India's Competitive Federalism and State Rankings

In India's competitive federalism, both the Centre and state governments are pivotal in driving policy initiatives and reforms. As India aims to become "Viksit Bharat" by 2047, the role of states is of paramount importance. States have diverse development trajectories, necessitating periodic assessments of their performance.

Assessment Framework and Pillars

• Seven pillars used for assessment: 
  1. Economic
  2. Fiscal
  3. Social
  4. Financial Development
  5. Infrastructure
  6. Governance
  7. Environment
• Comprehensive study using 50 indicators across these pillars.
• Composite score derived from a weighted average of indicators.
• Weights based on impact and data availability.

Weights Assigned to Pillars

• Economic and Fiscal Pillars: Combined weight of 45%. 
  1. Focus on deficit, government debt, and quality of expenditure.
  2. Includes capital expenditure on health and education.
• Financial Development and Infrastructure: 15% each. 
  1. Covers physical, agricultural, and social infrastructure.
• Social and Governance: 10% each. 
  1. Social includes education, health, poverty, and labor market.
  2. Governance assesses institutional strength and public service delivery.
• Environment: 5%. 
  1. Expected to gain prominence in the long run.

State Rankings

• Large States:
  1. Maharashtra: Ranks first, strong in financial development, economic, social, and fiscal pillars.
  2. Gujarat: Second, high in economic and infrastructure pillars.
  3. Karnataka: Third, excels in economic, fiscal, governance, and environment pillars.
  4. Bihar and Jharkhand: Bottom ranks due to poor performance in financial development, social indicators, and infrastructure.
• Northeast, Hilly, and Small States:
  1. Goa: Tops with superior scores across most pillars.

Pillar-Specific Highlights

• Economic Pillar: Gujarat leads with high per capita income and investment.
• Fiscal Pillar: Odisha tops due to significant fiscal reforms.
• Infrastructure: Punjab excels, yet struggles with capital expenditure.
• Social Pillar: Kerala leads in education and health but faces high unemployment.
• Governance: Andhra Pradesh excels in business environment and judiciary strength.

Conclusion

The study aims to provide a comprehensive assessment of state performance, highlighting best practices for others to emulate. Such evaluations are crucial for policymakers, investors, researchers, and citizens, fostering competitive federalism.