Step 1: Background.
The idea of Panchayati Raj originates from ancient village panchayats and was recommended by the Balwant Rai Mehta Committee (1957) after independence. It was given constitutional status through the 73rd Amendment (1992).
Step 2: Structure.
\begin{itemize}
\item Gram Panchayat – village level.
\item Panchayat Samiti – block/intermediate level.
\item Zila Parishad – district level.
\end{itemize}
Step 3: Features of the 73rd Amendment.
\begin{itemize}
\item Constitutional recognition of Panchayati Raj as the third tier of governance.
\item 29 subjects listed in the Eleventh Schedule for local governance.
\item Direct elections for representatives.
\item Reservation for Scheduled Castes, Scheduled Tribes, and women (1/3rd of seats).
\item State Finance Commissions to allocate funds.
\end{itemize}
Step 4: Role and significance.
\begin{itemize}
\item Decentralization of power and democratic participation at the grassroots.
\item Improved delivery of services like water, sanitation, education, health.
\item Women's empowerment through reserved seats.
\item Strengthening rural development and accountability.
\end{itemize}
Step 5: Challenges.
\begin{itemize}
\item Lack of financial autonomy; dependence on state/central grants.
\item Dominance of local elites; persistence of caste and gender inequalities.
\item Weak capacity and training of elected representatives.
\end{itemize}
Step 6: Conclusion.
Despite challenges, Panchayati Raj is a milestone in participatory democracy, giving power to the people at the village level and promoting inclusive governance.
Final Answer: \[ \boxed{\text{Panchayati Raj = three-tier rural self-government, empowering villages through decentralization.}} \]
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