Skip to main content

Economic freedom: India ranks worse than Pakistan, Bangladesh, Nepal, Sri Lanka, says US conservative thinktank

India's labour freedom: Heritage Foundation
By A Representative
In a major setback to Prime Minister Narendra Modi’s claimed successes in opening Indian market for foreign investors, the world’s foremost conservative political think tank, Heritage Foundation, has ranked India 143rd in economic freedom index, worse than Pakistan (141st), Bangladesh (128th), Nepal (125th), and Sri Lanka (112th).
Based in Washington DC, Heritage Foundation, in its latest report titled “2017: Index of Economic Freedom”, has found that, among the comparable countries which form BRICS, Brazil ranks 140th, Russia 114th, China 111th, and South Africa 81st -- all better than India.
Interestingly, the Heritage Foundation’s 2016 economic freedom report ranks India 123rd, suggesting India has slipped by a whopping 20 points in just one year.
The report calls India a “significant force in world trade”, but insists, “Corruption, underdeveloped infrastructure, and poor management of public finance continue to undermine overall development” of the country despite the fact that “the economy has sustained an average annual growth rate of about 7 percent over the past five years.”
“Growth is not deeply rooted in policies that preserve economic freedom”, the report believes, adding, “Progress on market-oriented reforms has been uneven.”
The report regrets, “The state maintains an extensive presence in many areas through public-sector enterprises”, adding, “A restrictive and burdensome regulatory environment discourages the entrepreneurship that could provide broader private-sector growth.”
The report underlines, “State-owned enterprises distort the economy. Despite some liberalization and modernization, state-owned institutions dominate the banking sector and capital markets.”
Yet, the report calls India is “a stable democracy”, and praises Modi for “reinvigorating India’s foreign policy”, bolstering “ties with the US, particularly in defense cooperation.”
But it does not fail to mention that “India has technology and manufacturing sectors as advanced as any in the world as well as traditional sectors characteristic of a lesser developed economy”, adding, “Extreme wealth and poverty coexist as the nation both modernizes rapidly and struggles to find paths to inclusive development for its large and diverse population.”
The report further says, “Real property rights are generally well enforced in metropolitan areas, although titling remains unclear in many other urban and rural areas”, adding, “The judiciary is independent, but courts are understaffed and lack the technology necessary to clear an enormous backlog.”
The report says, it is “domestic and international pressure” alone which led to the “passage of legislation aimed at addressing corruption”, but adds, “There is little evidence that it is being implemented effectively.”
Suggesting that the taxes are high, the report emphasises, “The top individual income tax rate is 30.9 percent (including an education tax). The top corporate tax rate is 34.6 percent. The overall tax burden equals 16.6 percent of total domestic income.”
It adds, “Government spending has amounted to 27.4 percent of total output (GDP) over the past three years, and budget deficits have averaged 7.3 percent of GDP. Public debt is equivalent to 67.2 percent of GDP.”
“The regulatory framework is burdensome, and the legal framework is weak”, the report states, adding, “Labour regulations continue to evolve, and the informal economy is an important source of employment.”
The report is critical of the Government of India depending heavily of subsidies, saying, “Although the IMF reported in 2016 that India’s ‘major subsidies’ (e.g., on fuels and fertilizer) dropped below 2 percent of GDP, the government is introducing a new basic foods subsidy for around two-thirds of the population.”

Comments

C S JACOB said…
One needs to know the parameters based on which the ranking was done. The drop in the index from 2014 is too steep which is difficult to accept.

TRENDING

Wave of disappearances sparks human rights fears for activists in Delhi

By Harsh Thakor*  A philosophy student from Zakir Hussain College, Delhi University, and an activist associated with Nazariya magazine, Rudra, has been reported missing since the morning of July 19, 2025. This disappearance adds to a growing concern among human rights advocates regarding the escalating number of detentions and disappearances of activists in Delhi.

