India offers exporters $38bn opportunity for bilateral trade

NEW DELHI: Global businesses can increase exports to India by more than $21 billion annually, according to the new Chartered Trade Opportunity Report.

The study, which included 10 of India’s key trading partners, also found that Indian exporters could boost exports to these markets by an estimated $17 billion, bringing the total bilateral trade opportunity to $38 billion.

As economies and businesses look to recover from the impact of COVID-19, the study highlights markets and sectors with new opportunities to grow trade.

Businesses in the United States, Malaysia, Indonesia, Singapore and the United Kingdom have the greatest opportunity to increase their exports to India.

The United States - India’s largest trading partner and market with the largest opportunity to boost trade - could increase exports by $5.7 billion annually with the financial services sector offering the most significant potential for growth.

The ASEAN region has a combined opportunity of $10.7 billion for exporters across Indonesia, Malaysia, Singapore, Thailand and Vietnam. The electrical machinery sector stands out with a combined annual opportunity to grow trade between India and the

ASEAN markets by $3.2 billion.

In South Korea, the spotlight is on $288 million opportunity to increase automotive exports. Meanwhile, the United Kingdom, France and Germany could increase exports to India by a combined $3.2 billion with a $413 million total export opportunity in organic chemicals sector across the three markets.

Gaurav Bhatnagar, Managing Director and Head of Trade for India and South Asia at Standard Chartered Bank, said businesses in India and across the world have faced unprecedented challenges over the last few months. “Looking ahead, they need to look for new growth avenues and build more resilience.”

The research contrasts actual export values with potential export values - calculated by an economic model - to uncover medium-term opportunities, looking to a post-COVID-19 world as economies begin to reopen.

A study, which included 10 of India’s key trading partners, also found that Indian exporters could boost exports to these markets by an estimated $17 billion