What is Good Governance Day? Know the top-performing states in the Good Governance Index

Good Governance Day is observed annually on December 25, the birth anniversary of former Prime Minister Atal Bihari Vajpayee, whose leadership emphasised accountability, transparency, and inclusive growth.The day reminds us that governance is not just about administration but about making life better for every citizen.

What is the Good Governance Index?

The Good Governance Index is a composite assessment of governance performance across states and union territories, translating policy intent into measurable, citizen-centric outcomes. Week-long celebrations spread the concept of good governance from districts to villages. India has recorded progress across sectors, driven by the implementation of multiple national-level schemes, as per the data.

The Department of Administrative Reforms and Public Grievances (DARPG) introduced the Good Governance Index on December 25, 2019, to evaluate governance performance across states and union territories and encourage improvements. Good governance is crucial for the welfare of citizens, inclusive development and the country's economic transformation. The Index identifies 10 key sectors. Governance performance across these sectors is measured in terms of 58 indicators designed keeping citizen-centricity in mind. According to the United Nations, Good governance is participatory, consensus-orientated, accountable, transparent, responsive, effective and efficient, equitable and inclusive, and follows the rule of law. 

What are the core characteristics of good governance? 

According to the World Bank and the United Nations (UN), good governance is the process by which public institutions conduct public affairs and manage public resources in a way that guarantees the realisation of human rights and promotes sustainable development.

While the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) is most famous for codifying the "8 Characteristics", the World Bank shares this framework as the bedrock for its "Worldwide Governance Indicators" (WGI).

8 Core Characteristics of Good Governance: 

• Participation: All citizens, including men, women, and marginalised groups, should have a voice in decision-making, either directly or through legitimate intermediate institutions.

• Rule of Law: Legal frameworks must be fair and enforced impartially. This includes the full protection of human rights and an independent judiciary.

• Transparency: Information should be freely available and directly accessible to those who will be affected by decisions and their enforcement.

• Responsiveness: Institutions and processes must attempt to serve all stakeholders within a reasonable timeframe.

• Consensus-Orientated: Good governance requires mediation of different interests to reach a broad consensus on what is in the best interest of the whole community.

• Equity and Inclusiveness: A society’s well-being depends on ensuring that all its members feel they have a stake in it and do not feel excluded from the mainstream.

• Efficiency and Effectiveness: Processes and institutions should produce results that meet the needs of society while making the best use of resources at their disposal.

• Accountability: A requirement where governmental institutions, private sector, and civil society organisations are answerable to  public and to their institutional stakeholders.

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What is the significance?

According to the World Bank and United Nations, development, poverty reduction, transparency, and economic growth. Following the significance of good governance: 

1. Drives Sustainable Development: Good governance serves as the primary engine for achievingSustainable Development Goals (SDGs) by building resilient institutions that can support long-term environmental and social progress.

2. Ensures Effective Poverty Reduction: Both institutions emphasise that accountable governance is essential to ensure that social welfare programmes and resources reach the poorest populations without leakage.

3. Promotes Economic Growth and Investment: By promoting the Rule of Law and protecting property rights, green technologies attract Foreign Direct Investment (FDI) and boost the market economy. 

4. Enhances Transparency and Anti-Corruption: By implementing transparent processes, it reduces systemic corruption, ensuring that public funds are utilised efficiently for infrastructure and public services rather than private gain.

5. Protecting Human Rights and Justice: A fair and independent judiciary ensures that legal frameworks protect individual freedoms and provide equal access to justice for all citizens.

6. Fosters Social Inclusion and Stability: By encouraging citizen participation, good governance mitigates social unrest and promotes peace by addressing the needs of marginalised and vulnerable groups.

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India's key elements to measure good governance:

In India, "Good Governance" is often defined through the Good Governance Index (GGI), a framework used by the Government of India to assess the performance of states and union territories. While it aligns with global standards, it adds specific Indian developmental priorities.

10 Points of Good Governance (GGI Framework)

1. Agriculture and Allied Sectors: Focuses on food grain production, horticulture, milk, and meat production, as well as the enrolment of mandis (markets) in digital platforms like e-NAM.

2. Commerce and Industries: Measures the "Ease of Doing Business", growth of MSMEs, and the creation of a vibrant startup ecosystem.

3. Human Resouces and Development: Prioritise human resource development, the quality of education, gender parity in schools, and skill training for better employability.

4. Public Health: Tracks the operationalisation of Health and Wellness Centres, availability of doctors at Primary Health Centres (PHCs) and reduction in infant/maternal mortality rates.

5. Public Infrastructure: Evaluates access to potable water, rural road connectivity, clean cooking fuel (LPG), and 24/7 power supply.

6. Economic Governance: Focuses on fiscal discipline, including managing fiscal deficits and increasing the state’s own tax revenue. 

