Global exports will nearly double from $ 17.4 trillion to $ 29.7 trillion over the next decade, according to Standard Chartered and PwC Singapore’s Future of Trade 2030 report. India will be a key driver of global trade growth, with its exports expected to grow at an average annual rate of 7.6% to reach $ 564 billion by 2030.
The report found that 38% of global companies are currently manufacturing or planning to manufacture / source in India within the next five to ten years.
The report prepared jointly by Standard Chartered and PwC Singapore is based on analysis of historical business data and projections up to 2030. The report reveals 13 global markets that will drive this growth, identifies important corridors and trends shaping the future of world trade.
Singapore and Hong Kong are strategic corridors for India and are expected to grow an average of 8.4% and 6.6% per year through 2030, respectively. The United States will be the largest export corridor, accounting for 17% of total exports in 2030.
The report estimates that the metals and minerals sector will have the largest 35 percent share of world exports with a compound annual growth rate (CAGR) of 7.5 percent. Chemicals and pharmaceuticals will account for 13% of global exports, with a CAGR of 5.9%, while the machinery and power sector will be the third contributing 11% of exports, with a CAGR of 8.5 %.
“With India poised to spur global trade growth in the current decade, we have an obligation and responsibility to incorporate sustainable and inclusive practices to make trade fairer,” Gaurav said. Bhatnagar, Managing Director and Head of Commerce and Working Capital, India. & South Asia, Standard Chartered Bank.
According to the report, the main markets that will drive future growth in trade with exports in 2030 are Bangladesh ($ 51 billion), Hong Kong ($ 939 billion), India ($ 564 billion), Indonesia ($ 348 billion), Kenya ($ 10 billion), China ($ 5,023 billion), Malaysia ($ 499 billion), Nigeria ($ 112 billion), Saudi Arabia ($ 354 billion) , Singapore ($ 687 billion), South Korea ($ 972 billion), United Arab Emirates ($ 299 billion), Vietnam ($ 535 billion).
India remains a key trade corridor for Bangladesh, Indonesia, Malaysia, Nigeria, Saudi Arabia, South Korea, United Arab Emirates and Vietnam.
Research has revealed a significant trend in the adoption of sustainable business practices in response to climate concerns and a growing wave of conscious consumerism. While nearly 90% of business leaders recognized the need to implement these practices across their supply chains, only 34% ranked them among the top three execution priorities in the five to the next ten years.
The report indicates that Asia, Africa and the Middle East will see an acceleration in investment flows, with 82% of those polled saying they are considering new production sites in these regions in the next five to ten years.