As per the 16th Index of Economic Freedom that was jointly published by The Heritage Foundation and The Wall Street Journal has reported that there is more economic freedom in Pakistan than India. The score for India’s economic freedom is 53.8, thereby making Indian economy the 124th most liberal economy in the world. On the other hand, Pakistan has a score of 55.2, thus giving it a rank of 117.
India’s score is 0.6 point below its score last year due to reduction in freedom from bribery, business freedom, and financial freedom. It is ranked 24th from 41 countries in the Asia Pacific region, and its general score is lesser than the world average, the Index reported.
The total freedom to commence, run and shut down a business has been hampered by India’s regulatory atmosphere. Beginning a business requires an average of 30 days, as against the global average of 35 days. Getting a business license needs over 18 procedures on an average, which is higher than the rest of the world and 218 days, as per the study.
India’s tax rates and inflation has been comparatively high, with the inflation averaging 7.7% between 2006 and 2008.
Liberalization and modernization have permitted more private banks to vie, but state-owned organizations still continue to rule the banking sector and capital markets, the study observed.
The legal system forces numerous limitations on the land transfer land, and titling problems make buying and selling quite tough.
Corruption is quite high as. India is listed 85th out of 179 countries in Transparency International’s Corruption Perceptions Index for 2008.
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