Take a look at the essential concepts, terms, quotes, or phenomena every day and brush up your knowledge. Here’s your knowledge nugget on the Panchayat Advancement Index.(Relevance: This is an important topic from Prelims perspective. Last year, there was a question on Panchayats in the Prelims. Similarly, questions on this topic have been asked in the Mains as well. Understanding this topic and connecting it with the static portion is crucial for your exam preparedness.)The Panchayat Advancement Index (PAI) 2.0, which assessed 2,59,867 rural local bodies based on their performance and progress across nine themes aligned with the Sustainable Development Goals (SDGs), was released by the Ministry of Panchayati Raj. It covers all Gram Panchayats in the country, except West Bengal.Gear up for UPSC Prelims 2026—Practice smarter, revise faster, and succeed with our Special Quiz Magazine. Click HereKey takeaways:1. The inaugural edition was launched last year which ranked over 2.16 lakh panchayats based on their performance and progress towards achieving Sustainable Development Goals (SDGs).2. PAI is a multi-dimensional index used to assess the implementation of Localization of Sustainable Development Goals (LSDGs) across nine broad themes.3. This year panchayats are assessed based on their performance across 150 indicators covering nine SDGs –from poverty-free and enhanced livelihoods to women-friendly panchayats—during the 2023-24 financial year.Story continues below this ad4. Under PAI, the Gram Panchayats have been ranked under five categories based on their score on a scale of 0-100: ‘Achiever’ (90-100), ‘Front Runner’ (75-90), ‘Performer’ (60-75), ‘Aspirant’ (40-60 ) and ‘Beginner’ (below 40).5. Of the 2,59,867 Gram Panchayats, 3,635 have been ranked as ‘Front Runner’, 1,18,824 as ‘Performer’, 1,23,719 as ‘Aspirant’, and 13,689 as ‘Beginner’. No panchayat could make it to the ‘Achiever’ category.6. Among the ‘Front Runner’ panchayats, 943 were in Tripura, which constituted 80 per cent of the state’s total 1,176 rural local bodies. The state was followed by Kerala, where 10 per cent of its 941 Gram Panchayats have been assessed as ‘Front Runner’. With 8 per cent of its total 6,794 Gram panchayats assessed as ‘Front Runner’, Odisha stood next.7. Panchayats in these states have performed relatively better vis-à-vis several big states. For instance, only 51 of 57,678 Gram Panchayats in Uttar Pradesh were assessed as ‘Front Runner’. In Rajasthan, the number stood at eight out of 11,037; in Bihar, 2 out of 8,053; and in Punjab, just one out of 13,233.Story continues below this adObjective of introducing PAI:1. In 2015, the United Nations devised 17 Sustainable Development Goals (SDGs) to be achieved by member countries by 2030, such as No Poverty, Zero Hunger, Reduced Inequality, and Climate Action.2. These goals cover 269 targets whose progress is monitored through 231 indicators. While the UN monitors the implementation progress of SDGs at the country level, India’s top government think tank, the NITI Aayog, tracks state-wise progress through its SDG India Index that was launched in 2018. In recent years, the localisation of SDGs has been emphasised.3. Recognising the crucial role of panchayats in local governance, the government has focused on aligning them with the SDGs. The PAI was thus developed as “a key metric for assessing progress at the grassroots level, aiding in the formulation of localized strategies and targets for inclusive rural development.”4. The Index is built on the framework of Localization of Sustainable Development Goals (LSDGs), which consolidates the 17 global SDGs into nine thematic areas relevant to Panchayati Raj Institutions.Story continues below this ad5. It reinforces the Government’s commitment to strengthening Panchayati Raj Institutions and advancing the vision of “Viksit Gram Panchayats” through participatory, transparent, and data-driven local governance.UPSC ESSENTIALSStatus of three-tier government in India: India has about 2.63 lakh panchayats in all three tiers – Gram Panchayat (at village level), Panchayat Samiti (at block level) and Zila Parishad (at district level) – with 32.29 lakh elected representatives, of which 15.03 lakh (46.6 per cent) are women.Panchayati Raj Institute in India1. “Panchayat”, being “Local Government”, is a State subject and part of the State List