India Ranks 24th in the Hinrich-IMD Sustainable Trade Index 2023
by Prashant Kapadia/NHN
New Delhi, October 2023: The International Institute for Management Development (IMD) and the Hinrich Foundation proudly present the 2023 edition of the Hinrich-IMD Sustainable Trade Index (STI). This year’s release casts a spotlight on a global shift towards “slowbalization” in the post-pandemic world marked by geopolitical uncertainties.
Economists describe “slowbalization” as a diminishing enthusiasm for trade reform and a decrease in political and policy support for trade initiatives, primarily in the context of escalating geopolitical tensions. In this year’s Index, India has secured the 24th position out of the 30 economies assessed, with a score of 26 out of 100.
In response to the evolving global landscape, the STI data highlights a concerning deterioration in non-tariff barriers and trade costs across major economies in 2023 compared to the previous year. Notably, some of the world’s largest economies, expected to lead the charge against “slowbalization,” have instead increased tariffs, imposed non-tariff barriers, and hindered trade liberalization.
Key Highlights from the 2023 Hinrich-IMD Sustainable Trade Index:
New Zealand retains the top spot for the second consecutive year, closely followed by the United Kingdom. Singapore ascends from fifth to third place, while Japan slips four positions, falling from fourth to eighth place.
India, with a population of 1,423.33 million and a per capita income of $2,379 USD (as of 2022), plays a critical role in the global trade landscape.
India ranks among the top ten economies in several crucial indicators including export concentration, growth in the labor force, exchange rate stability, real GDP growth per capita, exports of goods and services, and gross fixed capital formation. However, it falls to 12th in monetary policy intervention and 18th in consumer price inflation.
India impresses with a sixth position in inequality, 15th in government response to human trafficking, 16th in labor standards, and 24th in educational attainment and political stability. There is room for improvement in 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, commented, “Economies adept at balancing trade and sustainability tend to be more developed and experience lower costs in aligning trade with Sustainable Development Goals.”
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 economic growth, environmental conservation, and societal progress.
This annual report, published jointly by IMD’s World Competitiveness Center (WCC) and the Hinrich Foundation since 2022, underscores the importance of addressing global trade challenges in a rapidly evolving world.
For further information and detailed insights, please refer to the full Hinrich-IMD Sustainable Trade Index 2023 report, available on the official website.
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