Kerala has secured the top position in urban governance, leading the Urban Governance Index (UGI) 2024, according to a thorough two-year study by the Praja Foundation. The study assessed various Indian cities, monitoring advancements and policy changes across 42 UGI indicators. Kerala achieved an overall UGI score of 59.31%, a significant rise from its 2020 ranking of 4th with a score of 48.77%. This impressive progress is attributed to the inclusion of more cities and crucial reforms that have strengthened the state's urban governance framework.

Kerala excelled in two critical areas: Empowered City Elected Representatives and Legislative Structure, with a score of 18.63 out of 30, and Fiscal Empowerment, scoring 23.22 out of 30. Notably, Kerala is one of only four states, alongside Chhattisgarh, Mizoram, and Odisha, requiring all councillors to engage in at least one deliberative committee, thereby promoting inclusive decision-making throughout the governance process.

Kerala is one of nine states and one Union Territory (Delhi, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Mizoram, Uttar Pradesh, Uttarakhand, and West Bengal) that have granted local governments the independent authority to implement new taxes or charges and revise tax rates under their Municipal Acts. Furthermore, Kerala is among 13 states where municipal laws mandate the public publication of budgets and accounts, thereby enhancing transparency in governance.

A unique aspect of Kerala’s governance model is that Mayors are empowered to write the Annual Confidential Report (ACR) for the Commissioner (also known as the Secretary), which enhances accountability within the local government’s executive branch. Additionally, Kerala's municipal laws require every councillor to participate in at least one subject or standing committee, further underscoring the state’s commitment to participatory governance.

While Kerala has demonstrated strong performance in fiscal empowerment, the report identified areas for improvement, particularly in enhancing the autonomy of city administrations. Strengthening this aspect could further boost the effectiveness of urban governance in the state.

The average Urban Governance Index (UGI) score for the 28 states, 2 Union Territories, and the National Capital Territory of Delhi was 39.70%. Kerala emerged as the leader, surpassing its peers in urban governance. Other top-ranking states included Odisha, Maharashtra, Chhattisgarh, and Madhya Pradesh, while Nagaland, Manipur, Meghalaya, Chandigarh, and Punjab ranked at the bottom.