DHL Global Trade Barometer says the country has the potential to catch up with the big contributors to global trade. India’s growth trajectory will remain robust, with its trade index bettering that of the US and the UK, a study by a global logistics major has found. DHL Global Trade Barometer, an early indicator of global trade developments, suggests India’s economy has brighter prospects than any of the world’s seven largest contributors to global trade: China, South Korea, Germany, India, Japan, the UK and the US.
“More than any of the world’s largest economies, India’s major industries have displayed levels of resilience and growth that will buoy business confidence in the short- to medium-turn,” said George Lawson, Managing Director, DHL Global Forwarding India. The DHL Global Trade Barometer, developed jointly by DHL and Accenture, is based on import and export data for a number of intermediate and early-cycle commodities that serve as inputs for industrial production. Using Artificial Intelligence, Big Data and predictive analytics, the index analyses air and containerised ocean freight data in seven countries, which account for more than 75 per cent of world trade.
Air, ocean freight
The study said both air and ocean freight remain strong in India, with high demand for commodities and equipment driving growth. It notes that India’s increased import of industrial raw materials point to an extended period of trade development for the nation, even as trade in machinery and hi-tech goods would continue to underpin its growth. According to the report, businesses in India can expect ocean trade to improve further, thanks to the demand for commodities and industrial materials from overseas. Demand forair freightis projected to remain stable at current highs, sustained by growth in machinery and technology imports. India’s air and ocean freight forecasts proved stronger than those of any other country in the Global Trade Barometer largely due to every major sector making a positive contribution to the country’s trade.
“We are expecting strong performance in not just one or two sectors, but across the entire Indian economy,” said Lawson, adding: “It implies two things – Indian enterprises of all stripes are not only growing fast, but are also becoming more and more globally connected in how they do business.”