Index and importance


Index is an annual index to measure the degree of economic freedom in the world's nations.


Who prepares the Index?

Index and ranking is created by The Heritage Foundation and The Wall Street Journal since 1995. The creators of the index claim to take an approach inspired by Adam Smith's The Wealth of Nations, that "basic institutions that protect the liberty of individuals to pursue their own economic interests result in greater prosperity for the larger society".

Who prepares the Index?


How many countries are part of the Index & which policy areas index takes into account?

The Index evaluates 177 countries in four broad policy areas that affect the economic freedom, which are rule of law, government size, regulatory efficiency and open markets. It also takes into consideration some specific categories like property rights, judicial effectiveness, government integrity and tax burden. The ranking scores aspects of economic freedom between 0 and 100, with 0 meaning "no economic freedom" and 100 meaning "total economic freedom". There are twelve aspects divided into four categories.

Rule of law

Property rights

Judicial effectiveness

Government integrity


Government size

Tax burden

Government spending

Fiscal health

Regulatory efficiency

Business freedom

Labor freedom

Monetary freedom


Market openness

Trade freedom

Investment freedom

Financial freedom



India's economic freedom score is 52.9, making its economy the 131st freest in the 2023 Index. Its score is 1.0 point lower than last year.

India is ranked 27th out of 39 countries in the Asia–Pacific region, and its overall score is below the world and regional averages.

The foundations for long-term economic development remain fragile without an efficiently functioning legal framework. The state’s presence in many sectors through state-owned enterprises is extensive, and the legacy of decades of failed socialist policies includes a substantial tolerance for government meddling in economic activity. Progress with market-oriented reforms has been uneven.

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