Content:

1. NITI Aayog launches the “Fiscal Health Index 2025” in New Delhi
2. India’s WASH Innovations Lead Global Discourse at World Economic Forum 2025

NITI Aayog launches the “Fiscal Health Index 2025” in New Delhi

Context: The Fiscal Health Index (FHI) 2025, launched by NITI Aayog, marks a significant milestone in assessing the fiscal health of Indian states. This is part of NITI Aayog’s effort to promote fiscal prudence, transparency, and sustainable economic growth at the sub-national level.

Relevance : GS 2(Governance )

Features of the FHI:

Purpose:

• The FHI aims to offer a data-driven, comprehensive assessment of the fiscal health of 18 major Indian states.

• It will serve as an annual report focusing on the fiscal status of states and help inform state-level policy interventions.

• The report also aims to improve fiscal governance, economic resilience, and national stability.

Key Sub-Indices: The FHI is based on five major sub-indices that determine the fiscal health of states:

• Quality of Expenditure: Examines how efficiently states are utilizing public funds.

• Revenue Mobilisation: Measures the state’s capacity to raise revenue through taxes and other means.

• Fiscal Prudence: Assesses the state’s ability to manage its financial resources responsibly.

• Debt Index: Measures the state’s overall debt position.

• Debt Sustainability: Evaluates the sustainability of the state’s debt over the long term.

Top Performers:

• Odisha leads the ranking with a score of 67.8, excelling in revenue mobilization and expenditure management.

• Chhattisgarh and Goa follow with scores of 55.2 and 53.6, respectively.

Observations:

• States like Jharkhand have shown improvement in fiscal prudence and debt sustainability.

• On the other hand, Karnataka has experienced a decline due to weaknesses in expenditure quality and debt management.

Policy Implications:

• The FHI will act as a tool for fiscal consolidation by promoting transparency and improved resource management.

• The report helps policymakers make informed decisions to strengthen fiscal resilience.

• It encourages states to align their fiscal strategies with national objectives and adopt best practices to contribute to India’s goal of becoming a “Viksit Bharat” by 2047.

Annual Publication:

• The FHI will be published annually, providing valuable data-driven insights into the fiscal health of Indian states.

• It is designed to assist policymakers by identifying areas requiring intervention and strategic planning to improve fiscal governance.

India’s WASH Innovations Lead Global Discourse at World Economic Forum 2025

Context:

• Event: India Pavilion at World Economic Forum (WEF) 2025, Davos.
• Key Theme: “India’s WASH Innovation: Driving Global Impact in Climate and Water Sustainability.”

The discussion at the India Pavilion emphasized India’s transformative achievements in the Water, Sanitation, and Hygiene (WASH) sector, showcasing innovations in water conservation, sanitation coverage, and equitable access to drinking water.

Relevance : GS 2(Health , Governance )

Highlights of the Session:

WASH Innovations and India’s Role:

• The session centered on India’s significant progress in the WASH sector, highlighting two flagship initiatives:

• Swachh Bharat Mission (SBM): Focused on sanitation, including toilet construction and the elimination of open defecation.

• Jal Jeevan Mission (JJM): Aimed at providing safe drinking water to rural households.

• These initiatives have been instrumental in improving sanitation coverage and water access, benefiting millions of rural households and positioning India as a global leader in these areas.

• Swachh Bharat Mission (SBM) and Jal Jeevan Mission (JJM) have led to transformative changes in rural India, improving sanitation coverage and ensuring safe drinking water.

• Under the Jal Jeevan Mission, the percentage of rural households with functional tap water connections increased from 17% in 2019 to 79.66% in 2025.

• Impact on Time Savings: Rural India has saved 55 million hours daily that were previously spent on fetching water, leading to increased workforce participation, especially among women.

Global Recognition of India’s Initiatives:

• The Swachh Bharat Mission and Jal Jeevan Mission have garnered global attention as successful models of large-scale, government-led initiatives for improving public health, sanitation, and water access.

• The WHO has credited India’s efforts in sanitation with having prevented the deaths of 300,000 children under the age of five due to improved hygiene and sanitation practices.

Challenges Addressed:

• Water Scarcity: India faces growing challenges of water scarcity, which is exacerbated by climate change, overpopulation, and unsustainable water use.

• Climate Resilience: India’s efforts in water conservation are aligned with global needs for climate resilience, especially in regions vulnerable to water scarcity and extreme weather events.

Panel Discussions:

• Water Panel: Focused on global water sustainability, featuring experts from NMCG, UNICEF, and WaterAid, discussing innovative strategies for advancing water management.

• Sanitation Panel: Highlighted global health innovations in sanitation, featuring experts from the Gates Foundation, Riseberg Ventures, and actor-advocate Vivek Oberoi, focusing on breakthroughs in sanitation technologies.

Major Achievements Highlighted:

• 95 Million Toilets Built: Under the Swachh Bharat Mission, over 95 million toilets were constructed, significantly improving sanitation and hygiene standards across the country.

• Household Tap Water Connections: The Jal Jeevan Mission reached millions of rural households, ensuring access to safe drinking water, and significantly improving the quality of life in rural communities.

India’s Global Leadership:

• India’s WASH innovations are being recognized as scalable models for other nations grappling with similar water and sanitation challenges.

• The nation’s emphasis on community engagement, behavioral change, and technology-driven solutions offers a framework for global collaboration in achieving the UNSDGs.

Collaborative Efforts for SDGs:

• The session highlighted the critical role of public-private partnerships in driving progress towards SDG 6 (Clean Water and Sanitation) and SDG 13 (Climate Action).

• It was emphasized that addressing the global water crisis and achieving climate resilience requires collective international action.

Conclusions and Global Commitments:

• The event concluded with actionable insights and commitments from various stakeholders, reinforcing India’s role in global climate action and sustainable development.

• India’s initiatives in water management and sanitation are aligned with global goals to combat climate change, enhance health outcomes, and improve economic development.

Significance:

• India’s leadership in WASH innovations offers valuable lessons for other countries facing water and sanitation challenges, particularly in developing regions.

• The Jal Jeevan Mission and Swachh Bharat Mission are not only addressing immediate needs but also contributing to long-term goals of climate resilience, sustainable development, and gender equality.

• The World Economic Forum 2025 served as an important platform to amplify India’s contributions to global water sustainability and climate action, encouraging international cooperation and the exchange of ideas.