance on exports. The study, however, noted that to achieve this, countries will require significant investments, especially to get more people and businesses online. China would continue to extend its lead as the world’s leading exporter, primarily banking on its extended projects including the ‘One Belt, One Road’ initiative and the Asian Infrastructure Development Bank (AIIB), which aims to fund a range of infrastructure projects in the region to enhance trade. Referring to the projected trade growth between the economies of Asia, the study said the growth will be dynamic in the developing Asian economies, escalating from 17% of total global exports to 27% between 2015 and 2050. Asia Pacific’s share of global exports is also projected to increase from about a third in 2015 to 46% in 2050. "Western Europe’s share in the global trade is expected to drop from 34% to 22%, and North America’s to decline from 11% to 9%,” it said.
November 25, 2015 |5:20pm IST