“The centre of global trade is gradually shifting from the Atlantic region to the Indo-Pacific region.” Examine this statement. (UPSC 2026)

The balance of global trade is moving eastward. The Indo-Pacific now combines scale, manufacturing strength, shipping dominance and market demand, making it the most dynamic trade space; however, the Atlantic still retains major financial and institutional power, so the shift is gradual, not complete.

Drivers of Indo-Pacific rise

• The region accounts for about 60% of global GDP and over half the world’s population, creating the largest base for production and consumption.
• Asia-Pacific contributes nearly 50% of global growth; India alone is expected to add around 17% of global GDP growth.
• East Asia remains the main engine of trade expansion, led by China, South Korea and other manufacturing economies.

Trade and maritime advantages

• RCEP links 15 economies and covers about 30% of global GDP and population, deepening regional value chains.
• CPTPP and IPEF reflect a shift towards modern rules on supply chains, services and digital trade.
• Over 60% of global maritime trade passes through the Indo-Pacific, and chokepoints like the Strait of Malacca make it central to energy and goods flows.

Why the Atlantic still matters

• The US dollar remains the key reserve and settlement currency.
• Wall Street, SWIFT and Bretton Woods institutions continue to shape global finance.
• Atlantic powers still influence standards, technology and security.

Thus, global trade is being rebalanced towards the Indo-Pacific on the strength of growth, supply chains and connectivity, while the Atlantic retains financial primacy in key areas.