Legatum Prosperity Index: India Comes Closer to China

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Legatum Prosperity Index is annual ranking developed by the London-based Legatum Institute. According to the 2017 ranking, gap between prosperity of China and India narrowed by four ranks since 2016.

Top Contributors to Global Prosperity Gains Since 2007

Key Aspects of the India՚s Growth in Legatum Prosperity Index 2017

  • Upward trend in India՚s prosperity becomes more significant with India registering lower GDP growth following demonetization and implementation of the GST reform in 2017.
  • India closed in on China through gains in business environment, economic quality, and governance, the report said.
  • Legatum Institute recognized improving governance by legislation increasing the ability to challenge regulation in the legal system.
  • Report attributed the gains in business environment and economic quality to improvement in intellectual property rights, education, and massive rise in bank account holders.
  • China lost economically with people facing greater barriers to trade and less encouragement of competition; and educationally through a falling primary school completion rate.
  • World prosperity improved in 2017, but Asia-Pacific, which includes China and India grew the fastest. Region registered greatest improvement in business environment and worst performance towards natural environment.

Details of the Legatum Prosperity Index

  • The Prosperity Index is determined by nine sub-indices:
    • Business environment
    • Governance
    • Education
    • Health
    • Safety and security
    • Personal freedom
    • Social capital
    • Natural environment
  • The details are reviewed by a panel of academics from various disciplines and reputed schools like London School of Economics, Tufts University, Brookings Institution and University of California, San Diego.
  • 2017 Legatum Prosperity Index was based on 104 different variables across 149 nations
  • The report signifies that more people are satisfied with their standard of living and household incomes.

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