September 20, 2021 12:41 PM
India will be 3rd largest importer by 2050 with a 5.9% share of global imports, following China and the United States (US), according to a new report by the UK’S Department of International Trade.
Currently, India is on the eighth spot on the list of largest importing countries with a 2.8% share. The country will jump to the fourth position by 2030 with a 3.9% share, according to the report titled ‘Global Trade Outlook’.
The US’s and the EU’s share of most import sectors is expected to decline out to 2030 as the growing purchasing power of Asia’s middle-class accounts for a rising share of global import demand.
“This change is particularly marked in the food, travel and digital services sectors where larger and increasingly wealthy populations in the Indo Pacific are expected to consume more discretionary goods and services,” it noted.
The report further revealed that the world’s centre of economic gravity has been shifting eastward for decades – causing trade patterns to shift as it moves.
“Between 2019 and 2050, 56% of global growth is expected to come from the Indo Pacific, compared with a quarter from the EU and North America combined.
India will be 3rd largest importer by 2050, Growth within the Indo Pacific is also expected to rebalance over time, with South Asia’s contribution (driven by India) rising,” it added.
China is a major driver of this economic shift as it is expected to become the world’s largest economy by 2030 and has already displaced the US in Purchasing Power Parity (PPP) terms (which account for differences in local prices) in the mid-2010s.