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Critical Topics and Their Significance for the UPSC CSE Examination on April 24, 2025

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Role of Panchayati Raj in strengthening local governance

For Preliminary Examination:  Panchayat Raj Institutions

For Mains Examination: GS II - Indian Polity & Governance

Context:

Recognising the significant role of panchayats in local governance, the government on April 9 launched the Panchayat Advancement Index (PAI) – “a key metric for assessing progress at the grassroots level and aiding in the formulation of localised strategies and targets for inclusive rural development”

Read about:

73rd and 74th Constitutional Amendments 

Panchayati Raj Institutions

Key takeaways:

• Panchayati Raj Institutions (PRIs) play a pivotal role in promoting grassroots democracy and decentralised governance across rural India. These bodies, which represent the foundation of local self-governance, were formally recognised and empowered through the 73rd and 74th Constitutional Amendments in 1992, granting constitutional status to panchayats in rural areas and municipalities in urban regions. However, the concept of local governance in India is not new—it has deep roots in the country's ancient traditions, with references found in the Vedas, Kautilya’s Arthashastra, the Mauryan period, and other historical texts.
• Throughout India’s history, especially before and after gaining independence, the Panchayati Raj system has seen various transformations. During British rule, decentralisation efforts began with Lord Mayo’s 1870 resolution, which supported devolving financial and administrative powers to local levels for village and town development.
• This was further advanced by Lord Ripon in 1882, whose reforms laid the groundwork for local self-government by suggesting that smaller administrative units be managed by local boards.
• The Royal Commission on Decentralisation in 1909, led by Sir Henry William, evaluated the operations of these boards and highlighted major shortcomings like limited representation and insufficient authority.
• The commission’s recommendations eventually influenced the Government of India Act of 1919. Post-independence, there was a renewed focus on decentralised governance to strengthen local self-rule. On November 25, 1948, K. Santhanam, a Gandhian and a member of the Constituent Assembly, urged the Drafting Committee’s Chairman to incorporate provisions that supported this vision.
• Consequently, the Indian Constitution included Article 40 under the Directive Principles of State Policy in Part IV. This article directs the state to facilitate the establishment of village panchayats and to empower them appropriately so that they may function as effective units of self-governance
• The Community Development Programme, launched during India's First Five-Year Plan (1951–55), served as an early foundation for the later establishment of Panchayati Raj Institutions.
• In the years following independence, the country confronted multiple socio-economic issues such as food shortages, widespread poverty, and high unemployment. This programme was introduced as a strategy to promote rural development by encouraging active participation from all sections of rural society.
• Even before this initiative, India had experimented with several rural development efforts. Noteworthy examples include the Sriniketan Institute of Rural Reconstruction started by Rabindranath Tagore in 1922, Dr. Spencer Hatch’s Marthandam Project conducted through the YMCA in Kanyakumari, Tamil Nadu, and the Firka Development Scheme introduced by T. P