global-economic-freedom-index-2020-livemint

Context: India’s rank in the Global Economic Freedom Index 2020 dropped 26 spots from 79 to 105 among 162 countries and territories, according to the Economic Freedom of the World: 2020 Annual Report released recently.

Analysis

  • The report, prepared by Canada’s Fraser Institute, was released in India in collaboration with New Delhi-based think tank Centre For Civil Society.
  • The report measures the ‘economic freedom’, or the ability of individuals to make their own economic decisions in a country, by analysing policies and institutions of these countries.
  • It does so by looking at indicators like regulations, the freedom to trade internationally, size of government, property rights, government spending and taxation. 
  • In India, the report was co-published by Delhi-based Centre for Civil Society.
  • According to the 2020 report, India performed worse in terms of size of government, regulations and the freedom to trade internationally. 
  • China ranked worse than India overall and was positioned at 124 on the index. 
  • The ranking is based on 2018 data, newer restrictions on international trade, tightening of the credit market due to NPAs and the impact of Covid-19 on debt and deficits were not reflected in India’s score. 
  • Hong Kong and Singapore rretain teh top two positions.