Gujarat has been ranked as the top state in economic freedom by a report prepared by known policy experts.
The report – The Economic Freedom of the States of India 2012 – was released by Centre for Global Liberty and Prosperity, Cato Institute, in collaboration with Friedrich-Naumann Stiftung, in Hong Kong on Wednesday.
The report has been prepared by known policy experts Bibek Debroy of Centre for Policy Research, Mr. Laveesh Bhandari, Indicus Alaytics, and Ashok Gulati, Commission for Agricultural Costs and Prices. Gujarat displaced Tamil Nadu as the top state with economic freedom and its freedom index score has been rising very fast.
The report estimates economic freedom in the 20 biggest Indian States based on date for 2011, using a methodology adapted from Fraser Institute’s Economic Freedom of the World Annual Reports.
The report has demonstrated significant differences in economic governance that exist in India and has focused on state level reforms to improve inclusive economic growth.
The Index is based on 3 parameters – size of government, comparative study of legal structures and security of property rights and regulation of labour, business.