Background

• Nationalism dominates global trade and politics post-WTO, shifting focus to non-tariff barriers. However, this narrative overlooks the realities of the Global South, diminishing its moral and spiritual aspects.
• Businesses face uniform expectations for ESG, CSR and Corporate Digital Responsibility (CDR) compliance across trade, alongside perceived moral grandstanding in Human Rights and Democracy indices by the Global North.
• The Global South’s issues, context and necessary solutions are often disregarded, mainly due to a lack of institutional capacity in understanding the complexities of compliance and associated indices.
• New and Emerging Strategic Technologies (NEST) will lead to new and emerging strategic challenges in the global context.
• There is a pronounced need to research and propose frameworks either within such Global North standards or as a counter standard that takes cognisance of what the South needs.

About SKOCH India 2047-Centre of Excellence

• SKOCH India 2047—Centre of Excellence is set up by SKOCH Development Foundation to fill this gap.
• It is Researching, setting up Proof-of-Concept and is documenting Best Practices to create Global Benchmarks and Indices that counterbalance, redefine and build capacity for India’s leadership from the Global South viewpoint.
• The Centre of Excellence is developing frameworks, measurement criteria and local and global indices that can be noted, learned from and used for subjects including sovereign ratings.

About SKOCH Development Foundation
SKOCH Development Foundation is Section 8, Not-for-Profit Company, registered under the Companies
Act, 1956 and registered as a recognised charity under 80G and 12AA of the Income Tax Act, 1961.
For more information, please visit www.skoch.org

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Executive Summary

India’s governance landscape has experienced substantial transformation over the past decade, primarily driven by Digital India initiatives, e-governance reformsand institutional modernisation. However, the effectiveness and long-term sustainability of these reforms differ across states, necessitating a systematic framework to assess governance transformation comprehensively.

The State of Governance Transformation Index offers a comprehensive framework for evaluating governance performance across Indian states. This index assesses two primary dimensions—Technical Governance Transformation (TGT) and Quality of Governance Transformation (QGT)—to systematically measure the extent of digital adoption, administrative efficiency and policy implementation. The scoring methodology employs Z-score normalisation, ensuring comparability of governance performance across states for the reference years 2015, 2019 and 2024.

The findings reveal a two-phase trajectory in governance transformation. The period between 2015 and 2019 witnessed substantial improvements, largely attributed to initiatives such as Digital India, the expansion of e-governance and key policy reforms. However, this progress plateaued between 2019 and 2024, highlighting the pressing need for enhanced governance mechanisms, decentralised administrative structures and greater efficiency in public service delivery.

Among the states Andhra Pradesh, Gujarat and Telangana consistently emerged as top performers, driven by significant investments in digital infrastructure and the adoption of streamlined governance models. Maharashtra, West Bengal and Rajasthan demonstrated early gains but stagnated post-2019, while Bihar, Jharkhand and Chhattisgarh remained below the national average, reflecting slower adoption of
governance transformation and indicating the necessity for targeted reforms. In the category of smaller states, Meghalaya, Tripura and Sikkim led in governance transformation, whereas Nagaland and Manipur lagged, exhibiting below-average performance.

Despite the initial progress, the stagnation in governance transformation post-2019 underscores persistent challenges in service delivery at the district and municipal levels, fiscal constraints and the limited expansion of governance modernisation beyond urban centers. The study reinforces the need for data-driven policymaking, structural governance reforms and continuous modernisation efforts.

As India moves towards the goal of Viksit Bharat by 2047, governance transformation must prioritise scalable digital solutions, decentralised decision-making frameworks and institutional resilience. Strengthening technological governance, service delivery efficiency and accountability mechanisms will ensure more inclusive, responsive and effective governance across all states.

Introduction

Governance transformation refers to the systematic enhancement of public administration, institutional
efficiency and policy execution to improve service delivery. It involves digital infrastructure, regulatory
reforms and administrative restructuring to ensure transparency, accountability and citizen
engagement. In India, this transformation is shaped by technological advancements, structural
policy shifts and fiscal sustainability measures. The SKOCH State of Governance Transformation Index
assesses the extent to which states have adapted to these changes, evaluating both their technological
integration and governance effectiveness.

The SKOCH State of Governance Transformation Index evaluates governance through two key dimensions:

1. Technical Governance Transformation (TGT)
   • Measures investment in digital governance infrastructure, human capital development and service integration, capturing reach, efficiency and accessibility.
2. Quality of Governance Transformation (QGT)
   • Assesses the outcomes of governance interventions, including policy innovation, administrative restructuring and citizen-centric reforms.

