Gujarat is Top State in Economic Freedom

28 Mar

Gujarat is the top state in economic freedom! This the Economic Freedom of the States of India 2012 report says. It estimates the economic freedom in the 20 biggest Indian States based on the date for 2011. 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.

Gujarat displaced Tamil Nadu as the top state with economic freedom and its freedom index score has been raising very fast.

1) On Size of Government : “Gujarat’s is a well-known success story through much of the 2000s.  Moreover it has had major successes in agriculture, social welfare programmes, and water resource management.  All of this is being achieved without an inordinate increase in the size of the government.”

It may be noted that Narendra Modi has served as the state’s Chief Minister for the entire period that is being mentioned by the authors of the report.

2) Comparative Study of Legal Structures and Security : “As Gujarat leaves behind its sordid past of communal violence and destruction, other States are unable to improve security of life and property in the manner required.  This puts a serious question mark on the sustainability of high economic growth in such States.”


Under Shri Modi, this has long become history and the state is scaling new heights of progress as one united team!

3) On Regulation of Labour and Business : Gujarat has witnessed significant improvement in its index values and retains its pre-eminent position in ‘Regulation of Labour and Business.’

According to the report, “Gujarat has significantly improved in its rating from 0.47 in 2005 to 0.64 in 2011, mainly driven by better legal and regulatory performance.”


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