India May Be Among Top Exporters by 2030: HSBC

NEW DELHI: India has the potential to become the world's fifth largest exporter of goods by 2030 in value terms, according to HSBC Trade Forecast.

The country has the potential to become an export hub for autos and it is well placed to further develop its textile industry, global financial services major HSBC said in a report.

This is despite the fact that India's near-term growth prospects remain lackluster, with the economy likely to expand by 5.3 percent in 2014 and 6.3 percent in 2015 - well below the rapid growth rate of around 8 per cent a year in 2001-11.

"Despite struggling with a number of structural impediments to growth, prospects for medium-term growth in trade remain strong," the HSBC report said.

India's Trade Confidence Index increased from 126 in the second half of 2013 to 137 in the first half of 2014. In the near term, respondents see Europe as the most promising trading destination, pushing Asia into second position.

"The economic potential for India remains strong, with the growing population and rapidly expanding middle class - it presents opportunities for business. India is forecast to emerge as the world's largest middle class market, surpassing both China and U.S.," HSBC India managing director and head-commercial banking Sandeep Uppal said.

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