Standard Chartered reveals USD38bn opportunity for trade growth between India and key trading partners

New report highlights opportunities between India and 10 markets as possible routes to post COVID-19 growth

Singapore – Businesses could increase exports to India by more than USD21 billion annually, the Standard Chartered Trade Opportunity Report has revealed. The study, which included 10 of India’s key trading partners, also found that Indian exporters could boost exports to these 10 markets by an estimated USD17 billion, bringing the total bilateral trade opportunity to USD38 billion.

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 USD5.7 billion annually, with the financial services sector offering the most significant potential for growth.

The ASEAN region has a combined opportunity of USD10.7 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 USD3.2bn.

In South Korea, the spotlight is on the USD288 million opportunity to increase automotive exports. Meanwhile, the UK, France and Germany could increase exports to India by a combined USD3.2 billion, with a USD413 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 USD21 billion annually. Equally, exporters in India will find opportunities to increase trade by around USD17 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.”

Export opportunity into India for 10 key trading partners

Market Total goods and services export opportunity to India (USD million) Percentage of actual total exports to India
US 5,703 13%
Malaysia 3,492 51%
Indonesia 3,220 46%
Singapore 2,164 11%
UK 1,735 12%
South Korea 1,489 8%
Thailand 1,224 14%
Germany 759 4%
France 721 7%
Vietnam 633 10%

Export opportunity from India into 10 key trading partners

Market Total goods and services export opportunity from India (USD million) Percentage of actual total exports from India
Thailand 2,598 48%
Germany 2,561 16%
Korea 1,980 22%
Indonesia 1,827 26%
The UK 1,772 10%
France 1,703 17%
Malaysia 1,701 25%
Singapore 1,397 9%
US 818 1%
Vietnam 475 11%

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. The scope covers high-potential exports, defined as goods or services where businesses have added value within the borders of their home market.

To download the Standard Chartered Trade Opportunity Report and find out more about the potential export opportunities between India and 10 key trading partners, visit: www.sc.com/tradeopportunityreport.

For further information please contact:

Josephine Wong
Group Media Relations
+65 6596 4690

Note to Editors

About the study

The Standard Chartered Trade Opportunity Report reveals the size of the export opportunities between India and 10 of its most economically diverse trading partners: Indonesia, Malaysia, Singapore, South Korea, Thailand, Vietnam, France, Germany, the UK and the US. Export opportunities are calculated by subtracting potential exports from actual exports. Potential exports are calculated using a gravity trade model, which takes into account GDP, geographic distance and other relevant variables. Actual export figures are drawn from the IMF’s Direction of Trade Statistics (for goods) and the OECD’s Trade in Value Added database (for services). Both are time-averaged for 2016-2018. The study excludes commodity or commodity-like sectors, focusing on ‘high potential’ exports only (i.e. sectors where there is a meaningful opportunity to add value). These high-potential sectors play a critical role in export performance, collectively representing 82 per cent of total trade on these routes.

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