India improves its economic freedom score

With the Indian government trying to fast-track reforms, India improved by 1.6 points in its overall score. India was ranked 123 in 2016 Index of Economic Freedom, released by conservative US think-tank Heritage Foundation on February 1.

India with a score of 56.2 out of 100 was among 32 countries which achieved their highest economic freedom scores ever in the 2016 index, though it is still rated as ‘mostly unfree’. India scored its best scores on government spending (78.1), fiscal freedom (77.1), monetary freedom (72.8), and trade freedom (71.0). However, on freedom from corruption, India scored 38, while it was rated 40 on financial freedom, 35 on investment freedom, and 55 on property rights.

Among the progress of BRICS nations Brazil, Russia, India, China, and South Africa has stalled, according to the index which analyses economic policy developments related to economic freedom in 186 economies. India continued to remain the exceptional BRICS economy, with a high rate of economic growth.

Russia plunged in the rankings to 153rd, with its score deteriorating by 1.5 points. South Africa, Brazil, and China declined to 80th, 122nd, and 144th, respectively.

The index which rates countries as ‘free’ (scores above 80), ‘mostly free’ (70-80), ‘moderately free’ (60-70), ‘mostly unfree’ (50-60), and ‘repressed’ (below 50), showed that the global economic freedom has advanced for the fourth year in a row.

India has been rated as a bright spot in an otherwise gloomy global economy. The recent economic steps unleashed by the government are still being viewed with cautious optimism.

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