India Economic Freedom Index

The Public Affairs Centre is a non-profit NGO think tank of India. For the second year, they have now released their ranking of States of India in the Public Affairs Index on Governance of 2017. One of eleven themes they compared is economic freedom, which deals with the efforts made by each state to enhance economic growth. They took the number of filed industrial entrepreneurs memoranda, the World Bank ease of doing business index, and the value of MSMEs assets into account. As a result, the following eight states ranked on top:

  1. Gujarat
  2. Telangana
  3. Maharashtra
  4. Andhra Pradesh
  5. Rajasthan
  6. Madhya Pradesh
  7. Uttar Pradesh
  8. Tamil Nadu

Info and image source: Public Affairs Centre, Bangalore.

Six of these eight states are also members of the GDP based G8x8. Only Karnataka and Kerala, ranking 4th and 8th in GDP, are listed much lower in the Economic Freedom Index: 10th and 16th.

USA Economic Climate Ranking

CNBC have been publishing their economic climate ranking of all 50 states of the USA for eleven years. Now they issued their new ranking for 2017. Workforce and infrastructure are at the top of the list among 10 major categories and 66 metrics used in crowning the Top State for Business 2017. Key messages this year: (1) The skills gap across the labor market is big and getting bigger. (2) As President Trump talks up a $1 trillion infrastructure plan, states are talking more about the strength of their roads, rails, ports and utilities.

Check out the 2017 data table, sortable for all criteria, a chart and maps at CNBC Top States for Business.

Their overall ranking lists the following eight on top:

  • Washington
  • Georgia
  • Minnesota
  • Texas
  • North Carolina
  • Colorado
  • Virginia
  • Utah

Interesting enough: only one of their top eight business climate states is also a top eight GDP state, and thus listed among our G8x8. Try to find out which one it is!

Info and image source: CNBC

G8x8 from 2008 to 2017

One major change in composition of the G8x8 from 2008 to 2017 is the new appearance of India↑ to country rank 7, and the fall of Russia↓ from rank 8 off of the chess board. Japan↓ and China↑ switched positions 2 and 3, and the UK↑ surpassed France↓ for rank 5 with France dropping to rank 6. Italy↓ dropped from rank 7 to 8. Only the USA maintained their position at rank 1, and Germany at rank 4.

There are also some rank changes within countries. Here is a summary of developments for each country:

  1. USA: Texas↑ and New York↓ switched postions 2 and 3; Ohio↑ and New Jersey↓ switched positions 7 and 8.
  2. China: Shandong↓ and Jiangsu↑ switched positions 2 and 3; Hebei↓ dropped from rank 6 to 7; Sichuan↑ newly appeared in the top 8 at rank 6; Hunan↑ appeared at rank 8; Shanghai↓ and Liaoning↓ dropped out of the top eight.
  3. Japan: Osaka↑ rose from rank 4 to 2; Kanagawa↓ dropped from 2 to 4.
  4. Germany: Berlin↑ and Sachsen↓ switched ranks 7 and 8.
  5. UK: No change within the country.
  6. France: In 2016, names and territories were changed, which make the 2008 and 2017 chess boards incompatible.
  7. India: New on the chess board.
  8. Italy: No change within the country.

In 2008, we also compared GDP growth rates between territories. Number one growth territory was Liaoning province of China with a growth rate of 13.1 percent. The fact that this most promising province of 2008 later fell off the chess board convinced us to discontinue the publication of short-lived growth indicators.