The Panchayat Raj System provides the administrative apparatus for implementation of the programmes of rural development. These institutions are established in India as vehicles of socio-economic transformation in rural India. The British rule in India paved the way for the development of local-self government bodies in urban and rural areas. A new age of participatory governance and development was heralded in India in 1958 after the implementation of Panchayat Raj System. The 73^rd amendment contains provision for devolution of powers and responsibilities to the panchayats to collect revenues, design development plans and implement various grassroots level development programmes in India. The Constitutional status is given to Panchayati Raj System by the Government of India. These bodies are permitted to launch many schemes and programme to improve the infrastructure, facilitate implementation of development programmes and improve the standard of living of people in the rural and tribal areas. The Millennium Development Goals emphasize the environmental sustainability and inclusive development of the marginalized sections of society. The effective involvement of the Panchayat Raj Institutions in the process of rural development is constrained by some difficulties facing these institutions. The social responsibility of Panchayati Raj Institutions, public and private organizations assumes profound significance from grassroots development point of view.

KEYWORDS: Panchayat Raj, rural development, Rigveda, Gram Swaraj, tradition, culture