According to the article published in the Economic Times dated 21 st May 2005, Rajiv Gandhi Foundation finds Gujarat governed by Shri Narendra Modi as the Best Governed State.

Rajiv Gandhi Foundation study says: “Economic Freedom for States of India” carried out by Rajiv Gandhi Institute for Contemporary Studies, the think-tank of the foundation, has come to this conclusion after analyzing “economic freedom” in different states of India.

Safety
Safety of life is an essential component (of economic freedom). Gujarat has a very small share of the total crimes being accounted for by violent crimes such as murder, rape, kidnapping, abduction, riots, arson, dowry deaths.
 
Business Friendly

Gujarat- according to the Foundation has a more business friendly environment. Least number of mandays are lost as a result of strikes and lockout as a ratio of total industrial workers in the state.

Liberal License Regime
Gujarat liberal license regime has also come for praise in the report.
 
Corruption Is Relatively Low
Corruption is measured in terms of cases pending investigation as a ratio of total cases registered under Prevention of Corruption and related acts.
 
Excellent Police Investigation Record
In Gujarat, a large share of the cases that are taken up by the police are ensured complete investigation.
 
Size Of Government

On the size of government, Gujarat comes in the first position.

Economic freedom is defined as “absence of government coercion or constraint in the production, distribution, or consumption of goods and services beyond the extent necessary for citizen to protect and maintain liberty by itself.”

The study is all praise for Gujarat as it grades state governments on its political decision making; the extent to which justice is served; levels of corruption; and the extent of regulation in the labor market.