Municipalities in India are local government institutions that function at the urban level and are primarily responsible for planning, administration, and delivery of public services within cities and towns. They are a critical part of the decentralized governance framework established under the 74th Constitutional Amendment Act, 1992, which aimed to strengthen local self-governance and empower urban local bodies (ULBs) to function as effective units of public administration. Municipalities are classified into three categories based on the size and population of the urban area: Municipal Corporations for large cities, Municipal Councils for smaller towns, and Nagar Panchayats for areas in transition from rural to urban. Their responsibilities encompass a wide range of functions, including urban planning, regulation of land use, water supply, sanitation, solid waste management, urban poverty alleviation, public health, street lighting, maintenance of public spaces, and social welfare services. In theory, municipalities are meant to serve as the closest layer of government to the urban population, ensuring that citizens’ needs are addressed efficiently through participatory governance and accountability mechanisms. The working of municipalities in India, however, reflects a mix of achievements and challenges. On the positive side, municipalities have played a key role in improving basic urban infrastructure and services. Various initiatives under national missions such as the Smart Cities Mission, Atal Mission for Rejuvenation and Urban Transformation (AMRUT), and Swachh Bharat Mission have provided municipalities with both financial resources and technical support to improve urban service delivery. In cities like Pune, Surat, and Bangalore, municipal efforts in solid waste management, urban mobility, and e-governance initiatives have shown measurable improvements, indicating that effective municipal functioning is possible with adequate autonomy and capacity. Moreover, municipalities have become platforms for citizen participation through ward committees, public hearings, and participatory budgeting exercises in some regions. These efforts highlight the importance of local governance in implementing public policies in a manner that aligns with the specific needs of urban populations. Despite these positive developments, municipalities in India face several persistent challenges that undermine their effectiveness. One of the most significant issues is financial weakness. Municipalities often depend heavily on grants and transfers from state governments rather than generating their own revenue through local taxation. Property tax, user charges, and fees constitute the core of their own-source revenue, but weak assessment mechanisms, poor collection efficiency, and political reluctance to increase rates limit their financial autonomy. This