India moves up on prosperity index, closes gap with China

Despite a fall in GDP caused by demonetisation and the indirect tax reform, general services tax, India has moved four notches up on the world prosperity index, says a study by Legatum Institute. India has moved to 100 this year from 104 last year narrowing the gap with its neigbour China (90). The study by the London-based think-tank found Asia-Pacific as the fastest-moving region. Norway topped the list. While measuring the prosperity of a country, the study considers factors like economic quality, business environment, governance, personal freedom, social capital, safety and security, education, health and natural environment. India’s improvement in rankings is linked to gains in business environment, economic quality and governance. In India’s case, more people are satisfied with their standard of living and household incomes. Marginalised people have been brought into the banking system and more people are challenging regulation in the legal system.