India will be Asia's fastest growing exporter and importer in five years: HSBC report

MUMBAI: Over the next five years, India will serve as Asia's fastest growing exporter and importer with annualised growth averaging 5% and 7% respectively, said HSBC Global Connections report. The trade relationship between China and India will strengthen over the same time period, with HSBC forecasting Chinese imports into India to grow at 11% annually, while exports to China from India are forecast to expand at 8% annually to 2016,'' said.

The forecast is consistent with a developing global shift where traditionally export-driven emerging markets will become global trade hubs and important facilitators of international economic growth. Trade in Asia is expected to grow 5.4% annually to 2016, substantially higher than the global forecast of 4.7%,'' said the report.

India's trade corridors within Asia continue to strengthen with exports to Malaysia, Vietnam and Indonesia all expected to grow at around 11% over the next five years. The fastest growth markets in terms of imports include Oman at a forecast rate of 15.7% and Brazil at 14%, said HSBC.

The reports states that there is a blend of traditional trade route and emerging corridors

India has a number of well established trading partnerships across the developed world, with the US and UK. However, its most significant partnership is with the UAE, and trade with Saudi Arabia is also building in volume and importance. Routes into Asia-Pacific continue to develop, with China appearing as India's largest source of imports, and third largest export market.