Sun Feb 16 19:29:00 UTC 2025: ## Panchayati Raj System in India: A System in Distress

**New Delhi, Feb 17, 2025** – A new analysis in *The Hindu* reveals a concerning stagnation in India’s Panchayati Raj system, the landmark 1992 initiative aimed at decentralizing governance. Despite initial successes, including significant women’s participation in leadership, the system is facing a crisis, threatening the well-being of a substantial portion of the Indian population.

The article highlights several factors contributing to this decline. These include reduced public participation, overreliance on centrally sponsored schemes, increasing politicization, and a plateauing of administrative decentralization. A critical issue is the dwindling fiscal autonomy of panchayats, with a decrease in untied grants and an increasing reliance on centrally-controlled, tied grants. This shift, coupled with the government’s emphasis on direct cash transfers through the JAM platform, has marginalized the role of panchayats as intermediaries and reduced local accountability.

Rapid urbanization is another significant factor. The shift in policy focus towards urban areas has left rural governance comparatively neglected, despite the fact that a significant portion of the population (approximately 60%) still resides in rural areas and depends on agriculture.

The author, Suvojit Chattopadhyay, argues that viewing panchayats solely as instruments for last-mile delivery of social schemes is counterproductive. He advocates for a renewed vision that empowers panchayats to take on crucial roles in water conservation, renewable energy generation, disaster management, and bridging the rural-urban divide. He emphasizes the need for increased citizen engagement and the utilization of technology to strengthen local governance. Chattopadhyay concludes that reviving the Panchayati Raj system is essential for the well-being of rural India and requires a fundamental shift in perspective and policy.

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