Gram panchayats form the third tier of government in India. The 73rd Constitutional Amendment of 1992 gave these bodies authority over 29 subjects, including agriculture, water management, education, and health. The amendment aimed to decentralise power and promote inclusive, participatory development by creating institutions of local self-government at the grassroots level.
Thirty years on, has the amendment’s promise been fulfilled? Can panchayats exercise the authority granted to them? Where have they succeeded, and what barriers hold them back?
Evidence from across India shows that some panchayats have translated constitutional authority into measurable results on the ground. These achievements demonstrate what becomes possible when panchayats receive genuine authority, adequate resources, and community support. Building on this contrast between constitutional promise and lived practice, this article examines four critical questions about India’s panchayati raj system.
Are panchayats living up to their constitutional mandate?
The Panchayat Devolution Index 2024 provides an assessment on how well states transfer power to local governments. The index draws from a study commissioned by the Ministry of Panchayati Raj, where researchers collected data through detailed questionnaires sent to all state governments, and verified responses through field visits to ensure accuracy. The index assesses state performance across six dimensions: frameworks, functions, finances, functionaries, capacity enhancement, and accountability. Each dimension examines whether panchayats can function as genuine institutions of self-government.
The framework dimension measures whether states meet basic legal requirements. This includes holding regular elections, reserving seats for women and marginalised communities, and establishing State Election Commissions and District Planning Committees. States receive scores on a scale of zero to 100 for each dimension. The national average stands at 54.3, which suggests that many states struggle even with these foundational requirements. Without the establishment of frameworks, panchayats cannot begin to exercise their constitutional powers.
The functions dimension reveals the widest gap between mandate and reality. This dimension evaluates what panchayats actually control, including their role in implementing schemes such as MGNREGS, Sarva Shiksha Abhiyan, and the National Health Mission. Here, the national average sits at just 29.18—the lowest across all dimensions. This indicates that states have not transferred genuine decision-making authority to panchayats. In many areas, parallel bodies operate in subjects meant for panchayats, and these bodies divert both funds and authority.
Panchayats need more than buildings and training programmes; they need control over the 29 subjects assigned to them by the Constitution.
Financial devolution remains incomplete across most states. This dimension examines whether states release Finance Commission grants on time, whether State Finance Commissions function properly, and whether panchayats have budget autonomy. The national average stands at 37.04. Many states delay fund releases or attach conditions to grants, which restricts what panchayats can do with the money they receive. Without financial autonomy, panchayats cannot plan or implement programmes effectively.
Infrastructure and staffing present a mixed picture. The national average stands at 50.92, up from 39.6 in 2013–14. Yet some states still report zero internet connectivity in their panchayats, which makes it difficult for elected representatives to access government portals or coordinate with block and district officials. While infrastructure is a necessary condition for functioning, it cannot be a substitute for authority.
The index reveals a clear pattern. States have created legal frameworks and built some infrastructure, but they hesitate to transfer real authority to panchayats. Panchayats need more than buildings and training programmes; they need control over the 29 subjects assigned to them by the Constitution.
Why aren’t panchayats working as effectively as they should?
Panchayats face capacity and resource gaps that limit their performance. Most panchayats lack full-time staff and struggle with technology requirements like GIS mapping for MGNREGA projects. Elected representatives often need training on technical aspects like water management, while women representatives face additional challenges with digital literacy and access to mobile phones. Without proper training and resources, elected representatives cannot perform their roles effectively.
Financial constraints further limit autonomy. States frequently delay fund releases and parallel bodies divert resources meant for panchayats. Some states like Gujarat do not pay honorariums to elected members, which makes participation difficult for those from economically weaker sections. Panchayats cannot plan programmes when they do not know when or if funds for said programmes will arrive.
Although panchayats hold custodianship of common lands, limited access to land records prevents them from stopping encroachment.
Data gaps create additional problems for effective governance. Although panchayats hold custodianship of common lands, limited access to land records prevents them from stopping encroachment, and the absence of asset registers and land audits hampers resource management. In Kalahandi, Odisha, gram sabhas showed what panchayats can achieve when they find ways around these constraints. Community members used mobile phones to conduct GPS mapping of forest boundaries, walking 13–15 kilometres over hills to record boundary points. This independent mapping helped them claim rights over traditional forest lands. However, without official support and training, such efforts remain limited.
