According to the Sustainable Trade Index (STI) 2024, India which is the 5th largest economy in the world, ranked at 23rd position globally with overall score of 24 out of 100. India has improved its ranking by 1 place from 24th spot in 2023.
- As per the STI 2024, New Zealand has retained its 1st position as the “most sustainable trade economy” for the 3rd consecutive year with overall score of 100.
- United Kingdom (UK) ranks 2nd and followed by Australia in 3rd position respectively.
About STI 2024:
i.This is the 3rd edition of the STI , which is published annually by International Institute for Management Development (IMD) World Competitiveness Center (WCC) and the Hinrich Foundation since 2022.
ii.The STI measures the capacity and readiness of world’s 30 economies to participate in the global trading that supports the long-term goals of economic growth, environmental protection, and societal development.
iii.The countries are ranked in STI based on 3 main pillars: economic growth, societal advancement, and environmental resilience.
- Economic Pillar: Measures the ability of economy to ensure and boost economic growth through international trade, considering infrastructure, innovation, and export diversification.
- Societal Pillar: Focuses on human capital, income inequality, and political stability.
- Environmental Pillar: Evaluates sustainable trade practices, including pollution, carbon emissions, and natural resource management.
Top 5 Economies in STI 2024:
| Rank | Name of the Country | Overall Score (out of 100) |
|---|---|---|
| 1 | New Zealand | 100 |
| 2 | The United Kingdom (UK) | 97.69 |
| 3 | Australia | 87.37 |
| 4 | Singapore | 85.72 |
| 5 | Japan | 81.52 |
| 23 | India | 24 |
Key Highlights:
- New Zealand secured 1st position in both Societal and Environmental Pillars and rises from 8th to 7th in the Economic Pillar.
- The United Kingdom retains its 2nd position but drops from 5th to 6th in the Economic Pillar.
- Singapore is ranked 4th, followed by Japan (5th), South Korea (6th), and Hong Kong SAR (7th).
- Countries like Canada, Taiwan, and the USA are in the top 10 sustainable trade economies.
Bottom Performers:
- Since the 1st edition of STI. Russia has been consistently ranked lowest, with a score of 0 and a consistent 30th in Environmental and 25th in Economic Pillars.
- Pakistan, Bangladesh, Myanmar, Sri Lanka, and Papua New Guinea are among the bottom 5 economies in STI 2024.
India’s Performance in STI 2024:
India’s STI 2024 and its ranking position of three pillars:
- 16th in Economic Resilience (Score: 62.3) shows strong economy.
- 28th in Societal Pillar (Score: 13.32) due to poverty, inequality, and lack of amenities.
- 28th in Environmental Pillar (Score: 43.1) amid air pollution, deforestation, and water scarcity.
About the International Institute for Management Development (IMD):
The International Institute for Management Development (IMD) was established in 1946 as the International Management Institute (IMI) and later renamed to IMD in 1990.
President- David Bach
Headquarters- Lausanne, Switzerland
