India Trade Finance Market Size (2024 - 2029)

The India Trade Finance Market is projected to experience significant growth over the forecast period, driven by the increasing adoption of advanced technologies such as blockchain, artificial intelligence, machine learning, and the Internet of Things. This market, which encompasses various financial products facilitating global trade and commerce, is becoming crucial for Indian businesses as a reliable funding source. The low default rate associated with trade finance, compared to traditional loan facilities, underscores its importance, with a need for equitable conditions for both domestic and international financiers. The shift towards remote management of trade operations, accelerated by the COVID-19 pandemic, has further emphasized the relevance of trade finance in supporting the expansion of global trade activities.

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Market Size of India Trade Finance Industry

India Trade Finance Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 2 Billion
Market Size (2029) USD 2.95 Billion
CAGR (2024 - 2029) 8.15 %
Market Concentration Medium

Major Players

India Trade Finance Market Major Players

*Disclaimer: Major Players sorted in no particular order

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India Trade Finance Market Analysis

The India Trade Finance Market size is estimated at USD 2 billion in 2024, and is expected to reach USD 2.95 billion by 2029, growing at a CAGR of 8.15% during the forecast period (2024-2029).

Various financial products used by organizations to handle global trade and commerce are referred to as "trade finance," sometimes known as "export finance." Banks, trade finance firms, export credit organizations, importers, and exporters frequently use it. Trade finance in various forms may prove to be one of the most important modes of sufficient funding for Indian business houses. Unlike loan facilities, the rate of default in trade finance is very low as it is purely dependent on the business strength and past record of the debtor, and the need of the hour is to have a level playing field for all the onshore and global financiers.

With the impact of the COVID-19 pandemic breakout, more and more trade and commerce operations were managed remotely using a variety of electronic devices, including optical character recognition (OCR), QR codes, and RFID readers. Over the past century, trade finance has played a significant role in the growth of global trade, and now, bank-mediated transactions account for more than a third of global trade, or trillions of dollars annually. The Indian trade finance market is increasingly applying technologies such as blockchain, artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT) that will boost the trade finance market in the country.

India Trade Finance Industry Segmentation

The research offers a thorough overview of the market's rivals. It also offers a financial performance analysis of the market's listed companies. The report offers comprehensive information on the companies' most recent developments and the competitive landscape. The Indian trade finance market is segmented by service providers and by application. By service providers, the market is segmented into banks, trade finance companies, insurance companies, and others, and by application, the market is segmented into domestic and international. The report offers market size and forecasts for the India trade finance market in value (USD) for all the above segments.

Service Provider
Banks
Trade Finance Companies
Insurance Companies
Others
Application
Domestic
International
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India Trade Finance Market Size Summary

The India trade finance market is poised for significant growth, driven by the increasing adoption of advanced technologies and the government's push towards digitalization. Trade finance, essential for facilitating global trade, is gaining traction as a vital funding source for Indian businesses, offering lower default risks compared to traditional loans. The market is witnessing a surge in the use of technologies such as blockchain, AI, ML, and IoT, which are enhancing the efficiency and security of trade transactions. The government's initiatives to create digital public infrastructures, coupled with high mobile and smartphone penetration, are transforming payment systems and fostering the development of contextual banking. This digital transformation is enabling businesses to engage more effectively with consumers and streamline their operations, particularly in cash forecasting, liquidity management, and risk exposure.

Despite the promising growth, challenges remain, especially for small and medium enterprises (SMEs) that struggle with access to finance and complex trade financing transactions. The market is addressing these issues by promoting interoperability across networks and platforms, which could simplify workflows and reduce operational costs. The competitive landscape includes major players like SBM Bank, HDFC Bank, Yes Bank, Terker Capital, and Standard Chartered, who are actively involved in mergers and acquisitions to strengthen their market position. Recent initiatives, such as the Reserve Bank of India's new foreign exchange mechanism and MUFG Bank's sustainable trade finance facility for Tata Power, highlight the ongoing efforts to stabilize the economy and promote international trade in Indian rupees. These developments underscore the dynamic nature of the trade finance market in India, with a focus on enhancing accessibility and efficiency for all stakeholders.

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India Trade Finance Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Industry Attractiveness - Porters' Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitutes

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Insights on Various Regulatory Trends Shaping Trade Finance Market

    6. 1.6 Insights on Impact of Technology and Innovation in Trade Finance Market

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 Service Provider

      1. 2.1.1 Banks

      2. 2.1.2 Trade Finance Companies

      3. 2.1.3 Insurance Companies

      4. 2.1.4 Others

    2. 2.2 Application

      1. 2.2.1 Domestic

      2. 2.2.2 International

India Trade Finance Market Size FAQs

The India Trade Finance Market size is expected to reach USD 2 billion in 2024 and grow at a CAGR of 8.15% to reach USD 2.95 billion by 2029.

In 2024, the India Trade Finance Market size is expected to reach USD 2 billion.

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