| Abstract: | The Panchayati Raj system constitutes the cornerstone of democratic decentralization in India, providing an institutional framework for grassroots participation in governance and rural development. Rooted in India’s ancient traditions of village self-governance, Panchayati Raj has undergone a long process of historical evolution shaped by colonial interventions, post-independence experiments, and constitutional reforms. The enactment of the 73rd Constitutional Amendment Act, 1992 marked a watershed moment by granting constitutional status to Panchayati Raj Institutions (PRIs), thereby transforming them into integral components of India’s democratic polity. This research paper critically examines the evolution, structure, and functioning of the Panchayati Raj system in India, with a special focus on the state of Telangana. It analyses the conceptual foundations, historical development, constitutional framework, and institutional design of Panchayati Raj, while systematically assessing contemporary issues and challenges such as fiscal dependence, administrative inefficiencies, political and bureaucratic control, and uneven devolution of powers, social inequalities, and delays in electoral processes. |