2025 Index of Economic Freedom: Top 10 ‘economically free’ countries worldwide, and where does India rank?

Singapore, at #1, continues to be the freest economy in the world, demonstrating a consistently high level of economic resilience and prosperity, with Switzerland at #2 and Ireland at #3, following next.

Taiwan has retained its #4 ranking, which is the highest it has ever attained in the Index of Economic Freedom.

Meanwhile, the world’s largest economy, the United States, at #26 and score plummeting to 70.2, recorded the lowest levels in the history of the Index.

On the flip side, about 50% of the Index, i.e., 89 economies, are regarded as “mostly unfree”, with about 29 countries, including Pakistan (#150) and China (#151), classified as “economically repressed“.

Top 10 countries ranked by economic freedom in 2025

Source: heritage.org – 2025 Index of Economic Freedom

India’s global standing explained:

India ranks at #128 (and 26th regionally) with a score of 53.0 in 2025. It still falls under the “mostly unfree” economic freedom.

India is struggling with fiscal health, scoring a very low 6.2, along with investment freedom and financial freedom, both scoring 40 and government integrity at 37.6.

However, on the positive side, it showcases relative strength in areas like government spending (74.2), business freedom (72.3), and tax burden (71.3), and mid-range scores in areas like property rights (51.1), judicial effectiveness (53.2), and labour freedom (59.0).

2025 Index of Economic Freedom: Regional Rankings

Economic Freedom: Regional Rankings (Source: heritage.org – 2025 Index of Economic Freedom)