| Abstract: | Decentralization and grassroots democracy constitute the cornerstone of participatory governance in India. The 73rd and 74th Constitutional Amendments institutionalized local self-government with the aim of empowering citizens and strengthening democratic decision-making at the grassroots level. In Manipur, the Greater Imphal region provides a distinctive context for examining decentralization as it encompasses both urban and rural administrative systems—the Imphal Municipal Corporation and Municipal Councils on one side, and the Gram Panchayats and Zilla Parishads on the other. This study investigates the functioning, challenges, and effectiveness of these institutions in realizing the objectives of local self-governance. Using a mixed-method approach that combines qualitative and quantitative techniques, data were collected through interviews, questionnaires, and official documents to evaluate administrative autonomy, fiscal empowerment, citizen participation, and accountability. The findings indicate that decentralization in Greater Imphal remains largely structural rather than substantive. While rural institutions exhibit stronger community participation, urban local bodies display greater bureaucratic influence but weaker financial independence. Persistent issues such as inadequate coordination, limited fiscal devolution, and insufficient capacity-building for elected representatives continue to impede effective governance. The study recommends enhancing financial devolution, fostering institutional coordination between Panchayats and Municipal Councils, and strengthening citizen engagement through digital platforms and training initiatives. Reinforcing local self-government in Manipur is essential to achieving inclusive, accountable, and participatory democracy. |