India slips to 112th on World Economic Freedom Index
Q. India slipped by how many positions to 112th in the World Economic Freedom Index?- Published on 22 Sep 16a. 10
b. 11
c. 12
d. 13
ANSWER: 10
India slipped by 10 ranks to 112th in a list of 159 countries and territories.
- It fared badly in all categories including legal system and regulation according to the Economic Freedom of the World; 2016 Annual Report
- THe report say China, Bangladesh and Pakistan ranking back at 113, 121 and 133
- Bhutan, Nepal and Sri Lanka fared better
- India fared badly in legal system and property rights (86) sound money policies (130) freedom for global trade (144) and regulation(132)
- Except for size of government where it fared better (8) a negative performance was evident across the index
- Report is based on 2014 data and measures economic freedom by analysing policies and institutions of the countries and territories studied
- The report uses 42 distinct variables, from for example the World Bank, to measure this. Some examples: tax rates, degree of juridical independence, inflation rates, costs of importing, and regulated prices.
- Each of the 5 areas above is given equal weight in the final score.
The cornerstones of economic freedom are:
- Personal choice rather than collective choice;
- Voluntary exchange coordinated by markets rather than allocation via the political process;
- Freedom to enter and compete in markets; and
- Protection of persons and their property from aggression by others
In practice, the index measures:
- Size of Government;
- Expenditures, Taxes, and Enterprises;
- Legal Structure and Security of Property Rights;
- Access to Sound Money;
- Freedom to Trade Internationally; and
- Regulation of Credit, Labor, and Business.
