Decentralisation: India's struggle with persistent challenges

To push the decentralisation project forward, the first step is to create and distribute information on the activities and finances of local bodies

The latest census, conducted in 2011, suggests that 68.8 per cent of India’s population lives in rural areas, while the rest reside in urban settlements. The increase in per capita income, along with a changing composition of economic activity in the country, indicates that the share of the urban population is expected to rise to about 50 per cent by 2045. Commitments to sustainable development goals, alongside a steadily growing population, imply the need for creating adequate fiscal space to address these requirements.

Local bodies, both rural and urban, are expected to play a significant role in effective service delivery,