India has jumped 13 places in the last one year to be at 130th spot in the latest annual Index of Economic Freedom.
- This index is released by an American think-tank, Heritage Foundation.
- Last year in 2017 India was ranked at 143 among 180 countries with a score of 52.6
- India is now ranked 30th among 43 countries in Asia Pacific region.
- India's economic freedom score is 54.5, making its economy the 130th freest in the 2018 Index.
- Its overall score has been increased by 1.9 points due to the improvements in judicial effectiveness, business freedom, government integrity and Physical health.
Global Economic Freedom Index
- The index was released by top US-based Think Tank, The Heritage Foundation.
- It ranks countries based on their score ranging from 0 to 100. 0 indicates the least free economy whereas 100 indicates the most free economy.
- The score is based on 12 factors of economic freedom, which are separated into four categories, using statistics from international organizations like World Bank, IMF, Economist Intelligence Unit and Transparency International.
- These 12 factors are property rights, government integrity, tax burden, judicial effectiveness, government spending, fiscal health, business freedom, monetary freedom, labour freedom, trade freedom, investment freedom and financial freedom.
- The 5 different categories are-
- Free (80-100)
- Mostly Free (70.0-70.9)
- Moderately Free (60.0-60.9)
- Mostly Unfree (50.0-50.9)
- Repressed (0-49.9)
Highlights of the 2018 Economic Freedom report
- The world economy overall is rated moderately free and world average has now risen three and a half points, from 57.6 to 61.1 since the first edition of the index was released in 1995.
- The index is topped by Hong Kong which has the freest economy according to this report.
- India is developing into open-market economy.
- The overall development of India is undermined by corruption, underdeveloped infrastructure, restrictive regulatory environment and poor financial and budget management.
- The Indian judiciary is independent but the courts lack staff and technology required to clear the backlog.
List of top 10 countries in Global Economic Freedom Index report
- Hong Kong
- Singapore
- New Zealand
- Switzerland
- Australia
- Ireland
- Estonia
- UK
- Canada
- UAE
Expected Questions
What is India's rank in Global Economic Freedom Index 2018?
a. 130
b. 143
c. 121
d. 109
e. 156
Global Economic Freedom Index 2018 is released by The Heritage Foundation which is a think tank of
a. Hungary
b. Russia
c. United Nations
d. China
e. France
Which of the following countries topped the Global Economic Freedom Index 2018?
a. Combodia
b. Canada
c. Ireland
d. Hong Kong
e. Switzerland
