The selection of optimum number of indicators is the key to any Sustainable Development Indicator (SDI) research. Indicators, too less in number may be inadequate to convey the message and; too many may dilute the purpose. To arrive at a limited number of indicators from a larger set of potential ones, a set of criteria is applied. In the past SDI-initiatives, emphasis was not laid on structuring criteria; these were invariably considered in a linear way. This paper proposes a framework to organize criteria in a tree fashion at successive levels. For each level, the weights of a criterion relative to others are determined by following Analytical Hierarchy Process where experts' opinions are considered. For aggregation of scores, `displaced ideal' method is proposed over linear additive model.