India ranked 128th globally in the 2025 Index of Economic Freedom

Out of 176 countries included in the 2025 Index of Economic Freedom, India is ranked 128th (and 26th at the regional level) with a score of 53.0. It still falls in the category of "Mostly Unfree" economic freedom, while Singapore, at first place, remains the world’s freest economy.

• The 2025 Index of Economic Freedom highlights the weakness of the global economy, as it remains overall “Mostly Unfree,” even though the global average economic freedom score increased by 1.1 points to 59.7, up from 58.6 last year.
• Out of 176 countries included in the 2025 Index, only three countries (down from four last year) earned the status of “Economically Free.”
• Singapore, at first place, remains the world’s freest economy, followed by Switzerland in second and Ireland in third. Taiwan has retained its fourth ranking, which is its highest ever ranking in the Index of Economic Freedom.
• Meanwhile, the world’s largest economy, the United States, is ranked 26th, and its score fell to 70.2, marking its lowest level in the history of the index.
• On the other hand, almost 50% of the economies in the index, i.e., 89 economies, are considered “Mostly Unfree,” among which about 29 countries, including Pakistan (#150) and China (#151), are classified as “Repressed.”

Explanation of India’s global position:

• India, in 2025, is ranked 128th (and 26th at the regional level) with a score of 53.0. It still falls in the category of "Mostly Unfree" economic freedom.
• India struggles with fiscal health, with a very low score of 6.2, while both investment freedom and financial freedom scored 40, and government integrity scored 37.6.
• However, on the positive side, India is relatively strong in areas like government spending (74.2), business freedom (72.3), and tax burden (71.3), and has moderate scores in areas like property rights (51.1), judicial effectiveness (53.2), and labor freedom (59.0).

Top 10 countries in the 2025 Index of Economic Freedom

• 1 Singapore 84.1 Free
• 2 Switzerland 83.7 Free
• 3 Ireland 83.1 Free
• 4 Taiwan 79.7 Mostly Free
• 5 Luxembourg 79.5 Mostly Free
• 6 Australia 79.3 Mostly Free
• 7 Denmark 79.1 Mostly Free
• 8 Estonia 78.9 Mostly Free
• 9 Norway 78.3 Mostly Free
• 10 Netherlands 78.2 Mostly Free

2025 Index of Economic Freedom

• The 2025 Index, which considers the economic policies and conditions of 184 sovereign countries from 1 July 2023 to 30 June 2024, reveals a global economy.
• Only three countries (down from four last year) earned the status of “Free” by scoring 80 or above; 26 countries earned the status of “Mostly Free” by scoring between 70.0 and 79.9; and an additional 58 countries are considered at least “Moderately Free” by scoring between 60.0 and 69.9.