Systemic issues complicate governance further. Government departments work in silos, and health and education services run through parallel structures. In Kasganj district, Uttar Pradesh, many gram panchayats remained inactive until a pilot initiative revealed that they could facilitate health camps and support disability registration. At the same time, the persistence of proxy leadership, where male relatives exercise authority on behalf of elected women, undermines both accountability and representation.
What can panchayats achieve when empowered?
Case studies from across the country reveal that panchayats perform more effectively when backed by adequate resources and supportive policy frameworks. In southern Chhattisgarh, panchayats and women’s collectives partnered to strengthen water security, and women’s self-help groups assessed water needs and usage across 200 villages. Transform Rural India and the Hindustan Unilever Foundation provided capacity building and technical support, enabling the groups to develop more than 9,000 water security plans with gram panchayats. This is extremely beneficial for the region, given it experiences drought-like conditions for most of the year, despite heavy rainfall during monsoons.
When panchayat members understand their mandate, they can also contribute meaningfully to public health and disability inclusion. Thirty gram panchayats in Kasganj, took the lead in addressing preventable blindness and social exclusion. The panchayats organised camps that provided eye screenings and cataract surgeries, restoring sight for many residents. They also helped people with disabilities register for social security schemes and obtain Unique Disability Identity Cards, which many lacked due to missing documentation. The UDID process itself presents barriers where applicants must often appear before medical boards, undergo repeated tests, and navigate bureaucratic hurdles even when they already hold disability certificates. Only 28.8 percent of those with disabilities have obtained certificates, with rural areas facing particularly acute challenges.
The pilot project trained gram panchayat members on their role in disability and social inclusion, which increased community momentum around identifying people with disabilities who had been living in isolation.
Mental healthcare integration in Kerala further reveals how panchayats can extend services to underserved populations.
Panchayats also serve critical roles in local dispute resolution and justice delivery. In Bihar, gram kachcheris, which are village courts established under the Bihar Panchayati Raj Act, handle cases ranging from land disputes and trespassing to family feuds and non-payment of loans. Between 2021 and 2023, these 8,057 courts disposed of 87 percent of the more than 1,43,000 cases filed before them. These courts provide accessible, low-cost justice at the village level, particularly to those who find it difficult to access district courts.
Mental healthcare integration in Kerala further reveals how panchayats can extend services to underserved populations. A nonprofit worked with panchayats in Kerala to integrate mental health services into palliative care units at the primary level. The programme leveraged existing resources such as nurses, ASHA workers, and primary health centre staff already working in palliative care units. Panchayats provided small spaces in PHCs or panchayat offices and support for medications. This approach reduced financial risk and improved sustainability.
What does it take to build strong panchayats?
Capacity building forms the foundation for panchayat effectiveness. Panchayat representatives and functionaries need training on technical aspects of their work, from understanding watersheds to using government portals. In the Chhattisgarh water security programme, training covered GIS technology and helped frontline workers understand technical aspects of water management. However, training alone does not suffice. Elected representatives need ongoing support and accessible information systems.
States must release funds on time without conditions and ensure that government programmes flow through panchayats.
Community partnerships further strengthen panchayat programmes and ensure local ownership. Self-help groups (SHGs) provide accessible platforms for participation, particularly for women. Successful partnerships treat panchayats as equal collaborators rather than mere implementers. For example, the Gram Panchayat Coordination Committee in Chhattisgarh brought together community members through SHGs, panchayat members, and local functionaries, which enabled convergence between programmes.
Panchayats are able to deliver more effectively when there is a genuine transfer of authority. States must release funds on time without conditions and ensure that government programmes flow through panchayats rather than parallel bodies. The Panchayat Devolution Index shows that states score lowest on the functions dimension because they hesitate to transfer real decision-making power. In successful cases like Kasganj, panchayats received clear mandates and support to work on health and disability inclusion. Without genuine devolution, capacity building and partnerships cannot translate into effective governance.
Moving beyond frameworks to real devolution
Three decades after the 73rd Amendment, panchayats need what the Constitution promised them: power to plan, authority to implement, resources to deliver, and accountability to their communities. The question is not whether panchayats can govern effectively, but whether states will let them.
States have created frameworks and built infrastructure, but they hesitate to transfer genuine authority. Yet success stories from Chhattisgarh, Uttar Pradesh, and Kerala demonstrate what becomes possible when panchayats receive real support. Water security plans, health camps, mental healthcare services—these achievements share common elements: capacity building, community partnerships, and genuine transfer of authority.
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Know more
- Read this article on the importance of according panchayats their rightful place in local development.
- Learn more about how the promise of local self-governmenance has evolved.
