India’s trade-GDP ratio higher than US, China’s
Historically, India has been viewed as being far less vulnerable to global financial crises than other large economies because it was much less integrated with the global economy than countries like, say, the US or China. Today, however, at least as far as trade goes, the opposite is true. World Bank data shows that in 2014 India’s total trade (exports plus imports) was equivalent to about 50% of its GDP. This was higher than the trade to GDP ratio of the US, Japan or China. During the 1997 Asian financial crisis, which India escaped relatively unscathed, total foreign trade was equivalent to only 22.2% of the country’s GDP.
One way to measure the extent to which an economy is globally linked is by comparing its international trade with its GDP. By this yardstick, India’s aggregate exports and imports of goods and services was 49.6% of the country’s GDP in 2014, compared to China’s trade to GDP ratio of 41.5% for the same year.
In 2013, the year till when bank data is available for the US and Japan, international trade was about 30% of GDP for US and 35.5% for the Japanese economy. Of course, the US, China and Japan are far larger economies than India at the nominal exchange rate and hence a lower trade ratio doesn’t mean their trade volumes are lower than India.
D P Parashar
Most of the time these figures are generated to affect your thinking. Normally people find some points to praise neighbour’s children so that their competition spirit remains at low level
I really don’t know where you get these figures from,we are no way near competing with the likes of the west or China,Japan.i wish the headlines were true,maybe one day.
Fake news… Journalism in India has stooped to a new low
What about GDP per capita? Its so low in India…..
KRISHNA nand tewari
Getting integrated with global economy is desirable and should be encouraged