Abstract

Decentralization plays a crucial role in promoting economic development by empowering local governance structures. This paper examines the economic implications of decentralized governance in India focusing on resource management service delivery and local entrepreneurship. Case studies of states like Kerala and Maharashtra illustrate how decentralized initiatives have improved infrastructure education and public health. The study also identifies challenges including uneven resource allocation bureaucratic inefficiencies and lack of capacity-building programs. By analyzing the successes and limitations of decentralization the paper offers policy recommendations to strengthen local governance emphasizing its potential to drive inclusive economic growth and sustainable development in India.