Decentralization is the new Mantra, for transparent and effective governance globally. With the reach of the internet and high speed communication networks, political and democratic inclusive participation is now feasible and is a reality. Now there is a growing clamor for decentralized governance. India, has not remained untouched by the global winds of change. The scholars as well, the whole new literature is emerging around this new concept of now decentralization and is central to the literature of governance and public administration, and it is regarded as one of the most important social innovations of the last century. Over the years across the world, experimentation with the centralized planning has not yield the desired results and causing disillusionment and disenchantment s in the masses. The uniqueness of the developing countries lies in its social cultural diversity. This diversity, which could have been advantages, has resulted in a liability due to unequal distribution of resources and lopsided development. Various regimes policy for inclusive developments in fact resulted in led to more decisiveness.