India-G7 partnership to boost global trade

New Delhi

India’s growing ties with the G7 nations are expected to greatly boost world trade and cooperation, according to a study by the PHD Chamber of Commerce and Industry. The report highlights key areas like clean energy, digital technology, healthcare, trade, and supply chains as the focus of this expanding partnership.

India’s trade with G7 countries rose by 61 per cent, from $154 billion in 2020–21 to $248 billion in 2024–25, while keeping a trade surplus. This growth shows India’s rising strength in exports and its ability to stay stable in a changing world economy.

The report credits this success to reforms such as GST, the Insolvency and Bankruptcy Code, and the Production Linked Incentive Scheme, along with strong digital tools like Aadhaar and UPI. With an average GDP growth of over 8 per cent between 2021 and 2024, India outpaced all G7 nations. The IMF predicts that India will keep growing above 6 per cent until 2029.

India’s economic rise is also helped by its young population—over 68 per cent are aged between 15 and 64. In contrast, G7 countries face problems like ageing populations and shrinking workforces. This gives India an edge in future labour supply, innovation, and consumption.

India’s global leadership in clean energy, AI, and digital governance was also praised. Prime Minister Modi emphasized India’s role in projects like the International Solar Alliance and Mission LiFE during the recent G7 summit.

The study concludes that India’s strategic links with the G7 will not only fuel its own progress but also support more balanced, inclusive growth across the globe.