Economic Freedom Index: India ranks 130; up by 13 spots
With an economic freedom score of 54.5, India was ranked 130 in the 2018 annual index of Economic Freedom released by The Heritage Foundation, an American conservative public policy think-tank based in Washington. India jumped 13 spots in last one year to reach this position. In 2017, India with 52.6 points was ranked at 143 among 180 countries, two spots below Pakistan. Here's more.
India's overall score increased by 1.9 points
India's overall score has increased by 1.9 points, led by improvements in judicial effectiveness, business freedom, government integrity, and fiscal health. India is ranked 30th among 43 countries in the Asia Pacific region, and its overall score is below the regional and world averages.
Economic liberalization measures accelerated India's growth: Report
Noting that India is developing into an open-market economy, the Index said traces of its past autarkic policies still remain. Economic liberalization measures, including industrial deregulation, privatization of state-owned enterprises and reduced controls on foreign trade and investment that began in the early 1990s, accelerated growth. While PM Narendra Modi promised sweeping economic reforms, Index said the reforms thus far have been modest.
China ranks 110, Pakistan 131 in 2018 Economic Freedom Index
China with 57.4 points was ranked 111 in the 2017 Index of The Heritage Foundation. As per the 2018 Index of Economic Freedom, China has jumped one spot to 110 while Pakistan is now at the 131st position.
Corruption, underdeveloped infrastructure, burdensome regulatory undermine overall development
"Corruption, underdeveloped infrastructure, a restrictive and burdensome regulatory environment, and poor financial and budget management continue to undermine overall development," the report said. "India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services." Although land-titles in some urban/rural areas remain unclear, real property rights in large metropolitan areas are generally well enforced.
Indian judiciary is independent; but courts are understaffed
"The judiciary is independent, but the Indian courts are understaffed and lack the technology necessary to clear an enormous backlog. Although officials are often caught accepting bribes, a great deal of corruption goes unnoticed and unpunished," according to the Heritage Foundation. Observing that the non-tariff barriers significantly impede trade, the Heritage Foundation said the government's openness to foreign investment is also below average.
Financial sector is dominated by state owned institutions
"State-owned institutions dominate the financial sector, and foreign participation is limited. In public-sector banks, troubled assets account for about 10% of total assets," the Heritage Foundation said.