How community leaders overcome obstacles to protect forests and pastures in remote villages

By Bharat Dogra  Dheera Ram Kapaya grew up in such poverty that, unable to attend school himself, he would carry another boy’s heavy school bag for five kilometers just to get a scoop of daliya (porridge). When he was finally able to attend school, he had to leave after class five to join other adolescent workers. However, as soon as opportunities arose, he involved himself in community efforts—promoting forest protection, adult literacy, and other constructive initiatives. His hidden talent for writing emerged during this time, and he became known for the songs and street play scripts he created to promote forest conservation, discourage child marriages, and support other social reforms.

‘Act of war on agriculture’: Aruna Rodrigues slams GM crop expansion and regulatory apathy

By Rosamma Thomas*  Expressing appreciation to the Union Agriculture Minister for inviting suggestions from farmers and concerned citizens on the sharp decline in cotton crop productivity, Aruna Rodrigues—lead petitioner in the Supreme Court case ongoing since 2005 that seeks a moratorium on genetically modified (GM) crops—wrote to Union Minister Shivraj Singh Chouhan on July 14, 2025, stating that conflicts of interest have infiltrated India’s regulatory system like a spreading cancer, including within the Indian Council for Agricultural Research (ICAR).

The GMO illusion: Three decades of hype, harm, and false hope

By Sridhar Radhakrishnan  Three decades of hype, billions of dollars spent, and still no miracle crop. It's time to abandon the GMO biotech fairy tale and return to the soil, the seed, and the farmer. “Trust us,” they said. “GMOs will feed the world.” Picture a world where there is plenty of food, no hunger, fields grow without chemical pesticides, children are saved from malnutrition, and people live healthily.

Sandra Gonzalez Sanabria: An inspiring life from Colombia’s Amazonian valley

By Vidya Bhushan Rawat*  In the village of Héctor Ramírez, known as Agua Bonita, in La Montañita, Caquetá, Colombia, a vision of peace and renewal is unfolding. In the pre-2016 period, this would have been nearly impossible for outsiders to visit, as it was the epicenter of violent resistance against state oppression. However, after the Peace Accord was signed between the Colombian government and former revolutionaries—marking the end of a 70-year insurgency that claimed over 400,000 lives until 2025, including civilians, rebel fighters, and security personnel—things began to change. Visiting Agua Bonita during the Global Land Forum in Bogotá revealed a village of hope and resilience. Former FARC revolutionaries have settled here and transformed the village into a center of peace and aspiration.

Overriding India's constitutional sovereignty? Citizens urge PM to reject WHO IHR amendments

By A Representative   A group of concerned Indian citizens, including medical professionals and activists, has sent an urgent appeal to Prime Minister Narendra Modi, urging him to reject proposed amendments to the International Health Regulations (IHR) before the ratification deadline of July 19, 2025. 

Indigenous Karen activist calls for global solidarity amid continued struggles in Burma

By A Representative   At the International Festival for People’s Rights and Struggles (IFPRS), Naw Paw Pree, an Indigenous Karen activist from the Karen Human Rights Group (KHRG), shared her experiences of oppression, resilience, and hope. Organized with the support of the International Indigenous Peoples Movement for Self-Determination and Liberation (IPMSDL), the event brought together Indigenous and marginalized communities from across the globe, offering a rare safe space for shared learning, solidarity, and expression.

Activists allege abduction and torture by Delhi Police Special Cell in missing person probe

By A Representative   A press statement released today by the Campaign Against State Repression (CASR) alleges that several student and social activists have been abducted, illegally detained, and subjected to torture by the Delhi Police Special Cell. The CASR claims these actions are linked to an investigation into the disappearance of Vallika Varshri, an editorial team member of 'Nazariya' magazine.

India’s zero-emission, eco-friendly energy strategies have a long way to go, despite impressive progress

By N.S. Venkataraman*   The recent report released by OPEC’s World Oil Outlook 2025 has predicted that by the year 2050, crude oil would replace coal as India’s key energy source. Clearly, OPEC expects that India’s dependence on fossil fuels for energy will continue to remain high in one form or another.