The term ‘Panchayat’ truly implies council of five. The standard of the Panchayat is ‘Panch Parameshwar’ which implies God talking through the five. The National Planning Commission appeared in March 1950 with the object of building up a Welfare State through democratically arranged social and economic development of the individuals. It was understood that social and economic justice couldn’t be accomplished without the development of rural territories and rural network since over 80% of the individuals lived in the town. Subsequently the development of rural zones and rural network was given accentuation by the Planning Commission.
Panchayats have been the foundation of the Indian towns since the start of written history. Mahatma Gandhi in 1946 had suitably commented that the Indian independence must start at the base and each town should be a republic or Panchayat having powers. Gandhi’s dream has been converted into reality with the presentation of the three-level Panchayati Raj system to guarantee individuals’ participation in rural development.