Why India Needs Its Own DOGE?  Introduction 

• Prime Minister Narendra Modi’s recent visit to Washington, where he met Elon Musk, has ignited discussions about how India can modernize its governance by adopting innovative models like the United States’ Department of Government Efficiency (DOGE). 
• DOGE focuses on minimizing waste, streamlining bureaucracy, and improving overall government efficiency. This model can be a significant catalyst for India in realizing the vision of “Minimum Government, Maximum Governance.” 

Why DOGE Is the Right Fit for India? 

• Redundant and Overlapping Ministries: India is home to many ministries and departments that often overlap in their functions. For instance, the Ministry of Agriculture and Farmers Welfare overlaps with the Department of Animal Husbandry and Dairying. Furthermore, ministries such as the Ministry of Information and Broadcasting, which was originally designed to control the media, have become outdated in today’s dynamic media environment. Streamlining these functions can help eliminate redundancies and optimize government spending.

• Bureaucratic Inefficiencies: India’s bureaucratic structure remains bogged down by inefficiencies inherited from its socialist-era governance model. This results in excessive staff for tasks that could be handled by fewer individuals, leading to underperformance and delays in governance. As noted in a 2018 report by the National Institute of Public Finance and Policy (NIPFP), the government employs more than 50 lakh people across ministries, many of whom are underutilized. In several cases, 10 employees perform tasks that could be handled by one, wasting taxpayer money and resources. Bureaucratic inefficiency contributes to long delays in project implementation, exacerbating issues like corruption and sluggish service delivery. 

• • The construction of the Delhi-Meerut Expressway, a key infrastructure project, was delayed for over five years due to bureaucratic hurdles and the inefficiency of various departments involved in land acquisition and environmental clearances. 

• Overburdened Government System: India’s government employs a staggering 48.47 lakh employees and supports 67.95 lakh pensioners, which represents a significant portion of the country’s budget. According to the Ministry of Finance, nearly 30% of India’s total expenditure is directed toward paying government employees and pensioners, leaving limited fiscal space for crucial sectors like healthcare, infrastructure, and education. The underutilization of government employees, with many positions redundant or duplicative, hinders India’s ability to operate efficiently.  

• Outdated Colonial Positions: The continued presence of outdated colonial-era positions, such as district collectors, impedes the efficient administration of local governance. For example, a report by the Ministry of Rural Development highlighted how outdated roles in local governance often impede the development of villages, particularly in the implementation of rural welfare schemes. In places like Bihar and Uttar Pradesh, the role of district collectors still heavily influences local decision-making, despite the absence of tools that could aid in better management and decision-making. Streamlining these roles through DOGE, which incorporates modern governance tools and technology, could facilitate more effective local governance, enhancing local development programs and policy implementation. 

• Delayed Reforms and Citizen Discontent: Bureaucratic bottlenecks often delay the implementation of key reforms, such as labor laws and land acquisition. Furthermore, citizens face long wait times when accessing basic government services, fostering a trust deficit between the public and the government. According to the Centre for the Study of Developing Societies (CSDS), a significant portion of India’s urban population feels disillusioned by the slow pace of governance and the lack of visible reforms. 

• Economic Losses Due to Inefficiency: The inefficiencies in public service delivery come with a substantial cost. According to the McKinsey Global Institute (2021), India loses 3% of its GDP annually due to these inefficiencies. For example, delays in land acquisition for infrastructure projects have led to the loss of over Rs 1.5 lakh crore in potential economic output in sectors like manufacturing and real estate, as reported by the Economic Survey of India (2019).

Benefits of DOGE for India

• Optimized Government Spending: India could greatly benefit from DOGE’s approach to rationalizing government expenditure. By eliminating redundant positions and consolidating overlapping ministries, resources can be freed up to prioritize high-impact sectors such as infrastructure, healthcare, and education. For example, the government could redirect savings from a streamlined Ministry of Agriculture by consolidating its functions with the Department of Animal Husbandry and Dairying. This could help fund critical infrastructure projects like rural roads, bridges, and healthcare initiatives aimed at improving public health, ultimately fostering long-term national development.

