In global economy Freedom index 2020, India fell to 105th from last year’s 79th, according to the report released by the Fraser Institute in Canada Thursday. Hong Kong once again topped the charts, followed by Singapore, New Zealand, Switzerland, Australia, United States, Mauritius, Georgia, Canada, and Ireland.
What does the report mean?
The report is published in India by the Fraser Institute in Canada in collaboration with the New Delhi-based think tank Center for Civil Society. The report measures how free the country’s policies and institutions are to do business. People living in countries with high economic freedom have more civil and political freedoms, enjoy great prosperity and even tend to live longer. Some decisive factors of economic freedom are the freedom to enter and compete in markets, the security of individuals and private enterprises, voluntary exchange and personal choice. Overall India ranks 105e position in a collective report of all these factors.
Importance of data today
The 2020 report is based on data from 2018 as the latest year of comparable statistics. All indicators such as domestic regulation, size of government, property rights, freedom of international trade, public spending, and taxation are all based on 2018 policies from 162 participating countries and territories. Center for Civil Society President Partha J Shah said: âSince the ranking is based on 2018 data, many new restrictions on international trade, the credit market tightening due to NPAs and the The impact of COVID-19 on debt and deficits is not reflected in India. Goal. “However, India noted a marginal decrease in several parameters such as credit, labor and business regulation (from 6.63 to 6.53), government size (8.22 to 7, 16), the legal system and property rights (5.17 to 5.06) and the freedom to trade internationally (6.08 to 5.71). A score closer to 10 indicates a higher level. high level of economic freedom.
Performance of other major countries
The silver lining here is that China is ranked 124th in the latest global index of economic freedom, well below India. Other notable rankings are Japan (20), Germany (21), Italy (51), France (58), Mexico (68), Russia (89) and Brazil (105). Meanwhile, the lowest ranked countries in the list are African Republic, Democratic Republic of Congo, Zimbabwe, Republic of Congo, Algeria, Iran, Angola, Libya, Sudan and Venezuela.
Points suggested by The Policy Times
- It should be noted that this is based on data from 2018 and since then India has banned a lot of foreign trade in the country which will be reflected negatively in the future economic index.
- The economic index determines the freedom enjoyed by other businesses in the country and a poor ranking does not directly mean lower economic performance.
- However, with the recent 23.9% GDP contraction, India needs to open its doors to foreign investment and business so that the economy can develop mutually.