India’s Role in Global Trade: A Rising Superpower in the Shadow
of China
India is steadily emerging as a key player in global trade and geopolitics,
increasingly positioning itself as a rising superpower, particularly in
contrast and comparison to China. With its large and youthful population,
fast-growing economy, expanding digital infrastructure, and strategic
geographic location, India is now being seen as both a counterbalance to
China and a promising global trade hub in its own right.
India’s Growing Economic and Trade Influence
India has become one of the fastest-growing major economies in the
world. Its GDP growth, driven by services, manufacturing, and exports, is
attracting global attention. India has rapidly expanded its trade
partnerships, signing new free trade agreements (FTAs) with countries
such as the UAE, Australia, and the UK (in progress), while also increasing
its share in global services exports—especially in IT, pharmaceuticals, and
fintech.
India is also becoming a crucial part of the global supply chain,
particularly as companies look to reduce dependence on China. Global
firms such as Apple, Samsung, and Foxconn are expanding manufacturing
operations in India under the government’s “Make in India” and
“Production Linked Incentive (PLI)” schemes. This shift is enhancing India’s
role as a manufacturing alternative and a reliable trading partner.
India vs. China: Competing Superpowers in Trade
While China remains the world’s largest exporter and the “factory of the
world,” India is making strategic gains in areas where China faces growing
scrutiny. Rising labor costs in China, increasing geopolitical tensions, and a
lack of transparency in business regulations are pushing global companies
to diversify their supply chains—a strategy often referred to as “China+1.”
India is a prime beneficiary of this realignment.
India also differs from China in its democratic political system and its close
ties with Western countries. As the U.S. and EU seek to reduce
dependence on China, they are strengthening economic and strategic
partnerships with India. India’s participation in key global groups—like the
Quad, G20, BRICS, and Indo-Pacific Economic Framework—further boosts
its international profile and trade influence.
Strategic Sectors: Technology, Defense, and Green Energy
India’s strength in technology and digital services gives it a unique edge
over China in certain sectors. While China excels in hardware and large-
scale manufacturing, India leads in software services, digital platforms,
and startups. India’s digital public infrastructure, such as the Unified
Payments Interface (UPI), has drawn global praise and is being exported to
other countries.
In defense, India is diversifying its imports, building indigenous
capabilities, and becoming a defense exporter, aiming to reduce reliance
on China-dominated markets. Similarly, India’s push toward renewable
energy and green technology is drawing foreign investment and placing it
at the center of global energy transition discussions.
Challenges to Overcome
Despite its progress, India faces several challenges in fully assuming the
role of a global superpower. Infrastructure bottlenecks, complex
regulations, bureaucratic red tape, and socio-economic inequalities
continue to hinder growth. Compared to China’s well-developed logistics
and industrial ecosystem, India still has ground to cover in manufacturing
efficiency and export volume.
Additionally, India’s cautious approach to trade liberalization—such as
withdrawing from the Regional Comprehensive Economic Partnership
(RCEP)—shows that it is still balancing protection of domestic industries
with ambitions for global leadership.
Conclusion
India is undeniably on a path toward becoming a global trade superpower,
rising in parallel to—and in some ways, in competition with—China. While
it may not yet match China’s scale in exports and manufacturing, India’s
democratic governance, youthful workforce, innovation-driven economy,
and strategic global alliances are positioning it as a formidable player on
the world stage. In the coming decades, the economic and trade rivalry
between India and China will play a major role in shaping global supply
chains, geopolitics, and economic order.
