Local Governance in India

The Panchayati Raj system and municipal bodies serve as the first point of contact between citizens and the state. However, grassroots governance in India often struggles with inaccessible, detailed data, which limits the ability of panchayat leaders to assess their communities effectively.

The Importance of Micro Data at the Local Level

Micro data collected at the household or community levelis crucial for making informed decisions in local governance.

1. Understanding Intra-Village Inequalities:

   • Localized data can help identify social hierarchies (such as caste-based exclusion) and inequalities within villages that are not visible at the district or state level. This is particularly important for targeting welfare programs accurately.

2. Identifying Hyperlocal Priorities:

   • Data specific to individual communities can reveal issues like water stress, migration patterns, or women's unpaid labor that a macro-level approach may overlook.

3. Enabling Evidence-Based Decision Making:

   • Micro data can enable panchayats to make decisions based on actual community needs—ensuring that public services (water, sanitation, education) are effectively delivered and that welfare programs are monitored for effectiveness.

4. Improving Monitoring and Evaluation:

   • With localized data, panchayats can track progress on various indicators (e.g., SDGs) in real-time, making it easier to adjust programs and improve outcomes.

Challenges in Implementing Micro Data in Local Governance

1. Usability of Available Data:

   • While the government provides enormous datasets through platforms like the National Data Sharing and Accessibility Policy (NDSAP), these are often unfriendly for the public, even for trained researchers. The format of these datasets and their complexity limits their usability.

2. Localized Problems Not Captured in Macro-Data:

   • The ‘top-down’ approach to data collection often fails to capture hyperlocal issues. Problems such as caste-based exclusion or specific water scarcity in remote areas are invisible at higher levels of governance.

3. Disconnected Data at Grassroots:

   • Local data is often generated for use at higher administrative levels (e.g., by secretaries or departmental heads), leaving panchayat leaders without access to timely and actionable data.

4. Technical Limitations:

   • Panchayat leaders often lack the technical expertise to analyze and interpret complex datasets, making it difficult for them to make data-driven decisions.

5. Delayed Census and Inconsistent Data:

   • Census delays and the inconsistent availability of time-series data hinder the evidence-based policymaking process.

Other Key Challenges Facing Panchayats in India

1. Inadequate Financing:

   • Panchayats often depend heavily on funds from higher tiers of government. Revenue generation at the local level is limited. According to a study by the Reserve Bank of India (RBI), the average revenue per panchayat was ₹21.23 lakh in 2022-23, with only 1.1% coming from local taxes and fees.

2. Technological and Digital Literacy Gaps:

   • Low digital literacy and insufficient technological infrastructure make it hard for panchayats to leverage digital tools for governance. Real-time tracking of SDG progress is especially challenging without access to modern data infrastructure.

3. Fragmentation in Rural Governance:

   • Multiple government departments operate in villages without adequate coordination, leading to duplication of efforts and inefficient use of resources. The lack of convergence between schemes further hampers holistic development.

Key Steps Taken by the Government to Address These Challenges

1. Panchayat Advancement Index (PAI) Baseline Report (2022-23):

   • This report provides a micro-level assessment of panchayats, helping local leaders identify gaps and make informed decisions. The PAI is aligned with the Localization of Sustainable Development Goals (LSDGs), making it an essential tool for monitoring local governance progress.

2. National Data and Analytics Platform (NDAP):

   • NDAP is a government initiative that provides easy access to datasets, allowing local bodies to analyze trends and improve governance. This platform simplifies data and facilitates data-driven policymaking.

3. Open Government Data (OGD) Platform:

   • The OGD Platform provides public access to datasets from various ministries and departments. This promotes transparency and enables local bodies to make informed decisions.

4. Role of Civil Society Organizations (CSOs):

   • Over 4,000 institutions under the Unnat Bharat Abhiyan can help enhance impact at the grassroots level. The ‘hand-holding’ model—complemented by expertise from CSOs and institutions—can support local governance and help achieve SDG targets.

5. Technological Integration:

   • eGramSwaraj: This digital governance tool, available in 22 languages, facilitates fund management and real-time monitoring.

   • SVAMITVA Scheme: Through drone surveys, over 3.17 lakh villages have received property cards, empowering rural property owners and improving land management.

   • Micro Matters Initiative: Under India’s G20 presidency, this initiative focuses on data-driven development using big data analytics, AI, and IoT to improve local governance.

Conclusion

Integrating micro data into local governance systems is crucial for strengthening panchayats and improving the quality of governance. By enabling data-driven decision-making, local institutions can become more efficient, responsive, and transparent in their operations. India’s investments in digital infrastructure and AI-driven data analytics aim to create a more efficient, accountable, and inclusive governance system at the grassroots level.