of Seventh Schedule of the Constitution. Panchayats are set up and operate through the respective State Panchayati Raj Acts.2. Article 243G of the Constitution empowers the Legislature of a State to make provisions, by law, for the devolution of power and responsibilities upon Panchayat at the appropriate level. There are 29 subjects listed in the Eleventh Schedule for devolution of power and responsibilities to Panchayats.3. All matters relating to Panchayats, including, periodic monitoring and review of Panchayats, posting of functionaries at Panchayat level and to take steps to enhance autonomy & accountability, fall within the purview of State Government.Story continues below this ad3. However, the Ministry of Panchayati Raj conducts periodic reviews of performance of Panchayats, through studies, review meetings, field visits, video conferencing, Information Technology applications etc.Here are the measures used for the periodic reviews.BEYOND THE NUGGET: Periodic review of PRIs1. Panchayat Devolution Index: It was released by the Union Ministry of Panchayati Raj based on a study conducted by the Indian Institute of Public Administration (IIPA). The index was last published in 2014 and, over the past decade, the national average score rose from 39.92 to 43.89.— The IIPA studied 172 panchayats in 68 districts across India to measure the performance of the panchayat system on six parameters: framework, functions, finances, functionaries, capacity building, and accountability. It scales state on a scale of 0 to 100.— Karnataka, Kerala, and Tamil Nadu topped the index and Uttar Pradesh and Bihar recorded the biggest improvement. The national average proportion of women representatives is 46.44%, marginally up from 45.9% in 2013-14.Story continues below this ad2. eGramSwaraj: It is a user-friendly web-based portal, which aims to bring in better transparency in the decentralized planning, progress reporting, financial management, work-based accounting and details of assets created. It is integrated with the Public Financial Management System for online transfer of the Central Finance Commission funds by the States to PRIs and enabling Panchayats to make real-time payments to vendors/service providers.3. Rashtriya Gram Swaraj Abhiyan (RGSA): It is a Centrally Sponsored Scheme with the objective of supporting Panchayati Raj institutions by imparting trainings to Elected Representatives and other stakeholders to develop leadership abilities, thereby enabling Gram Panchayats to function effectively across all States/UTs.Post Read Questions(1) Consider the following statements about the Panchayat Advancement Index (PAI):1. It is released by the NITI Aayog.2. It assesses the implementation of Localization of Sustainable Development Goals (LSDGs) across nine broad themes.Story continues below this ad3. Of the 2,59,867 Gram Panchayats, 3,635 have been ranked as ‘Achiever’ in PAI 2.0.How many of the above statements is/are correct?(a) Only one(b) Only two(c) All three(d) None(2) Consider the following statements: (UPSC CSE 2025)I. Panchayats at the intermediate level exist in all States.II. To be eligible to be a Member of a Panchayat at the intermediate level, a person should attain the age of thirty years.III. The Chief Minister of a State constitutes a commission to review the financial position of Panchayats at the intermediate levels and to make recommendations regarding the distribution of net proceeds of taxes and duties, leviable by the State, between the State and Panchayats at the intermediate level.Which of the statements given above are not correct?(a) I and II only(b) II and III only(c) I and III only(d) I, II and IIIStory continues below this adAnswer key1. (a) 2. (d)(Sources: Here’s how 2.5 lakh Gram Panchayats ranked in PAI 2.0 report, sansad.in, PAI)Also read: What the Panchayat Devolution Index reveals about strengthening local governance, Role of Panchayati Raj in strengthening local governance, Gender Mainstreaming | How Manju Devi in Panchayat reflects a widespread reality in India)Subscribe to our UPSC newsletter. Stay updated with the latest UPSC articles by joining our Telegram channel – IndianExpress UPSC Hub, and follow us on Instagram and X. Click Here to read the UPSC Essentials magazine for April 2026. Share your views and suggestions in the comment box or at manas.srivastava@indianexpress.com