India has jumped 11 spots on Global Economic Freedom index from last year’s 96th spot to the current ranking of 79. The latest gain is promising news for the Indian economy which is currently reeling under slowdown, Indian think-tank Centre for Civil Society said on Friday. “It is well established that economic freedom fosters economic growth by affecting incentives leading to efficient use of resources. The freedom to choose and supply resources, competition in business, openness to trade, and legally protected property rights are central ingredients for economic progress,’” said Sudhanshu Neema, Lawyer and Economist, Centre for Civil Society. The Economic Freedom of the World Report 2019 surveyed a total of 162 countries.
India’s current ranking is better than one of the major economies of the world — China — which stood at 113th. Two Asian countries viz Hong Kong and Singapore continue their winning streak of last year with 1st and 2nd position respectively. New Zealand, Switzerland, the United States, Ireland, the United Kingdom, Canada, Australia, and Mauritius are in the top 10 and have most economic freedom measured via a gamut of factors including levels of personal choice, ability to enter markets, the security of privately-owned property etc. “According to research in top peer-reviewed academic journals, people living in countries with high levels of economic freedom enjoy greater prosperity, more political and civil liberties, and longer lives,” Centre for Civil Society said.
On the other hand, Iraq, Republic of Congo, Egypt, Syria, Democratic Republic of Congo, Angola, Algeria, Sudan, Libya, and Venezuela are at the bottom of the list where economic freedom is most curbed. “Some despotic countries such as North Korea and Cuba can’t be ranked due to lack of data,” the statement from Centre for Civil Society said.
Here’s how India scored on key components of economic freedom.