India has slipped by 10 positions to 112th, out of 159 countries and territories, as it fared quite badly across categories including legal system and regulation, as per Economic Freedom of the World: 2016 Annual Report.
1. Hong Kong and Singapore, once again, occupy the top two positions. Next comes New Zealand and Switzerland, two countries almost always in the top five.
2. Five countries—Canada, Georgia, Ireland, Mauritius, and United Arab Emirates— are tied for fifth place. Australia and United Kingdom conclude the top ten with a tie.
3. The 10 lowest-rated countries are: Iran, Algeria, Chad, Guinea, Angola, Central African Republic, Argentina, Republic of Congo, Libya, and lastly Venezuela.
About the report
The index published in Economic Freedom of the World measures the degree to which the policies and institutions of countries are supportive of economic freedom. e cornerstones of economic freedom are personal choice, voluntary exchange, free- dom to enter markets and compete, and security of the person and privately owned property.
Forty-two data points are used to construct a summary index and to mea- sure the degree of economic freedom in ve broad areas:
1 size of government: expenditures, taxes, and enterprises;
2 legal structure and security of property rights;
3 access to sound money;
4 freedom to trade internationally; and
5 regulation of credit, labor, and business.
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