India ranks low in economic freedom: Report

MUMBAI: Factors like high level of corruption, poor investment norms and high inflation among others have made India one of the least economically free countries in the world, a report on Friday said.

According to an annual repor, Index of Economic Freedom, released here today by The Heritage Foundation and The Wall Street Journal, India is ranked 124 in the world when it comes to economic freedom.

Interestingly, other BRIC nations--Brazil, Russia and China have also fallen in the category of 'mostly unfree' nations with ranks 113, 143 and 140 respectively.

Hong Kong has got the highest ranking in the list whereas North Korea remained as the most 'repressed' country, implying least economic freedom, at 179th position, the survey said.

The report observed that India's tax rates and inflation have been relatively high, with inflation averaging 7.7 per cent between 2006 and 2008. Early this year, another survey conducted by the Foundation had ranked India at 85th out of 179 countries in terms of corruption.

"India is no doubt considered as a hot destination for FDI...which has improved over the years. But when it comes to economic freedom it fares badly. It is due to issues like high level of corruption and poor investment freedom," Heritage Foundation's Director of Foreign Policy and Defence Studies, Kim R Holmes, told reporters here today.

Commenting on the survey, Holmes said that there should be a level playing field for the companies to do business, a free trading system and transparency in government procedures to achieve economic freedom.