Top 10 Most Sustainable Economies in 2024: India’s Position Explained

The Sustainable Trade Index 2024, jointly published by the Hinrich Foundation and IMD, highlights the global shift toward sustainability in trade. As the world recovers from the COVID-19 pandemic, nations are focusing on resilience to combat potential future crises such as climate change, geopolitical tensions, and economic instability. The Sustainable Trade Index evaluates economies based on three critical pillars:

1. Economic Growth
2. Societal Advancement
3. Environmental Resilience

This index emphasizes the importance of balancing economic, social, and environmental factors in trade practices to ensure sustainable and inclusive growth.

Defining Sustainable Trade

Sustainable trade involves mutually beneficial outcomes for trading partners while maintaining a balance between:

• Economic stability
• Social progress
• Environmental conservation

Global economies are increasingly adopting policies to strengthen domestic industries, build a resilient workforce, and integrate trade with environmental goals. By addressing these dimensions, economies can establish robust systems that withstand shocks and promote green development.

Top 10 Most Sustainable Trade Economies in 2024

India’s Performance: A Detailed Analysis

India’s Overall Rank: 23rd Globally

Despite being the fifth-largest economy in the world, India’s performance in the Sustainable Trade Index highlights significant economic strengths but also reveals critical challenges in societal and environmental dimensions.

India’s Scores Across Pillars:

• Economic Factors: 62.3
• Societal Aspects: 13.3
• Environmental Considerations: 43.1

Economic Performance: A Strong Foundation

India’s economic score of 62.3 showcases its rapid economic growth and the implementation of pro-growth policies. Key drivers include:

• A booming industrial sector.
• Expanding global trade partnerships.
• Efforts to strengthen domestic manufacturing through initiatives like ‘Make in India’.

However, economic inequalities persist, limiting India’s ability to create an equitable workforce and reduce disparities.

Societal Challenges: A Need for Reform

With a score of 13.3, India’s societal performance reflects significant areas of concern, including:

• Poverty: Despite progress, millions still live below the poverty line.
• Gender Inequality: Women face barriers in accessing education, employment, and financial independence.
• Healthcare Access: Unequal access to healthcare facilities continues to be a challenge.

Investments in education, social infrastructure, and gender equality are crucial to improve India’s societal standing.

Environmental Factors: A Mixed Bag

India’s environmental score of 43.1 highlights both progress and persistent issues:

Strengths:

• Adoption of renewable energy solutions, including solar and wind power.
• Participation in international agreements like the Paris Accord.

Challenges:

• Severe air pollution, especially in urban areas.

Deforestation and loss of biodiversity.

• Limited progress in waste management and water conservation.

To enhance environmental sustainability, India must adopt stricter policies to curb pollution and promote sustainable practices.

Global Implications of India’s Position

India’s rank highlights its pivotal role in the global economy and its potential to drive sustainable trade practices. However, the low scores in societal and environmental pillars emphasize the need for:

1. Comprehensive policies addressing social inequalities.
2. Aggressive measures to tackle climate change and pollution.
3. Enhanced collaboration with global partners to adopt best practices in sustainability.

Summary of News: Sustainable Trade Index 2024