India’s Strategic Partnership with G7 to Boost World Trade: Study
India’s deepening strategic partnership with the G7 countries is set to significantly enhance global trade and economic growth, according to a study released by the PHD Chamber of Commerce and Industry. The collaboration spans clean and renewable energy, climate finance, Digital Public Infrastructure (DPI), supply chain resilience, and the healthcare and pharmaceutical sectors.
The study emphasizes the strategic importance of maritime and Indo-Pacific security in strengthening India’s relationship with G7 economies.
India’s merchandise trade with G7 nations grew by 61%, rising from $154 billion in FY 2020–21 to $248 billion in FY 2024–25. India has consistently maintained a trade surplus, supported by stronger export competitiveness and a resilient external sector.
Highlighting India’s macroeconomic stability, the report cites transformative reforms like the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code, the Production Linked Incentive (PLI) scheme, and digital frameworks such as Aadhaar and UPI. These initiatives, alongside the Make in India program, have elevated India’s position on the global economic stage.
From 2021 to 2024, India’s real GDP grew at an average of over 8%, outperforming all G7 economies. Projections by the International Monetary Fund (IMF) suggest India will sustain an average growth rate above 6% through 2029, driven by strong domestic demand, sound fiscal management, and a youthful workforce.
In purchasing-power-parity (PPP) terms, India’s share in global GDP rose from 7% in 2020 to 8.3% in 2024 and is expected to exceed 9% by 2029.
A key factor behind this momentum is India’s favorable demographic profile. Over 68% of the population is within the working-age group (15–64 years), bolstering labor supply, domestic consumption, and innovation, especially in the startup ecosystem and higher education.
In contrast, G7 countries are facing demographic headwinds, with over 10% of their populations aged 65 and above—expected to double by 2030. This trend may slow their economic output, strain public resources, and shrink consumer markets.
Prime Minister Narendra Modi, in his recent G7 address, reaffirmed India’s commitment to climate leadership and digital innovation. He spotlighted India-led global initiatives such as the International Solar Alliance, Mission LiFE, and the Global Biofuels Alliance as tools for a sustainable future.
India also presented its human-centric approach to AI and digital governance, featuring platforms like BHASHINI and DPI as scalable, ethical solutions. The Prime Minister advocated for global cooperation on AI regulation, resilient tech supply chains, and responsible innovation.
With a robust partnership, India and the G7 are poised to drive inclusive global development and trade in the coming decade.
