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by IANS |
New Delhi, March 15 (IANS) India's trade saw strong growth in the last quarter of 2024, according to a new report by the United Nations Conference on Trade and Development (UNCTAD).
The report highlights that while global trade expanded significantly in 2024, many developed nations faced trade contractions.
However, India performed better than average, with both imports and exports increasing.
The report states that global trade grew by nearly $1.2 trillion in 2024, reaching $33 trillion. This was driven by a 9 per cent rise in services trade and a 2 per cent increase in goods trade.
India's trade momentum remained strong in the fourth quarter of 2024, with merchandise and services trade showing positive growth.
The country recorded an 8 per cent quarterly growth in imports of goods in the last quarter of 2024 compared to the previous quarter.
On an annual basis, goods imports rose by 6 per cent. The country's exports of goods also grew by 7 per cent quarterly, while annual exports increased by 2 per cent.
Services trade remained a key area of growth for India. In the fourth quarter of 2024, the country saw a 7 per cent quarterly growth in services imports and a 10 per cent rise annually.
Services exports also increased by 3 per cent quarterly and 10 per cent on an annual basis. This growth reflects India's strong performance in sectors like IT and business services.
However, the report warns that the global economy may slow down in the coming months. In early 2025, there has been a decline in demand for container shipping, indicating weaker global trade.
The Shanghai Containerized Freight Index, which tracks shipping costs, has fallen, suggesting reduced demand for goods worldwide.
Additionally, the Baltic Dry Index, which measures the shipping rates for raw materials like coal and iron ore, remains lower than 2024 levels.
The report also highlights growing trade imbalances. The United States trade deficit has widened, while some countries have seen a rise in trade surpluses.
Concerns over geopolitical tensions and changing trade policies may create further disruptions in 2025. Protectionist policies, including new tariffs on certain products, could affect international trade patterns.
Despite these challenges, there are some positive factors. The expected easing of global inflation and India's steady economic performance may support trade growth.
The report suggests that balanced policy decisions and international cooperation will be crucial to maintaining trade stability.
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