India has ranked 130th out of 180 countries on 2018 Index of Economic Freedom published by the Heritage Foundation, an American think-tank.
About Index of Economic Freedom:
Economic Freedom in the context of this index, refers to a free society, wherein individuals are free to work, produce, consume and invest in any way they please and governments allows free movement of labour, capital, and goods.
- Index of Economic Freedom is an annual index and ranking which was first created in 1995.
- The economic freedom is measured by assessing the countries of on 12 quantitative and qualitative factors placed under four broad categories/pillars of economic freedom Rule of Law (property rights, government integrity, judicial effectiveness), Government Size (government spending, tax burden, fiscal health), Regulatory Efficiency (business freedom, labour freedom, monetary freedom) Open Markets (trade freedom, investment freedom, financial freedom).
- Data considered for 2018 Index of Economic Freedom covers the second half of 2016 through the first half of 2017.
Highlights of 2018 Index of Economic Freedom:
India’s 130th rank on 2018 Index of Economic Freedom marks a jump of 13 spots as compared to 143rd rank in 2017.
- For 2018 edition, India’s economic freedom score was 54.5, registering an improvement of 1.9 points as compared to previous year.
- The year-on-year improvement has been largely attributed to business freedom, judicial effectiveness, government integrity and fiscal health.
- India ranked 30th among the 43 countries in the Asia-Pacific region and its overall score was below the regional and world averages.
- Heritage Foundation has outlined that India is perceived to be moving into an open-market economy.
- Despite of high economic growth, corruption, a restrictive and burdensome regulatory environment, underdeveloped infrastructure and poor financial and budget management continue to undermine overall development.
- Among India’s prominent neighbours, China ranked 110th while Pakistan ranked 131st.
- Hong Kong topped the index with Economic Freedom Score of 90.2.
2018 Index of Economic Freedom – Top 10: