According to the latest Economic Freedom of the States of India (EFSI) 2013 report, Gujarat is the top state in economic freedom. EFSI 2013 estimates the economic freedom in 20 biggest Indian states, using a methodology adapted from the Fraser Institute’s Economic Freedom of the World (EFW) annual reports. NaMo has played an important role in this regard.
to the report, Gujarat has widened its lead at the top of the
economic freedom table, with an index score of 0.65 (on a scale from
0 to 1.0). Gujarat, which was ranked 5th in the first
report in 2005 with a score of 0.46, has been ranked at 1st position
in the 2013 report with a score of 0.65. The report seeks to
measure the level of economic freedom within vast, diverse India, and
has, this year, highlighted the importance of state-level policy
improvements and experimentation to produce better economic and
Economic Freedom Index is based on 3 parameters – Size of
Government (expenditures, taxes and enterprises), Legal structure and
security of property rights and Regulation of Labour and
Business. Each state is scored and ranked on these three areas
and then given an overall score and rank.
the aspect of size of Government, the report states, “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 Shri Narendra Modi has served as
the state’s Chief Minister for the entire period that is being
mentioned by the author of the report.
has also witnessed significant improvement in its index values and
retains its pre-eminent position in ‘Regulation of Labour and
Business.’ The report states that Gujarat has consistently been the
best state in this area. It has also recorded maximum improvement in
index score since 2011.''
the period 2005-11, Gujarat recorded an average growth rate of 12 per
cent in GSDP at 2004-05 constant process, which is the highest in
large states. However, the report also states that as many as
seven states have suffered a decrease in their economic freedom
ratings in 2013 compared to 2011.