Structural Shifts in the World Order Are Strengthening India’s Global Demand Position

SYNOPSIS

Global trade now rewards reliability over low cost, and India is emerging as a preferred partner. Exports rose 15.52% (Nov 2024–Nov 2025) and the trade deficit narrowed sharply. China+1 shifts, FTAs, and stronger EU/Germany ties are making India’s demand story structural.

For decades, global trade rewarded one thing: “the cheapest supply chain.” But now the world rewards something else: “the safest supply chain.”

Geopolitical conflicts, sanctions and US-China tensions, following COVID disruptiveness, have not stopped globalisation, it has alter its rules. Countries and businesses have started demanding more sharper questions: Who is able to produce & supply without being interrupted? Who is reliable politically? Who can scale fast? The solution is becoming India.

This is not a short-term export agreement, It is an indicator of a change in the world order that is empowering the demand of India in the global market.

The total exports of India increased by 15.52 % as it increased between November 2024 and November 2025 by recording US$ 64.05 billion to US$ 73.99 billion. The imports were held at US$ 80.63 billion which assisted the trade deficit to reduce to a significant level of US 17in.06 billion to US 6.64 billion.

Momentum is changing. The merchandise export grew to US$ 38.13 billion as compared to US 31.94 billion (19.38 growth), whereas services export expanded to US 35.86 billion as compared to US 32.11 billion (11.67 growth). This balance is important as it is an indicator of resilience and non-reliance on exports.

The world tipping point: Why India is becoming a rising power?

Three changes in the world have led to India gaining superior positions in demand.

First, there is redesigning of supply chains. The world has realized that it is dangerous to rely too much on one geography. The term China+1 has become a trend. One of the few options which provides scale, labour base and increasing manufacturing capacity is India. Second, trade has been introduced into geopolitics. Trades are characterized by sanctions, export regulations, tariffs and industrial policies. Trade is no longer about efficiency only, but also about security and trust.

Third, the globalisation is becoming strategic globalisation. Nations are willing to have reliable partners and consistent trade routes. This suits India: large enough to matter, stable enough to trust, and flexible enough to work across blocs.

The competitive strength of India lies in four strengths:

• Export diversification

The export mix of India includes pharmaceuticals, engineering products, chemicals, electronics and refined petroleum products and so on. Diversification will help to minimize volatility and improve stability in the long run.

• Services dominance

Services exports continue to be the Indian structural advantage: IT, GCCs, R&D, design, digital operations and services of high-skill. International demand in this case is a secular one and the talent level of India is unparalleled.

• Manufacturing relevance

The global production networks are being drawn into India with the aid of electronics and high-growth supply chains. Policy support and global de-risking are putting India on the preferred base shortlist.

• FTAs as strategic tools

FTAs today do not simply constitute tariff deals. They serve as assurances, which enhance predictability, access to the market and investor assurance. Evidence by associations: FTAs + Germany/EU turning point. The FTA push (UAE, Australia, EFTA, UK, the new India Oman CEPA) can be seen as the move by India to become integrated into the global markets and promote the labour- intensive industries and MSMEs.

The larger signal is the one in Europe. The India- EU FTA has been long awaited and is becoming urgent due to the de-risking out of China by Europe and the search of enduring growth partners. India is becoming a market and a supply chain partner of Germany, which is the industrial anchor of Europe.

The cooperation in defence with Germany reinforces this story since defence alliances are founded on the long term strategic trust. Although Europe is on the same side as the US, the fact of the matter is that in the new world order, nations are not simply picking sides, they are picking up reliability.

Conclusion

The increase in global demand in India is long term and not short term. The world is changing its trade structure based on resilience and trusted partnerships and India is up to the need. The second one is implementation: logistics, compliance and highervalue exports. When the right step is taken, this decade can transform the economic face of India in the world.

AYUSHI VORA