Economic Unity 

India has a rich history of self-governance and local governments. Even as early as the Maurya period, Indian villages were administered by village councils. Later, during the freedom movement, the idea of self-governance and local government once again became very prominent. The idea of self-governance was upheld by Mahatma Gandhi. He promoted the idea of gram swaraj and was a key figure in establishing local governments in the rural areas of India. 

Types of local governments

The 73 and 74 amendments enable different states and union territories of India to form local governments essential for self-governance. India itself is a federal republic and broadly has three types of government: central, state, and local. After the 74th amendment was enacted, urban bodies such as municipal corporations and municipalities were given considerable authority and financial power for the administration of urban areas. There are three types of municipalities or urban bodies (also known by their abbreviated form, MC). These three classifications of municipalities are:

1) Municipal corporations (also known as Nagar Nigam), 2) Municipal Councils (also known as Nagar Palika), and 3) Municipal Committees (also known as Town Councils or Nagar Panchayat). The municipal corporations are established for the cities whose populations exceed one million. Municipal councils control cities with more than 25,000 but less than one million people. The municipal committee is in charge of the notified areas or towns with a population of more than 10,000 but less than 25,000 people. The rural areas are mainly administered by village panchayats, and there are three types of local government in rural areas. The first tier of local government is known as the gramme panchayat, which works at the village level. The next level is Panchayat Samiti, which works at the block level for community development. The last tier of the local government in the rural area is the Zila Parishad, which works at the district level. Every three-tiered panchayat system is actually an elected body, and every four years, the residents of the rural areas elect representatives for these three bodies. As mentioned earlier, the concept of Gram Panchayat was promoted by Mahatma Gandhi, and so the modern framework of Gram Panchayat is highly influenced by Gandhian ideology. One of the main goals of establishing such local bodies was to encourage more participation from the rural population, which was expected to lead to more representation and, ultimately, upliftment of the rural society’s marginalised segment. It was also aimed at better implementation of several development policies and spreading awareness about them. Different initiatives were taken to spread awareness about the government’s welfare policies and the individual rights of the villagers. The local governments aimed at decentralisation of power, and it helped with the better and more effective implementation of government policies. Though the initial aim was to form one gramme panchayat for each village and a tehsil or district council at the district level. Though this aim was not achieved till the end of 2015, Also, the eleventh schedule of the Indian Constitution lists some important subjects that aim towards the socio-economic development of society. 

Socio-economic Development

The local government contributes a lot towards social, economic, and community development. For example, the Gram Panchayat has played a very important role in rural employment and the overall socio-economic development of the rural area. The Gram Panchayats also play a crucial role in promoting cottage industry and improving the socio-economic scenario of the rural area. The Gram Panchayats provide funds to the women of villages to form self-help groups and also provide loans with low interest rates for these women’s financial autonomy. The municipal corporations also provide employment opportunities to the youth and provide loans with low interest rates to the slum dwellers.

Fire Service 

Fire service is another important service that is provided by municipal corporations. Generally, every municipal area has its own fire station that provides emergency services in case of a disaster. Municipal corporations make adequate arrangements for fire service as it is considered an essential service. 

Conclusion 

India has a rich history of local governments, self-governance, and the decentralisation of power. Indian villages always have some degree of autonomy over their administration. Gram Panchayats were established with the aim of the upliftment of poor people and to invite better representation of people. It also largely contributed towards the socio-economic development of society.