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 27-May-2025

Panchayat Advancement Index (PAI) 2.0 Portal

Indian Polity

Why in News?  

The PAI 2.0 Portal was launched on 26 May 2025 to support data-driven rural governance, with tools like the Local Indicator Framework and SOPs aimed at improving panchayat-level planning and development.  

What is the Panchayat Advancement Index (PAI)?  

  • PAI is a composite index that evaluates the development and performance of Gram Panchayats using socio-economic indicators.  
  • It identifies development gaps and supports data-driven local planning.  
  • The index aligns with Localisation of SDGs (LSDGs) and is based on the National Indicator Framework (NIF) by MoSPI.  
  • It reflects India's commitment to the 2030 SDG Agenda.  
  • Promotes participatory governance and guides effective rural policy-making.  

Panchayati Raj Institutions

 Constitutional Provisions Regarding PRIs   

  • The 73rd Constitutional Amendment Act, 1992, established Panchayati Raj Institutions (PRIs) as a fundamental part of Indian governance.   
  • Three-tier system: The Act introduced a three-tier system of Panchayats at the village, block and district levels, promoting decentralized governance.   
  • Key Provisions   
    • Reservation of Seats: For Scheduled Castes (SCs), Scheduled Tribes (STs) and women.   
    • Regular Elections: Mandates regular elections to ensure democratic functioning.   
    • Finance Commissions: State Finance Commissions to oversee financial management and resource allocation.   
    • Powers & Functions: Panchayats are empowered to prepare plans for economic development and social justice.