Benchmarking performance of governance quality in Indian states using MCDM techniques

Abstract

PurposeThe purpose of this paper is to benchmarking the governance performance of Indian states.Design/methodology/approachThis paper provides a framework to measure governance performance at the state level. Using the data on 28 key indicators, the authors evaluate Indian states on seven broad dimensions of governance quality covering several aspects of public service delivery, regulatory quality and law and order. The empirical methodology involves the application of multi-criteria decision making techniques in two steps. The authors, first develop suitable weights of the identified dimensions and criteria under each dimension by applying the inputs of an expert-based decision-panel in a best-worst framework. Next, using these weights, the authors evaluate ranking of each state using TOPSIS and PROMETHEE-II methods.FindingsThe results indicate wide disparities in the governance performance of Indian states. Based on different indicators, the paper evaluates the rank of all the major Indian states. Results reveal that “Social Service Delivery(S)” is the most influencing dimension for the development of a state. Overall, the authors find Andra Pradesh, NCT of Delhi and Goa to be the leading states in terms of governance quality.Research limitations/implicationsThe paper provides policy makers with easy to use operational indicators to analyse the governance performance of Indian states. These would help in better monitoring of these states through competitive goal-setting for continuous improvement.Originality/valueTo the best of the authors’ knowledge, this study is the first formal assessment of governance quality in the Indian states in a multi-criteria framework. To this end, the paper addresses the issue of wide regional disparities in the country. The findings of the paper provide powerful insights to policy makers in setting up appropriate strategies to eliminate these disparities.