Benchmarking Governance:
Indices for Viksit Bharat

Benchmarking Governance: Indices for Viksit Bharat

Robust measurement frameworks are essential for transforming governance into outcomes. SKOCH Indices empower competitive federalism by benchmarking states on governance, digital capacity and fiscal prudence—vital for achieving the ambitious goals of Viksit Bharat@2047

At the heart of effective governance lies the capacity to systematically and meaningfully measure institutional and policy performance. Without such metrics, governance remains abstract, with limited capacity to translate intent into observable and verifiable results. Measurement serves as the operational bridge between political will and administrative action, allowing policymakers to anchor normative ambitions in empirical realities. This alignment is vital for improving service delivery, ensuring policy coherence and enabling adaptive governance.

Philosophically, measurement in governance reflects a commitment to rationalism—embodying values of objectivity, accountability and transparency. The willingness to track and evaluate performance is not merely functional; it is normative, signaling a readiness to be held accountable for outcomes.

Far from being a mere managerial tool, measurement is a strategic instrument of governance. It identifies institutional bottlenecks, enables inter-jurisdictional comparisons and supports evidence-based policymaking. In doing so, it contributes to institutional resilience, strengthens administrative capacity and reinforces democratic legitimacy. A governance architecture embedded in systematic measurement is inherently more capable of achieving developmental goals while remaining accountable and responsive to its citizens.

In India’s federal setup, ranking subnational governments—particularly state governments—across various indices plays a pivotal role in fostering competitive federalism and driving improved governance outcomes. Empirical evidence demonstrates that when states are ranked on their performance in sectors such as Health, Education and Infrastructure, a competitive environment emerges where governments strive to enhance service delivery and attract investment. Initiatives like NITI Aayog’s School Education Quality Index and State Health Index exemplify how such rankings promote transparency and incentivise states to boost performance. This competitive dynamic often leads to marked improvements in governance and developmental outcomes.

Moreover, competitive federalism encourages states to adopt innovative practices and policies aimed at strengthening governance. Public ranking of states and districts holds governments accountable, instilling a culture of continual improvement and responsiveness to citizen needs.

In response to this imperative, the SKOCH Development Foundation has developed six analytically robust indices to rank states across critical dimensions of public policy. These indices go beyond rankings—they serve as tools for institutional benchmarking, inter-jurisdictional learning and democratic accountability. The six indices include:

Top 10 States/UTs Performing Well Across All Indices - 2024

Rank State/UT Highlights of Performance (Selected Ranks)
1 Maharashtra Ranked 1st in Governance, Efficiency, Transformation and Development
2 Gujarat Consistently top 3 in Finance, Efficiency, Transformation and Development
3 Odisha Ranked 1st in Finance, 3rd in Efficiency, top 6 across most indices
4 Uttarakhand Consistently top 10 in all indices
5 Andhra Pradesh Strong performance in Governance (3), Efficiency (5), Transformation (3)
6 Uttar Pradesh Top 4 in Governance, Efficiency, Transformation and Development
7 Tamil Nadu Strong across Finance (4), Efficiency (6), Development (7)
8 West Bengal Top 5 in Governance, Efficiency, Transformation and Development
9 Telangana Top 10 in Finance, Efficiency and Development
10 Chhattisgarh Top 15 in all indices; very balanced performer

SKOCH State of Governance Index

This flagship framework represents a pathbreaking approach to evaluating the performance of Indian states through a robust, multi-layered methodology grounded in both qualitative and quantitative analysis. Unlike conventional index models that rely heavily on macroeconomic or administrative data, the SKOCH approach is bottom-up—beginning with state-nominated projects that undergo rigorous expert review, field validation and peer as well as public assessments. This makes it an inclusive and evidence-driven model for recognising impactful governance.

SKOCH State of e-Government Infrastructure Index

This index assesses the strength, inclusivity and interoperability of digital systems that underpin responsive, transparent and real-time citizen engagement. As digital governance emerges as a pillar of 21st-century state capacity, a government’s ability to construct and sustain robust digital infrastructure becomes central to efficient service delivery and participatory governance.