• • Fiscal Responsibility: The implementation of DOGE could vastly improve fiscal discipline by curbing unnecessary government spending. India has been grappling with fiscal deficits and public debt, with India’s Fiscal Deficit at 9.2% of GDP in 2020-21 due to the COVID-19 pandemic’s impact. With overstaffed ministries and redundant bureaucratic structures, India’s government expenditure remains high, limiting the funds available for public welfare. By optimizing the size of the government, DOGE would enable the redirection of savings into high-priority areas. 

• Improved Governance Efficiency: One of the most significant advantages of adopting DOGE is the improvement in government efficiency. India’s bureaucratic setup remains mired in inefficiencies that slow down service delivery and contribute to corruption. For example, the World Bank’s Doing Business 2020 report highlighted that India ranks 63rd globally, primarily due to delays in procedures related to business licenses, land registration, and infrastructure projects. By streamlining bureaucratic processes and reducing redundancies, DOGE can enhance service delivery and speed up decision-making. 

• Promotion of Private Sector Growth:  Reducing bureaucratic red tape through the adoption of DOGE could attract more foreign investment into India, thereby promoting private sector growth. India’s cumbersome regulatory environment has long been a deterrent to foreign investors. In fact, a report by the International Finance Corporation (IFC) found that cumbersome regulations, including delays in obtaining permits and approvals, cost businesses in India an estimated $10 billion annually.
  • By cutting down on unnecessary regulations, streamlining approval processes, and enhancing transparency, India could create a more conducive environment for both domestic and foreign businesses. 
  • For instance, initiatives like the “Ease of Doing Business” reforms in Gujarat and Andhra Pradesh have led to a significant increase in private sector investments and job creation. 
  • With fewer regulatory hurdles, India could attract investments in key industries, such as manufacturing, technology, and renewable energy, boosting job creation and overall economic development.
• Boosting India’s Global Competitiveness: A more streamlined and efficient government would directly enhance India’s global competitiveness. With reduced inefficiencies, India’s rankings in global indices like the World Bank’s Ease of Doing Business and the Global Competitiveness Index would improve. In 2019, India improved its ranking in the Ease of Doing Business from 130th to 63rd, reflecting the positive impact of government reforms aimed at reducing bureaucratic delays.
  • Moreover, efficient governance can enhance India’s attractiveness as a destination for foreign direct investment (FDI). 
  • A report by the United Nations Conference on Trade and Development (UNCTAD) showed that FDI inflows into India surged to $81.7 billion in 2020, a growth of 27% from 2019. 
  • With the continued streamlining of government processes, India can expect further improvements in global competitiveness, enabling it to better compete with countries like China and Vietnam in attracting global investments.
• Strengthening Citizen Trust: Adopting a more efficient governance model through DOGE would significantly strengthen citizen trust in the government. Citizens are often frustrated with the slow and ineffective delivery of public services. For instance, India ranks 70th in the Global Trust Index (Edelman Trust Barometer), indicating that there is a notable trust deficit between the government and its people. However, the situation is slowly improving in states that have undertaken governance reforms.
  • For example, Gujarat’s adoption of technology in service delivery, such as the e-district project for citizen services, has led to faster processing times and greater public satisfaction. 
  • Similarly, the implementation of digital platforms for public grievance redressal systems has improved government transparency and accountability.

Challenges for DOGE in India

• Unemployment Concerns: Government jobs in India are viewed as the most stable and prestigious career option, especially in rural areas where private-sector opportunities are limited. According to the Ministry of Labour and Employment, there were 3.5 crore government employees in India as of 2020. Downsizing this massive workforce under the DOGE framework could lead to widespread unemployment, potentially sparking social unrest.

• • • For instance, the opposition to labor reforms in 2015, which proposed reducing job security in public-sector undertakings, also highlights the sensitivity of the issue. To prevent unrest, the government would need to manage the transition carefully by offering retraining programs and alternative employment opportunities for those affected.

• Bureaucratic Resistance: The Indian bureaucracy is deeply entrenched and wields significant power in decision-making. Bureaucratic resistance could become a significant roadblock in implementing DOGE, particularly since the Indian civil services system, governed by the All India Services Act, is a powerful institution.

