Local governments can significantly contribute to India’s economic development by delivering basic infrastructure and services — such as irrigation, roads, sanitation, education, and health care. They are in a better position to align local needs with development projects. It is thus no surprise that several developed and developing countries depend on local governments to provide basic services to their citizens. While India has been familiar with local governments since ancient times, this system was disturbed during the British period. It was revitalised after Independence, and the Constitution was amended in the early 1990s to empower the third tier of government.

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