India, the world’s largest economy with the quickest growth, is experiencing an increase in the arrival of box ships at its ports, requiring the construction of larger ports.
The International Monetary Fund (IMF) expects India’s GDP to increase by 6.8% this year, while the country’s exports are growing quickly. India exceeded the predicted objective set by the government and exported $422 billion worth of goods last year.
“As the global supply chain struggles to place all its bets on China, there is rising confidence that India could become one of the more resilient alternatives to China in the global supply chain,” a new report says.
Besides that, according to data from the International Trade Administration, trade between India and the US reached a record high of US $ 119.42 billion in the 2012-22 fiscal year, increase from US $ 80.51 billion in the previous year.
Making up 11.5 percent of India’s total global trade, this increase has resulted in the US surpassing China and becoming India’s primary trading partner.
According to analysis from S&P Global Market Intelligence, India’s economy would enter a period of strong expansion in 2023. Surplus trade activity will support this expansion as India diversifies its manufacturing base.
“The active use of trade policy measures under the ‘Make in India’ programme is complemented by in-market, for-market manufacturing strategies and the benefit of reshoring away from China,” S&P Global Market Intelligence noted.
Recently, the growing interest in Indian traffic was reflected by sister companies COSCO and OOCL launching a Southeast Asia – India – US east coast service in December after closing a China – Vietnam – US east coast loop.
“India is uniquely placed naturally to develop into a transhipment hub. With the right investments and focus, the country can be fully equipped to position itself as an important cog in the wheel of the global supply chain,” said Christian Roeloffs, CEO of Container xChange.
Global shipping companies like Germany’s Hapag-Lloyd are shifting more workers and resources to India.
One of India’s top private terminal and inland transport service providers, JM Baxi Ports & Logistics, now holds an ownership part in the German company.
