Kerala has emerged as the leader in urban governance, securing the top spot in the Urban Governance Index (UGI) 2024, according to a comprehensive two-year study conducted by the Praja Foundation. The study, which assessed multiple Indian cities, mapped progress, developments, and policy changes across 42 UGI indicators.

With an overall UGI score of 59.31%, Kerala significantly improved its performance compared to 2020, where it had a score of 48.77% and ranked 4th. This advancement is attributed to newly included cities and key reforms that have strengthened its urban governance framework.

Kerala performed exceptionally well in two critical areas: Empowered City Elected Representatives and Legislative Structure (18.63/30.00), and Fiscal Empowerment (23.22/30.00). Notably, Kerala is one of only four states (along with Chhattisgarh, Mizoram, and Odisha) that mandates every councillor to be part of at least one deliberative committee, ensuring broad participation in decision-making.

Additionally, Kerala is part of a group of nine states and one Union Territory (Delhi, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Mizoram, Uttar Pradesh, Uttarakhand, and West Bengal) that have granted independent authority to local governments to introduce new taxes or charges in their Municipal Acts, as well as the power to revise tax rates and charges. Furthermore, Kerala is among 13 states where municipal acts mandate the publication of budgets and accounts in the public domain, fostering greater transparency.

One unique aspect of Kerala’s governance model is that the Mayors are authorised to write the Annual Confidential Report (ACR) of the Commissioner (referred to as the Secretary), enhancing the accountability of the executive arm of the local government. The state's municipal laws also ensure that all councillors are part of at least one subject or standing committee, further strengthening participatory governance.

Despite Kerala’s leadership in fiscal empowerment, the report highlighted areas for improvement, particularly in further enhancing the autonomy of city administrations.

On average, the UGI score for the 28 states, 2 Union Territories, and the National Capital Territory of Delhi stood at 39.70%, with Kerala outshining its peers in urban governance. Other top-performing states include Odisha, Maharashtra, Chhattisgarh, and Madhya Pradesh, while Nagaland, Manipur, Meghalaya, Chandigarh, and Punjab ranked at the bottom.