Panchayat Advancement Index: Strengthening Data-Driven Decision-Making for rural transformation

SUSHIL KUMAR LOHANI

Across India’s villages, a silent but powerful shift is underway. From a panchayat in Maharashtra installing CCTV and streetlights after scoring poorly on the “Women-Friendly Panchayat” theme to a village in Gujarat launching rapid sanitation drives after weak scores in the “Clean & Green Panchayat” category, the Panchayat Advancement Index (PAI) is beginning to reshape how grassroots development is planned and delivered. In many Panchayats, gaps noticed in PAI, such as low institutional delivery, poor waste management, or water scarcity, have directly triggered targeted interventions based on PAI scores.

These early use cases indicate a simple but powerful truth - when panchayats can see their strengths and weaknesses clearly, they act faster and more accurately. For decades, rural development in India relied heavily on manual reports, subjective perceptions and political priorities. Today, PAI brings a new model – transparent, data-driven & SDG-aligned, to the heart of rural administration.

Launched by the Ministry of Panchayati Raj, the Panchayat Advancement Index is India’s first countrywide framework to measure the progress of Gram Panchayats using objective indicators across critical areas relating to sanitation, health, governance, women’s empowerment, infrastructure, environmental sustainability, etc., organised across nine themes of Localisation of Sustainable Development Goals (LSDGs) derived from 17 SDG goals. Logically, the attainment of SDGs at the national level will require actions at the local level where Panchayats can play a pivotal role. In this context, PAI provides an evidence-based mechanism for tracking progress in achieving the LSDGs and thereby SDGs in rural areas.

The Panchayat Advancement Index (PAI) is computed through a robust, multi-step process using 435 unique local indicators across nine themes. While the Ministry of Panchayati Raj develops the indicator framework in consultation with other Ministries, Departments and State Governments, the actual data is collected by Gram Panchayats and concerned line departments through a common portal, pai.gov.in, at the GP level, which is then validated through several administrative layers, including Gram Sabha verification. The score for each theme is derived from these indicators on a 0-100 scale which, in turn, determine the overall PAI score (0-100), based on which Panchayats are classified into five grades for comparison. 

The inaugural survey for the financial year 2022-23 revealed interesting insights: of the 2.16 lakh Panchayats who submitted validated data, none qualified as “Achievers” (scores above 90), 0.3% were “Front Runners” (75-89.99), 35.8% were “Performers” (60-74.99), while a majority of 61.2% were “Aspirants” (40-59.99), and 2.7% were “Beginners” (below 40). States like Gujarat and Telangana topped the chart with the highest number of high-performing panchayats.

Realising its immense potential in strengthening grassroots governance, state governments are disseminating PAI scores among various stakeholders through workshops at block, district and state levels. Panchayats have also started displaying the PAI scorecards outside their offices for transparency and citizen engagement. Discussions on PAI scores is also one of the agenda in the Gram Sabha meetings.

PAI’s strength lies in its practical use. Early signals show states like Gujarat using PAI scores for allocating special grants to weak Gram Panchayats to bridge critical gaps. Sikkim has decided to adopt the PAI score as a criterion for allocating performance grants under its 6th State Finance Commission. Across many states, PAI has become a key tool for evidence-based planning, helping Panchayats identify and prioritise focus areas in their Gram Panchayat Development Plans (GPDPs).  Karnataka, Tamil Nadu, Sikkim, Chhattisgarh, etc. are converting top-scoring Gram Panchayats as Panchayat Learning Centres, while States like Jharkhand, Bihar, Kerala, Punjab and Rajasthan are selecting such Gram Panchayats for curated exposure visits of PRIs. Several states now link PAI performances with recognition & awards. Maharashtra offers major awards under the Chief Minister’s scheme; Sikkim and MP provide financial incentives, whereas Punjab, Jharkhand, UP, Arunachal Pradesh and Tripura felicitate high-scoring Panchayats at state-level events.  PAI scores are increasingly embedded in structured training programmes and field workshops.

PAI has converted hard-to-understand social, economic, and environmental indicators into easy-to-understand themes that guides targeted planning and decision-making. Dashboards, scorecards, and digital tools assist in Panchayat-level governance that is based on evidence. However, PAI is still new; its first baseline report covers 2022-23, so there aren’t many long-term case studies that show direct, measurable improvements. Due to uneven technical capacity, inadequate understanding of data points and inconsistent reporting systems, data quality varies across regions. Convergence among line departments and PRIs is improving but remains fragmented.

These are not challenges, but opportunities.  Learning from this, the Ministry has now simplified the process for PAI 2.0 by reducing the number of unique indicators from 435 to 119, adopting more relevant and refined indicators, and improving workflows, making data collection easier and of improved quality. The Ministry’s clearer operational guidelines and easier processes have led to its adoption by almost all States/UTs, with more than 2.60 lakh panchayats participating in the second round against 2.16 lakh earlier, demonstrating a strong direction. A massive capacity-building programme has also been launched to improve the understanding of the indicators and data points among elected representatives, panchayat functionaries and line department staff.

The transformative potential of PAI cannot be overstated. PAI democratises data, enabling citizens to hold their elected representatives accountable, thereby deepening democratic governance. It promotes transparency and encourages healthy competition among panchayats. As thematic PAI scores are derived from several indicators linked to various sectors, PAI, by design, encourages collaboration among ministries and departments to achieve better development outcomes. What sets the PAI apart is its alignment with the global SDGs and its innovative localisation of these goals (LSDGs) at the village level. The model truly internalises the SDG principles by measuring development through PAI scores, which makes it a unique and potentially global best practice.

In sum, the Panchayat Advancement Index is a landmark initiative that redefines rural governance in India. It is a critical instrument to ensure that India meets its Sustainable Development Goals by 2030 through evidence-based, participatory, and decentralised development planning. As India strives for equitable growth and social justice in its pursuit of Viksit Bharat, the PAI stands as a beacon guiding panchayats from data to development, from insights to real impact.

(Sushil Kumar Lohani is an IAS officer and currently working as Additional Secretary, Ministry of Panchayati Raj in Government of India. A PIB feature)