The International Institute for Management Development (IMD) and the Hinrich Foundation  present the 2023 edition of the Hinrich-IMD Sustainable Trade Index (STI). This year’s release casts a spotlight on a global shift towards “slowbalisation” in the post-pandemic world marked by geopolitical uncertainties

The STI data shows a concerning deterioration in non-tariff barriers and trade costs across major economies in 2023 compared to the previous year, which is in reaction to the changing global scenario. It is noteworthy that several of the biggest economies in the world, which were supposed to lead the fight against “slowbalisation,” have instead raised tariffs, implemented non-tariff barriers, and slowed down trade liberalisation.

In the context of growing geopolitical tensions, economists define “slowbalization” as a decline in interest in trade reform and a reduction in political and policy support for trade initiatives. With a score of 26 out of 100, India received a ranking of 24 among the 30 economies evaluated in this year’s Index.

Some of the key key Highlights from the 2023 Hinrich-IMD Sustainable Trade Index includes;

New Zealand holds top position in global trade sustainability ranking, it has retained its top spot for the second consecutive year in the Global Trade Sustainability Ranking, closely followed by the United Kingdom. Singapore has ascended from fifth to third place, while Japan slipped four positions, falling from fourth to eighth place.

With a population of 1,423.33 million and a per capita income of  USD 2,379  as of 2022, India plays a significant role in the global trade landscape. It ranks among the top ten economies in several crucial indicators, including export concentration, labor force growth, exchange rate stability, real GDP growth per capita, exports of goods and services, and gross fixed capital formation. However, India falls to twelfth in monetary policy intervention and 18th in consumer price inflation.

India is noteworthy for its sixth position in inequality, fifteenth in government response to human trafficking, sixteenth in labor standards, and 24th in educational attainment and political stability. Nevertheless, there is room for improvement in areas such as uneven economic development, social mobility, life expectancy, goods produced by forced labor or child labor, and trade in goods at risk of modern slavery.

India ranks last in air pollution but secures the third position in ecological footprint, 10th in renewable energy percentage, and ninth in environmental standards in trade.

Professor Arturo Bris, Director of IMD’s World Competitiveness Center, emphasised the importance of balancing trade and sustainability for economic development, environmental conservation, and societal progress. The Hinrich-IMD Sustainable Trade Index evaluates the readiness and capability of 30 economies to participate in the global trade system while aligning with Sustainable Development Goals.