7. Social Welfare and Development: Measures the "Saturation Approach" (reaching the last person) for schemes like Housing for All, health insurance, and empowerment of marginalised communities (SC/ST/OBC).

8. Judiciary and Public Safety: Assesses the conviction rate, disposal of pending court cases, and the presence of women in the police force.

9. Environment: Tracks changes in forest cover, waste management (recycling vs. generation), and the shift toward renewable energy.

10. Citizen-Centric Governance: The ultimate goal focuses on the Right to Service Act, grievance redressal (via platforms like CPGRAMS), and providing government services online.

Source: PIB

Good Governance Index (GGI) 2020-21: Top Performers

According to Department of Administrative Reforms and Public Grievances (DARPG), Good governance is given based on the 10 key sectors and divided into the 4 categories of states and union territories, which are based on the geography, population and developments. As per the last 2020-2021 Index, these are:

The Good Governance Index 2021, launched by the Ministry of Personnel, Public Grievances and Pensions, evaluates states based on 10 sectors (such as Agriculture, Public Health, and Environment) and 58 indicators.

• Highest Performer state: Goa registered the highest incremental growth among Group A states (24.7%).

• Sector Dominant Performer state: Uttar Pradesh, while ranking lower in the composite score for Group B, actually secured 1st place in the Commerce and Industry sector.

• Consistent Performer state: Gujarat has consistently maintained its lead by performing strongly in 5 out of the 10 monitored sectors.

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What are the steps taken by the Indian government to promote good governance in India?

To promote good governance in India, the government has moved towards a philosophy of "Minimum Government, Maximum Governance", emphasising transparency, efficiency, and citizen-centric service delivery.

• Digital Transformation (Digital India): The government has integrated technology into administration to reduce corruption and delays. Key tools include DigiLocker (for paperless documents), UMANG (a unified app for all government services), and e-Office to ensure accountability in bureaucratic files.

• Direct Benefit Transfer (DBT) & JAM Trinity: By linking Jan Dhan bank accounts, Aadhaar cards, and mobile numbers (JAM), the government transfers welfare subsidies (like gas or farmer support) directly to citizens' bank accounts. This has significantly reduced "leakages" and ensured that benefits reach the intended recipients.

• Mission Karmayogi: Launched to reform the civil services, this initiative moves the bureaucracy from a "rule-based" to a "role-based" approach. It focuses on capacity building, ensuring that government officials have the specialised skills and service-orientated mindset required for modern governance.

• Good Governance Index (GGI): To promote competitive federalism, the government uses the GGI to rank states and union territories across 10 sectors (like agriculture, health, and environment). This encourages states to benchmark their performance and adopt best practices from each other.

• Public Grievance Redressal (CPGRAMS): The Centralised Public Grievance Redress and Monitoring System (CPGRAMS) allows citizens to lodge complaints against government departments online. The system is designed to track these complaints in real time, ensuring a more responsive and accountable administration.

• Legal & Regulatory Reforms: The government has repealed over 1,500 obsolete colonial-era laws to simplify the legal framework. Furthermore, the implementation of the Right to Information (RTI) Act remains a cornerstone for transparency, allowing citizens to demand data and accountability from public authorities

What are the challenges to good governance in India?

To promote good governance in India, the government has addressed challenges by focusing on a consolidated approach to reform rather than isolated measures. Here are the primary challenges to good governance in India:

• Systemic Corruption and Red Tapism: Despite digital advancements, bureaucratic hurdles and "red tape" often delay project implementation and service delivery, leading to a lack of transparency in several administrative layers.

• Criminalisation of Politics: A significant percentage of lawmakers face pending criminal charges, which creates a conflict of interest and undermines the "Rule of Law" and the overall integrity of the legislative process.

• Judicial Backlog and Delays: With millions of cases pending in various courts, the slow pace of justice remains a critical barrier, as delayed legal outcomes affect both individual rights and the ease of doing business.

• Persistent Social Inequality: Structural disparities based on caste, gender, and regional development mean that marginalised groups often face barriers in accessing government schemes and participating in decision-making processes.

• Digital Divide and Literacy: While governance is moving online, a significant portion of the population lacks the digital literacy or infrastructure required to navigate e-governance platforms, leading to "digital exclusion".

• Weak Local Governance: Although decentralised through the 73rd and 74th Amendments, many local bodies (Panchayats and Municipalities) still struggle with inadequate funding and limited administrative autonomy.

Good Governance Day honours the legacy of Atal Bihari Vajpayee by reinforcing the commitment to "Minimum Government, Maximum Governance". The Good Governance Index (GGI) serves as a critical diagnostic tool to drive competitive federalism, helping states like Gujarat and Himachal Pradesh lead in service delivery. By integrating digital reforms and addressing systemic challenges, India aims to ensure a transparent, inclusive, and accountable administration for all citizens.

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