NEW DELHI: THE Economic Freedom of the States of India report 2013 has shown that the Narendra Modi helmed Gujarat remains at number one. This is an index that measures governance, growth, citizens' rights, and labour and business regulation among the country's 20 largest states. Equally, Bihar gets a huge vote of affirmation for the work done by Nitish Kumar since he took over as chief minister (CM) in 2005.



The report states that 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) while Tamil Nadu remains in second position with 0.54.



The annual report estimates economic freedom based on data for 2013 using a methodology adapted from the Fraser Institute's Economic Freedom of the World (EFW) annual reports. The report is published through a joint effort of Friedrich-Naumann-Stiftung für die Freiheit, US-based think tank Cato Institute and the Academic Foundation, New Delhi.



The three states recording the fastest improvement in economic freedom have been among the fastest-growing states.



Growth has averaged 12 per cent in Gujarat, 10.6 per cent in Chhattisgarh and 10.4 per cent in Pradesh between 2005 and 2011.



"Gujarat is not only the freest state, but it has also registered the fastest rate of improvement in the index (from 0.46 in 2005 to 0.65 in 2013)," the report said.



This report comes at a time when the Gujarat development model continues to be questioned.



The report, co-authored by well-known economists Swaminathan S. Anklesaria Aiyar, Laveesh Bhandari and Bibek Debroy, further says, "States in India which are economically more free are also doing better in terms of a higher per capita growth for its citizens; unemployment levels are lower in these states, sanitary conditions are better and the states also attract more investment."



