• • • For instance, the resistance to the merger of the Planning Commission and the creation of NITI Aayog in 2015 faced significant pushback from some senior bureaucrats who were unwilling to relinquish control. These instances demonstrate how resistance from the bureaucracy could hamper the success of DOGE.

• Fiscal Constraints in Certain States: Several Indian states, particularly Tamil Nadu and Karnataka, have historically faced challenges in maintaining fiscal discipline due to populist policies. In Tamil Nadu, for example, frequent electoral promises of freebie schemes, such as free electricity and other subsidies, have strained the state’s finances. As of 2020, Tamil Nadu’s fiscal deficit was 4.4% of its Gross State Domestic Product (GSDP), which is above the prescribed limit set by the Finance Commission. Similarly, Karnataka has faced fiscal stress due to populist measures, which can reduce the ability of these states to support large-scale government downsizing efforts.

•  Implementation Roadblocks: India’s bureaucratic system is highly complex and fragmented, with numerous ministries, departments, and agencies that operate with different levels of autonomy. The sheer size and diversity of India’s governance system mean that implementing the DOGE model would require significant coordination across federal, state, and local governments. For instance, India has more than 50 central ministries and 28 states with their own sets of regulations, which creates significant challenges in standardizing and streamlining operations.

• • • A case in point is the rollout of Goods and Services Tax (GST) in 2017, which required coordination between the central and state governments. The GST implementation faced delays due to opposition from several states and bureaucratic delays in the central government. 

•  Public Perception: The public’s perception of DOGE reforms would be crucial to their success. If the reforms are perceived as being anti-employee, especially in a country where government jobs are seen as symbols of security and social status, it could lead to significant public resistance. In the past, public sector downsizing efforts have led to protests, particularly from unions representing government employees.

• • • For instance, the National Pension Scheme (NPS) implemented in 2004 faced protests from government employees who felt that their benefits were being reduced. Therefore, the government must communicate clearly that DOGE’s reforms are meant to increase efficiency and improve governance rather than undermine the well-being of public servants.

• Political Resistance: One of the most significant challenges to implementing the Department of Government Efficiency (DOGE) in India is political resistance. Politicians and bureaucrats, who benefit from the current system, will likely oppose any move to reduce government positions or close ministries. 

• • For example, in 2017, when the Indian government proposed the closure of some public sector enterprises as part of its “Make in India” initiative, it faced widespread opposition from state governments, especially in regions where these enterprises were major employers. 
  • In 2018, when the government attempted to merge several public sector banks, there was backlash from trade unions and political leaders concerned about the impact on jobs. This illustrates how political and bureaucratic interests could slow down or even halt the implementation of DOGE’s reforms.

Measures to Enhance Government Efficiency

• Performance-Based Monitoring: Key Performance Indicators (KPIs) should be introduced for all government employees to monitor performance in real time. Establishing a Public-Private Efficiency Task Force could help recommend and oversee necessary structural reforms, ensuring that civil servants are accountable for their performance.

• Optimizing Government Assets: India must focus on utilizing unused government assets for revenue generation. This could help ease fiscal constraints. Additionally, accelerating digitization and automation would reduce dependency on human resources, allowing the government to operate more efficiently and cost-effectively.

• Gradual Implementation of Reforms: The government should introduce a phased approach to downsizing and restructuring, allowing for smoother implementation. This should include retraining programs for government employees, ensuring that they are not left without alternative employment opportunities.

• Learning from Global Best Practices: India should take inspiration from countries like Denmark and South Korea, which have successfully reduced government expenditure while improving public services. By adopting similar strategies suited to India’s unique context, the country can avoid potential pitfalls and ensure a smooth transition.

• Creating a Department of Government Efficiency (IDOGE): India should establish an Indian Department of Government Efficiency (IDOGE), modeled after the U.S. Office of Management and Budget (OMB) and Singapore’s Public Service Division (PSD). IDOGE would audit, restructure, and streamline bureaucratic functions, ensuring better resource utilization and enhanced public service delivery.

• Merging Redundant Ministries: India’s bureaucratic structure must be reformed to merge overlapping ministries and departments. For example, ministries like Agriculture and Animal Husbandry should be combined to eliminate redundancies. Ministries such as Information and Broadcasting should be restructured or downsized, making them more relevant in the digital era.