India 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).
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:
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.
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