Context and the Need for Governance Transformation

Governance transformation in India is occurring amid economic restructuring, technological disruptions and increasing public service expectations. The Supreme Court’s scrutiny of fiscal sustainability has reinforced the need for governance models that balance developmental priorities with administrative efficiency. Additionally, global governance indices such as the E-Government Development Index (EGDI)
often fail to reflect India-specific advancements, leading to an underestimation of its digital governance achievements. The SKOCH State of Governance Transformation Index provides a context-sensitive, state-wise assessment that accounts for regional policy variations and governance challenges. Between 2015 and 2019, India saw rapid governance transformation, driven by Digital India, Aadhaar-based service integration and automation in public service delivery. However, post-2019, progress has slowed, underscoring the need for renewed policy initiatives, AI-driven governance reforms and decentralised administrative models. This paper explores governance transformation trends, assessment frameworks, key findings and policy recommendations to sustain and enhance governance efficiency across Indian states.

Assessment Framework

Governance transformation requires a structured evaluation of both investment in digital infrastructure and the effectiveness of governance reforms. The SKOCH State of Governance Transformation Index adopts a dual-framework approach to measure these dimensions, ensuring a comprehensive, state-wise assessment of governance efficiency.

Technical Governance Transformation (TGT)

The extent of transformation assesses a state’s digital governance infrastructure and human capital readiness through three key indicators:

• Telecommunication and Internet Index(TII) (25%) – Measures tele-density per 100 people and internet penetration.
• Human Capital Index (HCI) (25%) – Evaluates literacy rates and enrolment in education.
• Online Services Index (OSI) (50%) – Captures e-transactions per 100 users and the availability of government services online.

Quality of Governance Transformation = State of Governance Score norm By analysing these indicators, the index quantifies the readiness of states to implement digital governance and their progress in integrating technology into public service delivery.

Quality of Governance Transformation

Beyond infrastructure investment, governance transformation depends on the effectiveness, innovation and impact of policy interventions. The SKOCH State of Governance Score evaluates state-level projects based on the following methodology:

1. Project Level Research Methodology

• Each project receives a comprehensive score after undergoing several phases of evaluation.
• Based on the aggregate score, well-performing projects in each sector are identified.
• These projects form a part of the SKOCH Online Knowledge Repository on Governance.

2. State-Level Research Methodology

• Well-performing projects within a state are identified by the state governments and submitted for evaluation.
• Projects in each state are categorised and analysed sectorally.
• Sectoral scores and rankings in each state are determined.
• An aggregate of well-performing projects by sector within a state determines the performance of each sector within the state.
• An aggregate of sectoral performance determines the comprehensive overall performance of the state.

National Level Research Methodology

• Based on the comprehensive state scores, national rankings are determined and movements mapped over time.

Together, these steps provide a balanced assessment of the state of governance in Indian States, ensuring that both technological advancements and administrative reforms contribute to improved public sector performance.
The State of Governance Score is transformed into the Quality of Governance Transformation Score using Z-score normalisation. The normalised Quality of Governance Transformation Score is then utilised to compute the State of Governance Transformation Index.
Quality of Governance Transformation = State of Governance Score norm

The Quality of Governance Transformation reflects governance improvements based on the normalised State of Governance Score, ensuring a standardised measure to evaluate policy effectiveness, institutional reforms and digital governance initiatives over time.
This framework enables policymakers to identify state-wise disparities, best practices and areas requiring further reforms, fostering an evidence-based approach to governance enhancement.

Methodology

The SKOCH State of Governance Transformation Index employs a structured methodology to ensure empirical accuracy and comparability in assessing governance efficiency across Indian states. This section outlines the data sources, normalisation process and composite index construction used to evaluate governance transformation.

1 Data Sources and Key Variables

The assessment is based on publicly available datasets, administrative records and expert evaluations spanning 2014–2024. The primary data sources include:

• Telecom Regulatory Authority of India (TRAI) Reports – Provides data on tele-density, mobile connectivity and broadband penetration, crucial for assessing digital infrastructure.
• e-Taal Dashboard (Ministry of Electronics and IT) – Tracks real-time digital transactions and e-governance service adoption, offering insights into states digital transformation.
• Unified District Information System for Education Plus (UDISE+) – Measures human capital development through school enrolment ratios and digital literacy readiness.
• Census 2011 – Serves as the baseline dataset for literacy rates and Gross Enrolment Ratio (GER), offering historical context for educational development.
• SKOCH Research and Governance Project Evaluations – Incorporates expert assessments of governance quality, measuring policy impact and innovation across states.

