Maarg Manthan · Topic 27.4

Good Governance Index

Indian Polity › Governance · Topic 27.4

The Good Governance Index is the DARPG tool that ranks states and Union Territories on governance across ten sectors and 58 indicators in four categories, released on Good Governance Day, 25 December.

5 min read · UPSC Prelims · Polity · Governance

At a Glance

What it is Index measuring the state of governance across states and Union Territories
Prepared by DARPG, Ministry of Personnel, Public Grievances and Pensions
Released on Good Governance Day, 25 December
2021 edition 10 sectors, 58 indicators
Exam link UPSC Prelims, Polity: Governance

Where Does It Fit?

This is the fourth topic of the category on Governance. The Good Governance Index is a tool developed by the Department of Administrative Reforms and Public Grievances to assess the status of governance and the impact of interventions taken by the states and Union Territories, and to compare their performance.

Purpose and Release

The index is meant to compare states and Union Territories on a common framework of governance indicators so that they can learn from each other and identify areas for improvement. It is prepared by the DARPG, and released on 25 December, observed as Good Governance Day to mark the birth anniversary of Atal Bihari Vajpayee. The exercise was first done in 2019, and the second edition was released on Good Governance Day, 25 December 2021. It is meant to be a biannual exercise. The index treats governance as a composite of sector performance and not of one measure alone.

Structure of the 2021 Index

Feature	Detail
Sectors	Ten
Indicators	58
Categories of states and UTs	Four: Other States Group A; Other States Group B; North-East and Hill States; Union Territories
Comparison	Twenty states improved their composite scores compared with the 2019 index

The ten sectors are Agriculture and Allied Sectors; Commerce and Industries; Human Resource Development; Public Health; Public Infrastructure and Utilities; Economic Governance; Social Welfare and Development; Judiciary and Public Security; Environment; and Citizen-Centric Governance. Grouping states into categories makes comparison fairer, because states of similar size and context are ranked together.

Top Performers in 2021

Category	Top state or UT	Next
Other States, Group A	Gujarat	Maharashtra and Goa
Other States, Group B	Madhya Pradesh	Rajasthan and Chhattisgarh
North-East and Hill States	Himachal Pradesh	Mizoram and Uttarakhand
Union Territories	Delhi	Not applicable

Delhi recorded a 14% increase over its 2019 indicators among the Union Territories. Rankings change with each edition, so aspirants should note the method and the sectors, which are stable, more than the ranks.

Index Compared With Other Rankings

Index	Prepared by	Focus
Good Governance Index	DARPG	Composite governance across ten sectors
School Education Quality Index	NITI Aayog	School education outcomes and systems
State Health Index	NITI Aayog	Health outcomes and systems
Composite Water Management Index	NITI Aayog	Water management
Sustainable Development Goals Index	NITI Aayog	Progress on the Sustainable Development Goals
India Innovation Index	NITI Aayog	Innovation capacity
Export Competitiveness Index	NITI Aayog	Export performance of states

NITI Aayog promotes competitive federalism through transparent rankings in sectors, with a hand-holding approach, and releases monthly delta rankings of the Aspirational Districts. The Good Governance Index differs from these in that it is a cross-sector composite prepared by the personnel and administrative reforms department, while the NITI Aayog indices each look at a single sector.

Good Governance Day and the Idea of Good Governance

Good Governance Day is observed on 25 December, the birth anniversary of Atal Bihari Vajpayee, to foster awareness of accountability in government. The international literature on good governance, such as that of the United Nations, lists eight characteristics: participation, rule of law, transparency, responsiveness, consensus orientation, equity and inclusiveness, effectiveness and efficiency, and accountability. The sectors of the Good Governance Index can be read as an attempt to measure many of these through outcomes in areas such as health, environment, public security and citizen-centric services, rather than through opinion alone.

The index sits alongside other tools for comparing and improving performance: the Citizens’ Charter and Sevottam framework for service delivery, the Right to Information Act for transparency, NITI Aayog’s sectoral indices such as the School Education Quality Index, State Health Index and SDG India Index which promote competitive federalism, and e-governance platforms that generate data. The index is also seen as an input for evidence-based policy, since it highlights sectors where a state lags. Critics point out that composite indices depend on the quality and timeliness of data, and that indicators can encourage states to improve what is measured rather than what matters.

Why Is This Topic Important?

Current-affairs link Recent editions are cited
Structure Ten sectors asked
Federalism Competitive federalism angle

What Came Next?

The next topic covers the Second Administrative Reforms Commission.

Key People and Terms

Good Governance Day 25 December
Composite score Combined sector score
Indicator Measured parameter
DARPG Preparer of the index
Competitive federalism States compared and ranked

Exam Corner

Points to Remember

Prepared by DARPG.
Released on 25 December.
Ten sectors; 58 indicators (2021).
Four categories of states and UTs.
2021 toppers: Gujarat, Madhya Pradesh, Himachal Pradesh, Delhi.

Do Not Confuse With

Good Governance Index and NITI indices DARPG composite versus NITI sectoral indices
2019 and 2021 editions First and second
Group A and Group B states Different categories

Memory Hook

Ten sectors, fifty-eight indicators, four categories, released on Good Governance Day.

Mains Angle

Questions on this topic usually ask about measuring governance. Use these points to add depth.

Evidence-based policy Data to compare
Competitive federalism Ranking states
Limits of indices Data quality
Comparable groups Four categories

A Question You May Face

An original practice question, not a past paper question.

“How useful are governance indices such as the Good Governance Index in improving administration?”

How to Answer

Introduction Index and purpose.
Structure Sectors and categories.
Limits Data and incentives.
Conclusion Way forward.

GS Relevance

Prelims: Indian Polity, governance. GS Paper 2: Governance indices and federalism.

Frequently Asked Questions

What is the Good Governance Index?

It is a tool prepared by the Department of Administrative Reforms and Public Grievances to assess the status of governance and the impact of interventions in the states and Union Territories on a common set of indicators.

Who prepares the Good Governance Index?

The Department of Administrative Reforms and Public Grievances in the Ministry of Personnel, Public Grievances and Pensions prepares the index, and the Government of India releases it on Good Governance Day, which is observed on 25 December every year.

How many sectors and indicators are in the 2021 index?

The 2021 index has ten sectors and 58 indicators, and it ranks states and Union Territories in four categories: Other States Group A, Other States Group B, North-East and Hill States, and Union Territories, so that comparisons are made among similar units.

Which were the top performers in the 2021 index?

Gujarat topped Group A, Madhya Pradesh topped Group B, Himachal Pradesh topped the North-East and Hill States, and Delhi topped the Union Territories category in the Good Governance Index 2021, which was released on 25 December 2021.

Why are states grouped into categories in the index?

States of similar size and context are ranked together so that comparison is fairer, which also lets small, hill and North-Eastern states and Union Territories be assessed against peers with similar conditions and not against much larger states in the country.

PYQ Practice — Statement Analysis

1 The Good Governance Index is prepared by NITI Aayog.

False

By DARPG.

2 The 2021 index covers ten sectors.

True

With 58 indicators.

3 Delhi topped the Union Territories in 2021.