India ranks 96th on Economic Freedom Index; HK, Singapore retain top spot

India’s rank improved by a couple of notches, but it was still placed 96th among 162 countries in this year’s report on Economic Freedom in the World, released on Tuesday by the Centre for Civil Society (CCS) in conjunction with Canada’s Fraser Institute. Last year, India’s rank was 98.

India improved its score on parameters such as legal system and property rights, access to sound money, freedom to trade internationally and regulation of credit, labour and business. However, its score declined in size of the government. 

In overall ranking, India was evenly placed among BRICS nations. While Russia and South Africa are ahead of India at 87th and 94th, China and Brazil are behind at 108th and 144th positions. The 2018 report is based on data from 2016. 

Hong Kong and Singapore again topped the index, continuing their streak as the first and the second country, respectively. New Zealand, Switzerland, Ireland, the US, Georgia, Mauritius, the United Kingdom, Australia and Canada (tied for 10th) were among the top 10.

The report said 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 live longer. 

For example, countries in the top quartile (25 per cent) of economic freedom (such as the UK, Japan and Ireland) had an average per capita income of $40,376 in 2016 compared to $5,649 for the bottom quartile countries (such as Venezuela, Iran and Zimbabwe).

And life expectancy is 79.5 years in the top quartile countries compared to 64.4 years in the bottom quartile.

“Where people are free to pursue their own opportunities and make their own choices, they lead more prosperous, happier and healthier lives,” said Fred McMahon, Dr. Michael A. Walker Research Chair in Economic Freedom with the Fraser Institute.