By integrating these datasets, the index ensures a comprehensive, data-driven evaluation of governance transformation, reflecting both quantitative metrics and qualitative governance performance.

Normalisation and Index Construction

To ensure comparability across states, Z-score normalisation is applied, standardising indicators by adjusting for differences in scale and distribution. The normalisation formula is:

where:

• Xi = Raw value of the indicator for state iii
• μ = Mean of the indicator across all states
• σ = Standard deviation of the indicator

This transformation ensures that all variables are comparable, preventing distortions caused by differences in population size or reporting standards.

State of Governance Transformation Score Calculation

The State of Governance Transformation (SGT) is formulated as a weighted composite index that integrates Technical Governance Transformation (TGT) and Quality of Governance Transformation (QGT), ensuring an equitable distribution of influence between infrastructural advancements and governance efficacy:

where:

• SGTi = State of Governance Transformation, representing the overall governance efficiency of a state.
• TGTi = Technical Governance Transformation, capturing the extent of digital infrastructure deployment and service integration.
• QGTi = Quality of Governance Transformation, assessing policy execution, administrative effectiveness and institutional reforms.

This composite index operationalises governance transformation by establishing a standardised metric for cross-state comparability, facilitating quantitative benchmarking and performance evaluation. It enables policymakers to identify structural inefficiencies, evaluate governance responsiveness and drive data-
informed interventions for optimising governance outcomes.

By leveraging statistical normalisation and performance indexing, the State of Governance Transformation Index provides a rigorous, empirically grounded framework for evaluating governance efficiency, enhancing policy accountability and advancing institutional modernisation.

Findings

The State of Governance Transformation Scores are computed for each state for the years 2015, 2019 and 2024, following the established methodological framework. These reference years facilitate a longitudinal analysis of governance performance, enabling a trajectory-based comparative assessment of state-wise transformation trends over time.

This paper presents findings on states dividing them among large states and small states, as classified under the same category used by NITI Aayog in the recently released Fiscal Health Index 2025.

The states analysed as large states in this study include Andhra Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand and West Bengal.

The computed values provide a temporal benchmark for evaluating the progression, stagnation, or regression in governance transformation across states. The resulting dataset is systematically structured in the following tables, with Table 1 presenting the Technical Governance Transformation Scores for all states across the three reference years.

Table 1. Technical Governance Transformation (TGT) Score: Large States

Technical Governance Transformation Score For Large States

Figure1. Technical Governance Transformation Score For Large States with average score

The average Technical Governance Transformation Scores for these states across the three reference years are 0.38 (2015), 0.38 (2019) and 0.43 (2024).

States with scores above the average for each respective year are:

• 2015: Andhra Pradesh, Gujarat, Himachal Pradesh, Kerala, Maharashtra, Punjab, Tamil Nadu, Telangana
• 2019: Andhra Pradesh, Gujarat, Himachal Pradesh, Kerala, Maharashtra, Punjab, Telangana
• 2024: Andhra Pradesh, Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Punjab, Telangana, Uttarakhand, West Bengal

These findings indicate significant variations in state-wise technical governance transformation, with some states demonstrating consistent progress in digital infrastructure and technology-driven governance, while others exhibit stagnation or decline in their technical governance capabilities over time.

Now, let’s focus on Table 2, which delineates the state-wise Quality of Governance Transformation Scores for the years 2015, 2019 and 2024 and provides a structured analysis of the impact, outcome and scale of transformational projects across states.

Table 2. Quality of Governance Transformation (QGT) Score: Large States

Quality of Governance Transformation – Large States

Figure 2. Quality of Governance Transformation – Large States with average score

The average Quality of Governance Transformation Scores for these states across the three reference years are 0.18 (2015), 0.43 (2019) and 0.37 (2024).

States with scores above the average for each respective year are:

• 2015: Gujarat, Madhya Pradesh, Maharashtra, West Bengal
• 2019: Andhra Pradesh, Gujarat, Madhya Pradesh, Maharashtra, Rajasthan, Telangana, West Bengal
• 2024: Andhra Pradesh, Gujarat, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, West Bengal

These findings indicate significant state-wise variations in governance transformation over time, with some states showing consistent progress while others exhibit fluctuating or stagnant governance performance.

