Federalism and democratic decentralisation are closely connected features of India’s democratic system. Federalism refers to the constitutional distribution of powers between the Union and the States, while democratic decentralisation involves transferring political, administrative and financial powers from higher levels of government to elected local institutions. In India, decentralisation extends the federal principle to the grassroots by enabling people to participate directly in governance through Panchayati Raj Institutions and Urban Local Bodies. The Constitution originally established a two-tier federal structure consisting of the Union and State governments. The 73rd and 74th Constitutional Amendments of 1992 strengthened this arrangement by providing constitutional status to rural and urban local governments. The Eleventh and Twelfth Schedules identified subjects that could be entrusted to Panchayats and Municipalities. Gram Sabhas, regular local elections, reservations for Scheduled Castes, Scheduled Tribes and women, and State Election Commissions were introduced to deepen democratic participation. Thus, decentralisation seeks to make federal democracy more participatory, responsive and accountable. Democratic decentralisation also strengthens federalism by creating multiple centres of political authority. Local institutions can identify local needs and implement development programmes according to regional circumstances. Panchayats and municipalities provide opportunities for citizens, particularly women and disadvantaged communities, to participate in decision-making. In this sense, decentralisation promotes inclusive development and makes democracy meaningful beyond elections at the Union and