India has ranked a dismal 143
rd in an annual index of economic freedom by a top American think-tank, behind its several South Asian neighbours including Pakistan.
The progress on market-oriented reforms has been “uneven” as per the index.
The Heritage Foundation in its Index of Economic Freedom report said despite India sustaining an average annual growth of about 7 per cent over the past five years, growth is not deeply rooted in policies that preserve economic freedom.
Putting India in the category of “mostly unfree” economies, the conservative political think-tank said progress on market-oriented reforms has been “uneven”.
Also, India’s overall score of 52.6 points is 3.6 points less than that of last year, when India was ranked 123rd.
Hong Kong, Singapore and New Zealand topped the index.
Among South Asian countries, only Afghanistan (163) and Maldives (157) were ranked below India. Nepal (125), Sri Lanka (112), Pakistan (141), Bhutan (107), and Bangladesh (128) surpassed India in economic freedom.
The think-tank, however, credited Prime Minister Narendra Modi with “reinvigorating” India’s foreign policy
India is a significant force in world trade, the report noted, but corruption, underdeveloped infrastructure, and poor management of public finance undermine overall development.
China with a score of 57.4 points - an increase of 5.4 points compared to previous year - was placed at 111 position. The United States was ranked 17 with 75.1 points.
The world average score of 60.9 is the highest recorded in the 23-year history of the index. Forty-nine countries - the majority of which are developing countries, but also including countries such as Norway and Sweden - achieved their highest-ever index scores.
