Executive Summary

SKOCH State of Development Index

• The SKOCH State of Development Index provides a comprehensive, multidimensional framework that redefines development measurement beyond traditional economic indicators. Integrating governance quality, fiscal health and digital infrastructure readiness, this composite Index aligns with Amartya Sen’s capability approach, emphasising enabling structures that foster individual and collective capabilities.
• The methodology combines three robustly constructed indices: the SKOCH State of Governance Index, SKOCH State of e-Government Infrastructure Index and SKOCH State of Financial Prudence Index. These components assess governance through qualitative evaluations, digital infrastructure through metrics on telecommunication penetration, education and online public service use and fiscal health via financial management indicators such as debt levels and revenue mobilisation. Each component is equally weighted, preventing disproportionate influence and ensuring a balanced evaluation.
• Maharashtra leads decisively due to strong governance execution, fiscal stability and advanced digital infrastructure. Gujarat and Odisha follow closely, exemplifying high performance through disciplined fiscal management and effective digital strategies. Uttarakhand, Haryana and Uttar Pradesh represent a robust second tier, showcasing how focused governance programmes and digital initiatives can significantly enhance development outcomes.
• Mid-spectrum performers like Tamil Nadu, Telangana, West Bengal and Andhra Pradesh illustrate balanced progress without excelling singularly, validating the effectiveness of the equal-weighted approach. States like Chhattisgarh, Madhya Pradesh and Jammu & Kashmir demonstrate resilience and strategic gains through targeted investments and digitisation, particularly amidst structural challenges.
• Conversely, states such as Karnataka, Himachal Pradesh, Rajasthan and Kerala reflect the need to complement strong social indicators with fiscal innovation and digital expansion. Lower-ranked states underscore the Index’s central insight: sustainable development requires institutional efficiency, digital capacity and financial prudence, not merely expenditure.

SKOCH State of Governance Index

• The SKOCH State of Governance methodology provides a rigorous, multi-layered evaluation framework to assess governance initiatives across Indian states. The Index analysis states in 39 parameters. The process starts with states submitting their best-performing projects, which undergo initial vetting by SKOCH research analysts focusing on relevance, documentation quality and alignment with governance goals. Shortlisted projects are further assessed by a jury of domain experts based on innovation, scalability, replicability and efficiency.
• The methodology uniquely differentiates between new and ongoing projects. New projects are evaluated primarily on their overall impact, whereas ongoing projects are assessed based on incremental improvements. This distinction ensures fairness across varying maturity stages of governance initiatives. A peer evaluation component also allows project owners to review similar initiatives, introducing practical insights and fostering inter-departmental learning. States are categorised into top-performing (STARS), commendable (PERFORMERS), improving (CATCHING UP) and others.
• In 2024, Maharashtra leads the rankings, excelling in volume, quality, innovative programme design and robust impact documentation, indicating strong internal accountability and openness to scrutiny. Gujarat, Andhra Pradesh, Uttar Pradesh, West Bengal and Odisha are notable performers, effectively leveraging the differentiated assessment criteria and showcasing strong institutional mechanisms and inter-agency collaboration.
• Conversely, Karnataka, Kerala, Delhi and several northeastern states ranked lower, often due to fewer submissions or inadequate alignment with evaluation criteria. The rankings underscore the importance of systematic documentation, outcome tracking and peer learning. To bridge performance gaps, states aiming to improve should enhance project documentation, inter-departmental coordination and stakeholder engagement.
• Conversely, states such as Karnataka, Himachal Pradesh, Rajasthan and Kerala reflect the need to complement strong social indicators with fiscal innovation and digital expansion. Lower-ranked states underscore the Index’s central insight: sustainable development requires institutional efficiency, digital capacity and financial prudence, not merely expenditure.

SKOCH State of e-Government Infrastructure Index

• The SKOCH State of Governance methodology provides a rigorous, multi-layered evaluation framework to assess governance initiatives across Indian states. The Index analysis states in 39 parameters. The process starts with states submitting their best-performing projects, which undergo initial vetting by SKOCH research analysts focusing on relevance, documentation quality and alignment with governance goals. Shortlisted projects are further assessed by a jury of domain experts based on innovation, scalability, replicability and efficiency.
• Employing a robust statistical approach, the Index standardises indicators through Z-score normalisation, ensuring comparability and balanced aggregation. The final Index emphasises service utilisation by assigning a 50% weight to OSI, reflecting practical governance effectiveness, while TII and HCI each receive a 25% weight.
• Haryana ranks first, driven primarily by exceptional digital service availability, offering 304 distinct e-services alongside strong internet infrastructure. Conversely, Uttarakhand’s high rank stems from intense digital service adoption and solid educational indicators despite fewer e-services, highlighting the importance of usage intensity. Mid-tier states present diverse results: Chhattisgarh’s impressive e-transaction rate compensates for infrastructural weaknesses, while Kerala’s robust connectivity contrasts with moderate digital service utilisation, indicating opportunities for deeper integration. Gujarat and Maharashtra underperform despite advanced infrastructure, revealing gaps in transactional uptake and service integration.
• Lower-ranking states like Bihar, Odisha, Assam and Rajasthan exhibit systemic weaknesses across all pillars, suffering from limited digital infrastructure, low educational indicators and minimal citizen engagement with digital platforms. These results reinforce the crucial insight that successful e-governance relies not solely on infrastructure but critically on strategic service design and proactive institutional efforts to boost citizen usage and engagement. This Index thus serves as an essential diagnostic tool for policymakers aiming to enhance inclusive and effective digital governance across India.

