India, key trading partners offer $38-bn opportunity for trade growth, says Standard Chartered study

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

The bilateral trade between Indian and its ten key trading partners including the US, Malaysia, Indonesia, Singapore and the UK offer a trade opportunity to the tune of $38 billion in the wake of recovery signs in economies and businesses, said a report.

Businesses could increase exports to India by more than $21 billion annually with its ten key trading partners and in turn, Indian exporters could also boost exports to these 10 markets by an estimated $17 billion, bringing the total bilateral trade opportunity to $38 billion, said Standard Chartered Trade Opportunity Report on Tuesday.

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

“Businesses in the US, Malaysia, Indonesia, Singapore and the UK have the greatest opportunity to increase their exports to India. The US – India’s largest trading partner and the 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,” said the study, which included 10 of India’s key trading partners.

The ASEAN region has a combined opportunity of $10.7 billion for exporters across Indonesia, Malaysia, Singapore, Thailand and Vietnam, the report said. The electrical machinery sector stands out, with a combined annual opportunity to grow trade between India and the ASEAN markets by $3.2bn.

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

Simon Cooper, CEO, Corporate, Commercial and Institutional Banking, Standard Chartered, said, “Following a period of unprecedented challenges, global trade will be crucial to the recovery of businesses and economies. The Standard Chartered Trade Opportunity Report provides exporters in 10 markets with information on sector opportunities to boost their business ties with India by a significant $21 billion annually. Equally, exporters in India will find opportunities to increase trade by around $17 billion across a spectrum of sectors. By highlighting these untapped opportunities for growth, we hope to facilitate the global economic recovery and help our clients build more resilient businesses.”

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