Governance, in fact, is a highly crucial issue not only for the developed countries, but also for the developing countries. It relates to decisions that define expectations, grant power, or verify performance. In the case of business or NGO’s it relates to consistent management, cohesive policies, processes and decision-rights for a given area of responsibility. In terms of government, governance is what a government does. It might be a geo-political government (nation-wide), a corporate government (business entity), a socio-political government (tribe, family, etc.), or any number of different kinds of government. But governance is the kinetic exercise of management power and policy, while government is the instrument (usually collective) that does it. The concept of governance is not new. It is as old as human civilisation. It falls within the domain of Welfare Economics, and most of the theories of Welfare Economics are highly useful for good governance.

Governance has various elements as given below:

In the case of India, governance is very poor in all its contexts. Apart from many other things, poor governance leads to political instability, which is reflected by a number of parameters like: