The UK’s Department of International Trade report says that by the year 2050, India could become the world’s 3rd largest importer. India will become the 3rd largest importer with a 5.9 per cent share of global imports, following the United States and China.
Currently, India holds the eighth spot on the list of the largest importing countries. The country occupies a 2.8 per cent share. According to the Global Trade Outlook report, India will jump to the 4th position by 2030 with a 3.9 per cent share.
What Does The UK’s Department of International Trade report Says?
The UK’s Department of International Trade released a report which suggests that there will be a change in import trends in fur as the European and US Union’s import share is expected to decline, while Asia will see its share of global imports rise.
The UK Department of International Trade also suggests that the change is also marked in the travel, food, and digital services sectors. Along with an increase in wealthy populations in the Indo-Pacific region expected to consume more discretionary goods.
Also, it says that the world’s centre of economic gravity is shifting eastward for decades and causing trade patterns to shift gradually. Additionally, the report noted that “Between 2019 and 2050, 56 per cent of global growth is expected to come from the Indo-Pacific, compared with a quarter from the EU and North America combined. Growth within the Indo-Pacific is also expected to rebalance over time, with South Asia’s contribution (driven by India) rising.”
The key reason behind the economic gravity shifting eastward is China’s rapid progress. By the year 2030, China is expected to be the world’s largest economy in Purchasing Power Parity (PPP).
However, it is also expected that China will completely overtake the US in terms of the world’s largest economy in 2030. The report states, “The overtake is expected to happen around 2030. At that point, both countries will account for around 22% of global GDP.”