India's Trade-To-GDP Ratio

The graph shows the trade-to-GDP ratio* versus the logarithm of GDP for 184 countries**. It shows a slight decreasing relationship between the two - as GDP increases, the trade-to-GDP ratio decreases slightly. India is shown by the red dot - and it is below the trendline. That is - its trade-to-GDP ratio (at 45%) is below what it should be as per this relationship (which is 70%). So there is a lot of scope (25% points) for increasing India's trade (both exports and imports) to make it on par with the world's trend relationship . . .

*[Trade = exports + imports]

**[I have left out 9 outliers whose trade-to-GDP ratio is more than 200% - these are small high-trading countries]

Data-source: World Bank