"The Economic Freedom of the States in India" attempts to measure the degree to which the policies and institutions of Indian States are supportive of economic freedom. It is an assessment of the economic environment, which presents potential areas of reforms for the respective state governments. This publication presents the assessment of the states of India for 2006 and 2007. It is clear that those states which enjoy a higher economic freedom are also performing better on economic development and those states with low levels of economic freedom are yet to fully realise the benefits of a free society. The point to be noted is that all states have scope for improvement in providing an economically free environment for their citizens; however, the individual areas requiring attention differ from one state to the other.