Section Article

PANCHAYATI RAJ AND DECENTRALIZED GOVERNANCE: LESSONS FROM INDIAN STATES
Author(s): Chetan Kumar

Abstract
Decentralized governance has long been recognized as a cornerstone of participatory democracy and in India the Panchayati Raj system represents one of the most significant experiments in empowering local institutions. As India approached 2025 the relevance and effectiveness of Panchayati Raj Institutions (PRIs) became increasingly important for addressing grassroots development challenges improving service delivery enabling inclusive political participation and strengthening rural governance. The 73rd Constitutional Amendment provided a constitutional framework for decentralization mandating the creation of elected local bodies devolution of powers regular elections reservation for women and marginalized groups and financial autonomy. However the performance of PRIs varies widely among Indian states shaped by socio-economic conditions political will administrative capacity fiscal resources leadership patterns and state-level governance reforms. This paper examines the evolution of Panchayati Raj and decentralized governance in India evaluating the success stories and challenges emerging from different states. Through a detailed analysis of institutional structures political participation fiscal devolution social inclusion and local empowerment the study highlights both the strengths and limitations of decentralized governance. Drawing insights from high-performing states as well as regions facing structural constraints the paper argues that Panchayati Raj has immense potential to transform rural administration when empowered with adequate authority financial support and community participation. Lessons from Indian states demonstrate that decentralization works best when accompanied by transparency accountability capacity-building gender inclusion and robust grassroots planning processes.