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India ranked 121st & Singapore Retains 1st Rank in the 2021 Economic Freedom Index

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Singapore ranks First, India ranks 121st globally & 26th in Asia-PacIndia with a score of 56.5 was ranked 121 (category – ‘Mostly Unfree’) in the ‘2021 Index of Economic Freedom’ (27th Annual Edition) released by The Heritage Foundation.  Singapore topped the list for the 2nd time in a row followed by New Zealand & Australia.

  • India ranked 26th among 40 countries in the Asia–Pacific region, and its overall score is below the regional and world averages.
  • This is the 1st time that the index has been published after the COVID-19 Pandemic.
  • Around 184 Countries have been covered in the Index; the Period of study is from July 2019 – June 2020.
  • For the 1st time, The Heritage Foundation has excluded Hong Kong from its rankings. Hong Kong had topped the Index for 25 out of 27 years (1995-2019).
  • Overall, the Global Economy remains ‘Moderately Free’ in the 2021 Index. The Global Average of economic freedom remained unchanged at 61.6 for the second year in a row (highest average score in Index history).

Rank Country Overall Score Category 
121 India 56.5 Mostly Unfree
1 Singapore 89.7 Free
2 New Zealand 83.9 Free
3 Australia 82.4 Free

Ranking in Asia–Pacific region:

Singapore is ranked 1st among 40 countries in the Asia–Pacific region.India ranked 26th.

Top 3 Country in Asia Pacific Region:

1.Singapore

2.New Zealand

3.Australia

Methodology

It is based on 12 freedoms which are categorized into 4 Broad Categories or 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, Labor Freedom, Monetary Freedom)
  • Open Markets (Trade Freedom, Investment Freedom, Financial Freedom)

Regional wise & Country-wise Rankings

  • Asia-Pacific countries scored lower than the world average in 7 of 12 indicators.
  • Major Economies – UK – 7th, USA – 20th, Japan – 23rd, Germany – 29th & China – 107.
  • Lowest Ranked Countries – North Korea – 178, Venezuela – 177, Cuba – 176.

About the Index:

The Index of Economic Freedom is an annual index and ranking created in 1995 by conservative think-tank The Heritage Foundation and The Wall Street Journal to measure the degree of economic freedom in the world’s nations.

Click here to read the full report 

Recent Related News:

i.September 11, 2020, India took the 105th position in the 24th Edition of Economic Freedom of the World: 2020 Annual Report by Canada’s Fraser Institute.

ii.September 17, 2020, World Bank released the report titled “The Human Capital Index 2020 Update: Human Capital in the Time of COVID-19”. India has been placed at the 116th position among 174 countries in the Human Capital Index 2020.

About The Heritage Foundation:
President – Kay C. James
Headquarters – Washington DC., USA