SKOCH State of Financial Prudence Index

• The SKOCH State of Financial Prudence Index evaluates the fiscal health of Indian states, informed by theories of fiscal federalism and public financial management. The Index measures states’ capacities across revenue generation, expenditure management and long-term fiscal sustainability. These components reflect both technical financial management competence and institutional resilience, emphasising the balance between autonomy and accountability.
• The methodology integrates seven critical indicators, grouped into three dimensions: Fiscal Sustainability & Prudence (40%), Revenue-Generating Capacity (30%) and Development & Investment Prioritisation (30%). Fiscal sustainability is assessed through debt-to-GSDP and Gross Fiscal deficit-to-GSDP ratios, recognising the imperative of prudent debt management and manageable deficits. Revenue-generating capacity evaluates states’ own tax and non-tax revenues, which are crucial for financial autonomy and resilience against economic shocks. The Development dimension emphasises spending on social infrastructure, capital projects and governance efficiency through per capita pendency rates, reflecting institutional effectiveness.
• The results highlight Odisha, Maharashtra and Gujarat as exemplary states due to robust fiscal prudence, strong revenue bases and significant investment in development. Odisha leads with exceptional non-tax revenues and the highest developmental expenditures. Maharashtra and Gujarat excel in maintaining low debt levels, efficient deficit management and solid own revenue streams. Middle-ranking states such as Tamil Nadu and Jharkhand perform consistently across indicators, illustrating balanced fiscal profiles. Conversely, Himachal Pradesh, Bihar, Arunachal Pradesh and Punjab exhibit fiscal distress, marked by excessive debt burdens, weak revenue mobilisation and reliance on central transfers, severely limiting their policy flexibility.

SKOCH State of Government Transformation Index

• The SKOCH State of Government Transformation Index presents a comprehensive analytical framework synthesising governance effectiveness and digital infrastructure readiness. Combining qualitative evaluations of governance initiatives with quantitative assessments of digital capacities, this composite Index offers a nuanced and holistic measure of state modernisation.
• The methodology integrates the State of Governance Index and the State of e-Government Infrastructure Index, equally weighted to balance programmatic innovation and systemic digital capacity. Governance quality is assessed through expert evaluations, peer reviews, field validations and public perception, focusing on the scalability and impact of initiatives. Digital infrastructure readiness is quantified across telecommunication infrastructure, human capital and online service delivery, standardised through Z-score normalisation to ensure robust comparability and sensitivity to India’s diverse federal landscape.
• Results highlight Maharashtra as the top performer, driven by strategic infrastructure investment and industry-friendly policies. Gujarat follows closely, recognised for effective governance and a vibrant entrepreneurial ecosystem. Andhra Pradesh and Uttar Pradesh demonstrate significant governance reforms and industrial growth strides. West Bengal and Uttarakhand showcase notable socio-economic transformations, reflecting positive structural adjustments.
• Conversely, states like Odisha, Tamil Nadu, Himachal Pradesh and Jammu & Kashmir face ongoing challenges in fully leveraging their governance and infrastructural strengths. Surprisingly, Madhya Pradesh and Karnataka lag despite their economic prominence, underscoring the need for intensified policy interventions. States including Bihar, Assam, Jharkhand and several Northeastern states continue encountering infrastructural constraints, while Delhi and Goa illustrate critical gaps between policy intent and execution despite inherent economic advantages.

SKOCH State of Government Efficiency Index

• The SKOCH State of Government Efficiency Index evaluates the effectiveness of Indian states in converting administrative and financial resources into tangible policy outcomes, emphasising technical and allocative efficiency. This nuanced approach transcends simplistic expenditure metrics, instead measuring governance productivity and impact within India’s diverse federal structure.
• The Index combines two equally weighted foundational components: the State of Governance Index, measuring qualitative aspects of public service delivery, innovation and replicability and the State of Financial Prudence Index, offering quantitative insights into fiscal discipline, debt management, revenue generation and capital spending. This dual approach ensures states are evaluated not just on governance effectiveness but also on fiscal responsibility and sustainability.
• Maharashtra emerged as the leader due to exceptional governance innovation and robust fiscal discipline, characterised by low debt, effective revenue mobilisation and prudent deficit management. Gujarat and Odisha also excel, benefiting from strong fiscal health, low debt-to-GSDP ratios and effective non-tax revenue strategies. Mid-ranking states such as Andhra Pradesh, Uttar Pradesh, Tamil Nadu, Telangana and West Bengal display varied strengths; fiscal stability often compensates for weaker governance performance.
• At the lower spectrum, Himachal Pradesh, Punjab, Goa, Arunachal Pradesh and Tripura lag due to combined governance and fiscal deficiencies. High debt levels and insufficient governance documentation hinder performance in these states. Meanwhile, despite good governance narratives, Kerala and Karnataka rank low due to weak fiscal indicators like inadequate capital outlays. The Index underscores that sustained state-level efficiency in India necessitates balancing administrative effectiveness with fiscal prudence.

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