India, seen as one
of the fastest developing economies, has improved
its ranking on a global economic freedom index,
'The Economic Freedom of The World: Annual Report
2006'.
The latest annual report of Economic Freedom Ratings
developed by the Fraser Institute has given India
a rating of 6.7 out of a possible 10 points. India's
ranking in the global economic freedom rating list
has improved 13 notches from 66 last year to 53
this year.
The report measures the performance of countries
on the freedom it allows on various parameters like
the size of government, access to money, freedom
to trade globally, labour and credit market regulation.
The India edition of the report published by jointly
by the Centre for Civil Society, Academic Foundation
and Friedrich Naumann Foundation was released in
September 2006. The report formally launched by
Sanjaya Baru, Media Advisor to the Prime Minister
of India, states: "India and China continues
to attract a lot of attention as both have implemented
market-oriented reforms and have reported a rapid
economic growth."
The report, which uses 2004 data and takes 1970
as base, rates Hong Kong and Singapore once again
at the top position. In the 130-nation index, New
Zealand, Switzerland and the US together occupy
the third place while India's 53rd rank is shared
with Malaysia, Poland, South Africa, Trinidad and
Tobago, Georgia and Armenia.
India scoring 6.7 ranks at 53–the highest
rank in South Asia–while Nepal with 5.2 ranks
worst at 118. Sri Lanka with 6 ranks 83, while Pakistan
and Bangladesh with 5.7 rank 95. Yet the detailed
economic freedom sub-component ratings suggest areas
of improvement. For instance India has the second
worst ranking in credit market regulations (114),
implying clearly the need to de-nationalize the
banking system and deregulate financial market.
Parth J Shah, President of Centre for Civil Society,
in his introduction shows that the mountains of
aid given to India has done less for the country
than its economic liberalization policy in the past
decade.
Click for a copy of the Introduction
to the India Edition, while the full report
of the Economic
Freedom of the World 2006 is available under
our Economic Index Section.
|
