Law and statutory body
73rd Constitutional Amendment and Panchayat Advancement Index
GS2 Polity and governancePrelims and Mains
- Why in news
- On 24 April 2026, National Panchayati Raj Day, the Ministry of Panchayati Raj released the Panchayat Advancement Index (PAI) 2.0 Report for FY 2023-24. The release was published on 29 April 2026.
- What it is
- The Panchayat Advancement Index is a Ministry of Panchayati Raj tool that scores Gram Panchayats on development outcomes. It is built around the Localization of Sustainable Development Goals (LSDGs). Panchayats are graded into five categories by composite score.
- Indicators
- PAI 2.0 uses 150 indicators and 230 data points, cut from 516 indicators and 794 data points in version 1.0.
- Themes
- Nine thematic areas under the LSDGs: Poverty, Health, Child Welfare, Water, Environment, Infrastructure, Social Justice, Good Governance and Women's Empowerment.
- Grades
- Achiever A+ (90 and above), Front Runner A (75 to below 90), Performer B (60 to below 75), Aspirant C (40 to below 60), Beginner D (below 40).
- Participation
- 97.30 per cent participation, with 2,59,867 Gram Panchayats submitting validated data, against 80.79 per cent in version 1.0.
- Publisher
- The index is run by the Ministry of Panchayati Raj, which released the report on National Panchayati Raj Day (24 April).
- Three tiers
- Gram, Block (intermediate) and District Panchayats form the three tiers.
- Gram Sabha
- It is the body of all registered voters in a village. It is not one of the three tiers. Its powers are fixed by the state legislature by law.
- Women's representation
- There are over 2.5 lakh Panchayats and about 24.04 lakh elected representatives, of whom about 49.75% are women.
- What the day marks
- 24 April commemorates the enactment of the 73rd Amendment, which gave constitutional status to PRIs.
- Release at the event
- The PAI-2.0 report and three books under 'Meri Panchayat Meri Dharohar' will be released.
- Gram Sabha meetings
- Gram Panchayats will hold Gram Sabha meetings on the day.
- Constitutional placement
- The Amendment inserted Part IX (Articles 243 to 243O) and the Eleventh Schedule, listing 29 subjects. It came into force on 24 April 1993.
Don’t confuse with PAI vs Panchayat Devolution Index: PAI scores panchayats on development outcomes; the Devolution Index ranks States on how far they have devolved powers to panchayats.
Don’t confuse with 73rd vs 74th Amendment: 73rd (Part IX, Eleventh Schedule) covers Panchayats; 74th (Part IXA, Twelfth Schedule) covers Municipalities.
Don’t confuse with PESA vs 73rd Amendment: The 73rd Amendment's Part IX does not apply to Fifth Schedule areas by default; PESA 1996 extends it with modifications.
Don’t confuse with Gram Sabha vs Gram Panchayat: The Gram Sabha is the body of all registered voters in a village. The Gram Panchayat is its elected executive body.
Laws, judgments and statutory bodies: 30 Prelims questions since 2013 (what the law says, who chairs, legal basis). In Mains, 44 news-triggered questions, most in GS2, asking for provisions and challenges.
Why it matters
- Gives each panchayat a report card for evidence-based planning and Gram Panchayat Development Plans.
- Links local governance to SDG localisation and allows benchmarking among panchayats.
- Gave local bodies constitutional protection, mandatory elections and a three-tier structure, deepening grassroots democracy.
- Reservation for women, SCs and STs has widened representation; women are about 49.75% of representatives.
- Constitutional status made regular elections, State Finance Commissions and reserved seats for SC/ST and women mandatory.
- Indices like PAI help track local development and support localisation of the SDGs.
Problems
- West Bengal did not onboard, and data quality depends on self-reported inputs.
- Many panchayats sit in the middle grades, and few reach A+ across themes.
- Devolution of funds, functions and functionaries (the 3Fs) depends on states and remains uneven.
- Weak capacity, dependence on grants, and proxy representation by relatives of women members.
- States devolve funds, functions and functionaries unevenly, so panchayats depend on grants.
