India’s trade momentum remains strong despite global challenges: Unctad

New Delhi: India’s trade performance remained strong in 2024, defying global economic uncertainties, with exports growing 6.3% for the calendar year, significantly outpacing global trade growth of 3.7%, according to the latest report by the United Nations Conference on Trade and Development (Unctad).

India, alongside the US and China, played a key role in driving global trade, which saw an overall increase of nearly $1.2 trillion, as per the report. While trade in goods recorded a modest growth, services led the surge, contributing $700 billion to the global trade expansion, compared to $500 billion from goods.

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India’s total exports of goods and services reached a record $817.4 billion in calendar year 2024 (CY24), up from $769 billion in CY23, marking a significant leap in the country’s external trade performance. The first three quarters of the 2024-25 financial year witnessed record-breaking exports, with the third quarter achieving the highest-ever export levels.

Despite persistent global challenges such as supply chain disruptions and economic slowdowns in key markets, India’s trade resilience remains evident. The steady growth in both goods and services exports highlights the country's strengthening position in global trade and its adaptability to evolving economic conditions.

As per the Unctad report, trade remains stable in early 2025, yet mounting geoeconomic tensions, protectionist policies and trade disputes signal likely disruptions ahead.

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Global trade imbalances widened in 2024, nearing levels last seen in 2022, according to trade data trends. The US continued to register the largest trade deficit, while China maintained the highest trade surplus, with both trends intensifying throughout the year.

Among other major economies, the European Union recorded a notable trade surplus in 2024, reversing its earlier deficits, largely driven by high energy prices. Meanwhile, India, Japan and the UK remained among the economies with significant trade deficits. The shifting trade patterns reflect evolving global economic conditions, including supply chain adjustments, fluctuating commodity prices and policy shifts in key markets.

In October 2024, the World Trade Organization (WTO) adjusted its projection for global merchandise trade volume growth in 2024 to 2.7%, a slight increase from the previous estimate of 2.6%. However, the forecast for 2025 was revised downward from 3.3% to 3.0%, indicating tempered expectations for trade expansion in the coming year. The WTO’s trade projection report for 2025 is slated to be released in mid-April.

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