The fundamental principle of democracy is people's participation and accountability. Democracy is not limited to elections alone; rather, it is a process in which every citizen participates in the development and decisions of their area. Local institutions, such as village panchayats, nagar palikas, and municipal councils, are the first stage of democracy. Just as democracy is not complete merely through elections, similarly, electing local representatives without giving them real power yields no benefit.
 Due to the lack of real capability to make decisions at the grassroots level, people in villages or small towns often have to depend on the pressure of the central or state government for their needs. For example, decisions regarding cleanliness in the village, water supply, road repairs, or school renovations often remain pending due to delays in budget or approvals. This creates dissatisfaction among the people, and they lose trust in their local representatives.
The limited powers of local institutions also have a significant economic impact. Village panchayats and nagar palikas have their own budgets, but a very large portion is reserved for centrally or state-sponsored schemes. As a result, local leaders are unable to fully address local issues such as small industries, local businesses, or employment opportunities for the youth. Consequently, the economic dynamism of small towns gradually slows down.
The limited powers of local institutions also create an impact at the social level. When people cannot expect real decision-making from their elected panchayat or council, their interest in raising complaints, suggestions, and innovative ideas decreases. Due to reduced public participation, social cooperation and shared culture also come under threat. In small towns, the low presence of youth affects community traditions, social gatherings, and cultural programs. 
Along with this, the impact is clear in the fields of health and education as well. For instance, opening health centers, schools, or primary health services often requires budget and approval from the state government. This process delays people's access to essential services. As a result, people lose trust in local government.
Nevertheless, in many cases, local institutions in small towns and villages have played an important role. In the past few years, village panchayats have launched programs such as clean water, improvements in schools, road repairs, and cleanliness campaigns. This proves that if local institutions are given real power, they can make major decisions in their areas.
To increase the power of local institutions, some important steps can be taken. First, the budget should be increased so that villages and nagar palikas can make decisions according to the real needs of their areas. Second, methods should be created for local representatives to interact with citizens and take suggestions. Third, state and central governments should grant local institutions the right to accountability so that they can bring innovation and development in their areas. 
The participation of youth is very important in this. If the youth are not involved in the decisions of their area, they are becoming distant from local issues and development. It is essential to involve people in local decisions through schools, colleges, and youth clubs. This not only brings new ideas but also instills a sense of accountability and leadership among the youth.
The real strength of local democracy lies in the balance of people's participation, control over budget and decisions, and accountability. If this power is given to local representatives, then not only can small towns and villages develop, but the true spirit of democracy will remain alive. Local institutions are not just representative bodies; they are the real engines of decision-making. 
If they are given full power, budget, and accountability, then small towns, villages, and areas can become self-reliant, and the true foundation of democracy can be established. Only with empowered local institutions will democracy become strong at the grassroots level, trust among people will increase, and the pace of social, economic, and cultural development will accelerate.

— Davinder Kumar