- Weak capacity and proxy representation by relatives of elected women ('sarpanch-pati') limit effective self-government.
Way forward
- Use scores to target funds and capacity building at Aspirant and Beginner panchayats.
- Strengthen data validation and bring all States on board.
- Make states devolve all Eleventh Schedule subjects with matching funds and staff.
- Continue training, digital tools such as eGramSwaraj, and use PAI scores to guide support.
- Devolve activities along with money and staff, and strengthen State Finance Commissions and own-source revenue.
- Train elected representatives and use data tools like PAI to guide planning.
Put in your answer
73rd Amendment: It gave constitutional status to Panchayats through Part IX and the Eleventh Schedule.
SVAMITVA: Drone mapping of villages issues property cards to give legal ownership and reduce disputes.
Panchayat Advancement Index: The PAI is a Ministry of Panchayati Raj index to assess panchayat performance; the PAI-2.0 report is released on this day.
Constitutional provisions: Article 243D provides reservation of seats for SC/ST and not less than one-third for women in panchayats.
- 2018Mains GS2 · Q15Importance of Panchayat system as local government; non-government financing sources.
- 2015Mains GS2 · Q3Critically discuss Panchayats as mainly political, not effective governance instruments.
- 2022Mains GS2 · Q3Extent decentralisation has changed grassroots governance in India
- 2020Mains GS2 · Q13Critical challenges facing local institutions' functionality in recent times
- 2017Mains GS2 · Q1Critically examine local self-government effectiveness and suggest improvements
- 2005Prelims Q51Which statements on Part IX and Part IX A are correct?
- 1997Prelims Q20Which provision was NOT proposed by 73rd Amendment for Panchayati Raj
- 2000Prelims Q68What the 73rd Amendment Act aims to achieve
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Statement I and II
Ours, not from a UPSC paper
Consider the following two statements about the Panchayat Advancement Index (PAI) 2.0:
- Statement-I: Under PAI 2.0, a Gram Panchayat with a composite score of 80 is placed in the Front Runner category.
- Statement-II: PAI 2.0 uses more indicators than PAI version 1.0 to score Gram Panchayats.
Which one of the following is correct in respect of the above statements?
True or false?
1 of 10
Statements the way Prelims prints them. Say first, then see the fact.
1.The Panchayat Advancement Index is released by the Ministry of Panchayati Raj.
True. The Ministry of Panchayati Raj released PAI 2.0.
2.PAI 2.0 evaluates Gram Panchayats on nine thematic areas under the Localization of Sustainable Development Goals.
True. Nine themes aligned to the LSDGs.
3.PAI 2.0 uses more indicators than PAI version 1.0.
False. It cut indicators from 516 to 150.
4.The provisions on Panchayats are contained in Part IX of the Constitution.
True. Part IX deals with Panchayats.
5.The Gram Sabha is one of the three tiers of the Panchayati Raj system.
False. The Gram Sabha is the foundation but not one of the three tiers (Gram, Block, District).
6.The powers and functions of the Gram Sabha are fixed by the state legislature by law.
True. The state legislature fixes them.
7.The Balwant Rai Mehta Committee recommended a three-tier Panchayati Raj structure.
True. It recommended it in 1957.
8.Gujarat was the first state to implement the Panchayati Raj system, in 1959.
False. Rajasthan was the first state, in 1959.
9.The 73rd Amendment added the Eleventh Schedule to the Constitution, listing 29 subjects for Panchayats.
True. The Eleventh Schedule has 29 subjects.
10.The 73rd Amendment added Part IXA to the Constitution for Panchayats.
False. Part IX is for Panchayats; Part IXA (74th Amendment) is for Municipalities.
Written by us from the release, not by UPSC; checked by a second model.
Mains practice
15 marks · 250 words
National Panchayati Raj Day 2026 saw the launch of the Panchayat Advancement Index 2.0. In this context, examine the provisions of the 73rd Constitutional Amendment Act, 1992 and discuss the challenges that still limit the effectiveness of Panchayati Raj Institutions as units of local self-government.
Worth revising until Prelims 2027: most news questions come within two years of the event.