Finally, we present the State of Governance Transformation Score, which encapsulates the key findings of our study based on the computed data outlined in the methodology. Table 3 illustrates the state-wise Governance Transformation Scores for the years 2014, 2019 and 2024.

Table 3. State of Governance Transformation (SGT) Score: Large States

State of Governance Transformation – Large States

Figure 3. State of Governance Transformation for Large States with average score

The average State of Governance Transformation Scores for these states across the three reference years are 0.28 (2015), 0.41 (2019) and 0.40 (2024).

States with scores above the average for each respective year are:

• 2015: Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Kerala, Madhya Pradesh, Maharashtra
• 2019: Andhra Pradesh, Gujarat, Haryana, Kerala, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Telangana, West Bengal
• 2024: Andhra Pradesh, Gujarat, Haryana, Kerala, Maharashtra, Tamil Nadu, Telangana, West Bengal

These findings indicate substantial variations in governance transformation across states, with some states demonstrating sustained improvements in governance performance, while others exhibit inconsistent or declining transformation trends over the years.

Next, we analyse the performance of small states, namely Arunachal Pradesh, Goa, Manipur, Meghalaya, Mizoram, Nagaland, Sikkimand Tripura.

Technical Governance Transformation – Small States

Table 4. Technical Governance Transformation (TGT) Score: Small States

Figure 4. Technical Governance Transformation score for small states with average score

The average Technical Governance Transformation Scores for small states across the three reference years are 0.35 (2015), 0.46 (2019) and 0.40 (2024).

States with scores above the average for each respective year are:

• 2015: Manipur, Meghalaya, Mizoram, Tripura
• 2019: Goa, Meghalaya, Mizoram, Tripura
• 2024: Goa, Meghalaya, Mizoram, Tripura

Table 5. Quality of Governance Transformation (QGT) Score: Small States

Quality of Governance Transformation – Small States

Figure 5. Quality of Governance Transformation score for small states with average score

The average Quality of Governance Transformation Scores for small states across the three reference years are 0.40 (2015), 0.51 (2019) and 0.41 (2024).

States with scores above the average for each respective year are:

• 2015: Meghalaya, Sikkim, Tripura
• 2019: Arunachal Pradesh, Meghalaya, Sikkim, Tripura
• 2024: Arunachal Pradesh, Sikkim, Tripura

Table 6. State of Governance Transformation (SGT) Score: Small States

State of Governance Transformation – Small States

Figure 6. State of Governance Transformation score for small states with average score

The average State of Governance Transformation Scores for small states across the three reference years are 0.37 (2015), 0.48 (2019) and 0.41 (2024).

1 Trends in Governance Transformation

Between 2015 and 2019, governance transformation was characterised by rapid advancements in digital infrastructure, increased adoption of online public services and improvements in administrative efficiency. Key factors driving this progress included:

• Expansion of e-governance services and digital transactions through platforms like e-Taal and CPGRAMS.
• Administrative efficiency improvements via e-office implementation and process automation.
• Early benefits of Digital India initiatives, resulting in higher public service accessibility and transparency.

However, between 2019 and 2024, the momentum slowed. The rate of governance transformation stagnated, reflecting the diminishing impact of earlier reforms and insufficient infusion of new technologies such as AI-driven governance. The findings suggest that governance progress remains uneven, with some states sustaining improvements while others show regression in governance efficiency.

2 Comparative Performance: Leading and Lagging States

The assessment highlights clear state-level disparities in governance transformation.

• Andhra Pradesh, Gujarat and Telangana emerged as the top-performing states, exhibiting sustained investments in AI-driven governance, digital infrastructure and streamlined administrative processes.
• Maharashtra and Kerala demonstrated moderate governance transformation, with high digital adoption but limited expansion of AI-based decision-making at the district level.
• Bihar, Jharkhand and Odisha consistently ranked below the national average, reflecting weaker governance implementation, slower digital adoption and administrative inefficiencies.
• West Bengal and Rajasthan showed notable improvements between 2015 and 2019, but stagnation post-2019 indicates the need for renewed governance strategies.

3 Stagnation in Governance Reforms Post-2019

The 2019–2024 period marks a notable slowdown in governance transformation, attributed to:

• Limited expansion of AI-driven automation in public services.
• Administrative bottlenecks and fragmented execution of policy reforms.
• Fiscal constraints limiting large-scale governance improvements.

