India is ranked at ninth position in crony-capitalism index that was released by the Economist in the first week of May 2016. India has a crony sector wealth accounting for 3.4 percent of the gross domestic product (GDP).
Highlights of the Index
• As per the latest crony-capitalism index the non-crony sector wealth in India amounts to 8.3 per cent of the GDP
• India stood at the same ninth place in the previous 2014 rankings.
• Russia topped the list and followed by Malaysia, the Philippines and Singapore.
• Russia fares worst in the index, wealth from the country's crony sectors amounts to 18 per cent of its GDP.
• Crony wealth has fallen by 116 billion US dollars since 2014 among the 22 economies in the index.
• The worth of billionaires in crony industries Worldwide is soared by 385 per cent between 2004 and 2014 to 2 US dollars trillion.
About crony-capitalism index
• The Economist newspaper designed this new measurement of crony capitalism.
• It was based on the work by Ruchir Sharma of Morgan Stanley Investment Management, Aditi Gandhi and Michael Walton of Centre for Policy Research of New Delhi, and others in 2014.
• The index aims to indicate whether the livelihood of the people from certain country or city with capitalist economy is easily affected by crony capitalism.
• Due to its limitations the index was not recognized internationally.
• It also aims to measure the increase trend in the number of economic rent-seekers.
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