Historically, India has been viewed as being far less vulnerable to global financial crises than other large economies because it was much less integrated with the global economy than countries like, say, the US or China. Today, however, at least as far as trade goes, the opposite is true. World Bank data shows that in 2014 India’s total trade (exports plus imports) was equivalent to about 50% of its GDP. This was higher than the trade to GDP ratio of the US, Japan or China. During the 1997 Asian financial crisis, which India escaped relatively unscathed, total foreign trade was equivalent to only 22.2% of the country’s GDP.
One way to measure the extent to which an economy is globally linked is by comparing its international trade with its GDP. By this yardstick, India’s aggregate exports and imports of goods and services was 49.6% of the country’s GDP in 2014, compared to China’s trade to GDP ratio of 41.5% for the same year.