4 Relationship Between E-Governance Investment and Performance

The analysis highlights a direct correlation between digital investments and governance efficiency:

• States prioritising AI-driven governance and real-time service delivery (e.g. Andhra Pradesh, Gujarat and Telangana) exhibit consistently high transformation scores.
• States with lower adoption of digital public services and weaker administrative execution (e.g., Bihar, Jharkhand and Chhattisgarh) report lower governance transformation scores.
• West Bengal and Odisha showed improvements post-2015 but lacked sustained governance innovations, leading to stagnation post-2019.

These findings suggest that governance transformation cannot solely rely on infrastructure investments but requires continuous administrative modernisation and technology integration.

5 Areas Requiring Policy Reforms

The findings indicate that India’s governance transformation is at a critical juncture, necessitating
strategic reforms in the following areas:

• AI-driven governance – Expanding predictive analytics and AI-driven decision-making to enhance administrative efficiency and governance responsiveness.
• Decentralised Administrative Reforms – Strengthening governance structures at the district, municipal and panchayat levels to improve localised service delivery and economic development.
• Digital Infrastructure Expansion – Addressing regional disparities in digital service accessibility, particularly in underperforming states such as Bihar, Jharkhand and Chhattisgarh.
• Impact-Oriented Policy Implementation – Ensuring governance expansion aligns with measurable administrative outcomes, emphasising data-driven performance monitoring.

Limitations of the Study

While the State of Governance Transformation Index presents a methodologically rigorous framework for evaluating governance efficiency, certain structural and contextual considerations must be acknowledged:

State-Level Participation Variability in Project Evaluations

The Quality of Governance Transformation Score is influenced by the extent of state participation in project evaluations under the SKOCH State of Governance framework. States with lower project submissions or limited engagement in the evaluation process may have underrepresented governance transformation efforts, impacting their final scores.

Differential Digital Governance Adoption Rates

While Technical Governance Transformation is assessed through standardised indicators, variations in state-level digital adoption strategies and governance digitisation priorities may not be fully captured. Some states may prioritise sector-specific governance digitalisation, leading to differentiated technical governance transformation trajectories.

Assessment Scope Limited to Available Policy Interventions

The index primarily evaluates governance transformation through documented policy interventions and project-based performance metrics. States with effective governance models but lower formalised project documentation may exhibit lower transformation scores despite high governance efficiency in practice.

Temporal and Methodological Considerations in Normalisation

The use of Z-score normalisation ensures comparability across states; however, the methodology assumes linear comparability of governance transformation over time. Governance outcomes are often influenced by contextual factors such as fiscal constraints, socio-economic variations and institutional adaptation, which are not explicitly accounted for in standardised transformations.

Sectoral Weightage and Inter-State Comparability

Governance transformation varies sectorally (e.g., digital services, infrastructure governance, human capital development). The index applies uniform weightage to the technical and qualitative dimensions, which may not reflect sector-specific governance priorities across states.

Future Research Considerations To further enhance granularity and methodological robustness, future iterations could:

• Expand the scope of governance transformation assessments to district-level administrative efficiency.
• Integrate real-time governance impact tracking metrics through AI-driven governance dashboards.
• Introduce weighted sectoral governance scores, allowing for context-sensitive governance evaluations.

Despite these considerations, the study offersa comprehensive and structured assessment ofgovernance transformation trends, providing a valuable foundation for comparative governance analysis and policy enhancements.

Conclusion

India’s State of Governance Transformation reflects a decade of progress, yet systemic inefficiencies persist. In an era of AI-driven policymaking and digital globalisation, the challenge is expanding e-governance and ensuring last-mile efficiency, fiscal sustainability and institutional resilience. To achieve Viksit Bharat by 2047, the future demands adaptive governance that balances technology with equity,
accountability and public trust.

References

1. Government of India, Digital India Programme, Ministry of Electronics and IT, 2015
2. SKOCH Group, State of Governance Reports
3. NITI Aayog, Fiscal Health Index, 2025
4. NITI Aayog, Public Expenditure and Governance Efficiency, 2023
5. Supreme Court of India, Judgment on Fiscal Sustainability and Welfare Expenditure, 2023
6. United Nations, E-Government Development Index Report, 2022
7. Economic Survey of India, Digital Public Infra- structure and Governance Transformation, 2024
8. TRAI Reports, Telecommunication and Digital Connectivity Trends, 2024
9. e-Taal Dashboard, Real-time E-Governance Service Adoption Metrics, Ministry of Electronics and IT
10. Census 2011, Baseline Data for Literacy Rates and Gross Enrolment Ratio (GER)
11. UDISE+ (Ministry of Education), Human Capital Development and Digital Literacy Reports