“For the world as a whole, the share of trade as a percentage of world GDP has been in the range of 50-60% since 2003 and stood at 52% in 2020, according to the World Bank database. For India as well, it has been above 40% since 2005 (except 2020 being the pandemic year). The ratio stands at 46% in 2021 and 50% for H1 of 2022,” the Survey, tabled by Finance Minister Nirmala Sitharaman on Tuesday, stated.
Observing that in the present globalised and integrated world trade was essential for developing countries, the Survey said this can help them reap the benefit of increased globalisation of products and financial markets. “It is well recognised that trade is not an end in itself but a means to balanced, equitable, and sustainable development. Conventional economic theories point towards potential gains that could emerge from openness to international trade and investment,” it said.
International trade, the Survey added, has been an important pillar of the resilience of India’s external sector. “Trade as a percentage of GDP for India was in the range of 12-15% in the 1980s; 16-25% in the 1990s and 25-50% in the 2000s.”
