BS EDIT: India’s decentralisation report: Key takeaways

By Business StandardPublished On Feb 26, 2025

How decentralised is India?

• A Devolution Index (DI) evaluates state-wise progress in PRIs

• Measures governance, finances, and accountability

Best & worst performers

• Top states: Karnataka (72.23 DI score), Kerala, Tamil Nadu

• Biggest gains: Uttar Pradesh, Bihar

• Lagging states: Manipur, Arunachal Pradesh, Jharkhand, Punjab

Financial challenges for PRIs

• Low financial autonomy—heavy dependence on state transfers

• Kerala’s GPs lead but contribute just 2.84% of state revenue

Gaps in infrastructure & manpower

• Staff shortages hinder governance

• Northeastern states face poor digital & physical infrastructure

Women’s representation: Progress & gaps

• Jharkhand, Tamil Nadu, Chhattisgarh exceed quotas

• Punjab, Madhya Pradesh, Karnataka lag behind

Key reforms needed

• Empower GPs to levy property tax

• Ensure timely state finance commissions

• Improve electoral & accountability mechanisms