Panchayat Advancement Index (PAI) 2.0

News: The Ministry of Panchayati Raj released Panchayat Advancement Index 2.0 Report for FY 2023–24 on National Panchayati Raj Day 2026.

About Panchayat Advancement Index (PAI) 2.0

• It is the nationwide framework to measure the progress of Rural Local Government Institutions (Gram Panchayats (GPs)/Traditional Local Bodies (TLBs)) using objective and verifiable indicators.
• Introduced in: The Panchayat Advancement Index was introduced in 2025, and its first baseline report was released for FY 2022–23.
• Launched by: It is launched by Ministry of Panchayati Raj.
• Objective: The index aims to promote evidence-based planning, performance monitoring, and incentivisation of Panchayati Raj Institutions, while supporting Gram Panchayat Development Plans and identifying best practices.
• Index is anchored in: The Index is anchored in the framework of Localization of Sustainable Development Goals (LSDGs), which aggregates the 17 global SDGs into 9 thematic areas relevant to Panchayati Raj Institutions
• Key Aspects
  • Nine Thematic Areas: PAI 2.0 evaluates Panchayats across nine themes under Localization of Sustainable Development Goals, namely Poverty, Health, Child Welfare, Water, Environment, Infrastructure, Social Justice, Good Governance, and Women’s Empowerment.
  • Performance Categories: Panchayats are classified into five categories based on scores to enable benchmarking and competition.
    • Achiever (A+ : 90 and above)
    • Front Runner (A : 75 to below 90)
    • Performer (B : 60 to below 75)
    • Aspirant (C : 40 to below 60)
    • Beginner (D : below 40)
  • Refinement: The framework has been simplified in comparison to PAI Version 1.0, where indicators have been reduced from 516 indicators and 794 data points to 150 indicators and 230 data points, along with features like single integrated data entry form, real-time dashboards, and validation mechanisms for better accuracy and usability.
  • State Inclusion: The exercise covered 33 States and UTs, though West Bengal did not participate, and Delhi and Chandigarh were excluded due to absence of Gram Panchayats.
• Key Findings
  • National Participation: The index recorded 97.30% participation, with 2,59,867 Panchayats submitting validated data, showing improvement from earlier version.
  • Front Runner Status: A total of 3,635 Gram Panchayats were placed in the Front Runner category (Grade A) based on composite scores.
  • Largest Segment: The Performer category (Grade B) includes 1,18,824 Panchayats (45.72%), making it the largest group.
  • Highest Performing State: Tripura emerged as the top performer, with nearly 80% Panchayats achieving Front Runner status.
  • Zero Achievers (A+): No Panchayat achieved the Achiever (A+) category, which requires very high composite scores.
  • Maximum Participation: Uttar Pradesh recorded full participation, with all 57,678 Panchayats submitting data.