Sustainable Trade Index, 2024

Current Context : Recently, India has been ranked 23rd on the Sustainable Trade Index 2024.

Ranking Metrics:

• Economies are assessed across three pillars:
  • Economic(e.g., trade openness, economic resilience).
  • Societal(e.g., workforce resilience, universal health coverage).
  • Environmental(e.g., climate change mitigation, resource management).

Best Performing Economies:

• New Zealand leads the index, excelling in societal and environmental categories.
• United Kingdom ranks second, maintaining its position for three years.
• Australia is third, showing significant improvement in environmental performance.

What is the Sustainable Trade Index (STI)?

• It is a framework created by the Hinrich Foundation and the IMD World Competitiveness Center in 2022 to assess how well 30 economies balance economic growth, societal well-being, and environmental stewardship in their trade practices.

Objective:

• The index measures “sustainable trade,” defined as trade that supports growth, protects the environment, and enhances societal development, ensuring mutually beneficial outcomes for trading nations.