India has overtaken China on two-key parametres -- export to GDP ratio and services export-- with regard to integration into the global market, said a DHL Global Connectedness Report on Wednesday. India's exports-to-GDP ratio has exceeded China's since 2021 and also the country's services trade intensity far for both exports and imports, said the 'New DHL Global Connectedness Report 2024' by DHL and New York University's Stern School of Business, released here.
The report said that in 2021 and 2022, India's exports and imports as a share of GDP increased sharply.
India exported goods and services was 23 per cent of the GDP (up from 19 per cent in 2020) and imported goods and services 26 per cent of GDP (also up from 19 per cent in 2020).
India's services trade intensity far exceeds China's for both exports and imports, the report said.
However, as regards the merchandise trade, India has larger imports relative to its GDP while China has larger exports.
"While India's global connectedness ranking reflects its current economic standing, the report makes it clear: the world can expect to see India's international engagement increase manifold in the years to come," said RS Subramanian, Senior Vice President for South Asia at DHL Express.
The report further said that globalisation reached a record high in 2022 and stayed nearly as high in 2023 despite various global shocks such as the Covid-19 pandemic, wars in Ukraine and Gaza, and the US-China trade conflict.
Like all large economies, India conducts most of its business activity domestically. However, international trade comprises a growing share of India's economy, the report said.
"We foresee immense potential for deeper global integration for India, and in fact, our domestic economic boom is an opportunity for even greater international collaboration. India's trade ties are poised for significant expansion," Subramanian added.
After a slowdown in 2023, global trade growth is forecast to accelerate in 2024, the report said.
The report tracks flows of trade, capital, information, movement of people around the world and measures the globalisation of 181 countries and territories.
Source Name : Economic Times