Monitoring digital state capacity is essential for evaluating how well a government leverages technology to reduce transaction costs, deliver public goods and enhance administrative efficiency. High-performing digital states are typically more agile, citizen-centric and adaptive. This index captures not only technical infrastructure but also the strategic intent behind digital transformation—making it an essential tool for evaluating modern state effectiveness.

SKOCH State of Financial Prudence Index

Drawing from the principles of fiscal federalism and public financial management, this index evaluates a state’s capacity to generate revenues, manage expenditures and maintain fiscal sustainability—key components of overall state capacity. It reflects not only technical proficiency in fiscal management but also institutional resilience in balancing fiscal autonomy with accountability.

By examining fiscal health through the lens of revenue mobilisation, expenditure control and long-term sustainability, this index serves as a proxy for assessing broader governance capability and sound economic stewardship.

SKOCH State of Government Transformation Index

This composite index merges insights from the State of Governance and e-Government Infrastructure indices to create a holistic framework that transcends traditional siloed evaluations. It integrates principles of good governance—transparency, responsiveness and accountability—with the digital imperatives of interoperability, inclusivity and real-time service delivery.

It operationalises the emerging “government-as-a-platform” paradigm, which reimagines the state not just as a service provider but as a catalyst for systemic innovation, coordination and citizen engagement. By examining both governance quality and digital backbone together, this index offers a comprehensive view of state modernisation.

SKOCH State of Government Efficiency Index

This index shifts the analytical focus from mere expenditure tracking or policy intentions to governance productivity—how effectively states convert institutional inputs into meaningful outcomes. In a diverse federal polity like India, where states vary in institutional strength, fiscal resources and demographic pressures, this index becomes essential for benchmarking administrative efficiency.

It aligns with public sector productivity literature that emphasises optimising resource use over merely increasing resource inputs. The index also reflects the theory of capability-enhancing governance—measuring how institutional design and administrative frameworks empower governments to fulfil developmental mandates.

SKOCH State of Development Index

Offering an integrative perspective, this index combines governance, financial prudence and digital infrastructure to assess development. Unlike conventional metrics that focus narrowly on GDP or income, this index adopts a capability-based approach, as proposed by Amartya Sen, emphasising the real freedoms and opportunities available to individuals.

By focusing on the enabling factors of human development—governance quality, fiscal strength and digital inclusion—it captures dimensions of state capacity often overlooked in traditional assessments. The index thus provides both a normative and analytical lens for understanding inclusive, sustainable development.

Why These Indices Matter

In a country as diverse and decentralised as India, standardised metrics are vital for meaningful inter-state comparisons. Absent uniform benchmarks, evaluations risk devolving into anecdotal or politicised narratives. These indices provide a methodologically rigorous and replicable approach, rooted in the discipline of comparative public administration.

Beyond mere measurement, these indices activate the principles of competitive federalism—where states compete for capital, innovation and human capital by improving their institutional performance. Transparent performance signals not only guide citizens and investors but also incentivise reform and improvement by state governments. This decentralised, evidence-based competition promotes a “race to the top,” driven not by central mandates but by data-informed governance.

Additionally, these indices facilitate policy learning and diffusion by identifying and publicising best practices. Theories of policy diffusion assert that when innovations are benchmarked and visible, their likelihood of adoption across jurisdictions increases. As repositories of successful governance models, these indices encourage mutual learning among states.

As India aspires to realise the ambitious vision of Viksit Bharat@2047, it is the aggregation of subnational achievements—driven by competition, accountability and innovation—that will prove pivotal.

INCLUSION is the first and only journal in the country that champions the cause of social, financial and digital inclusion. With a discernable and ever-increasing readership, the quarterly relentlessly pursues the three inclusions through its rich content comprising analysis, reportage, features, interviews, grassroots case studies and columns by domain experts. The magazine caters to top decision makers, academia, civil society, policy makers and industry captains across banking, financial services and insurance.


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