Decentralisation is a major step towards modifying the concept of democracy and federalism. It is very significant for all practical aspects.
(i) It helps in the settlements of a large no. of problems and issues at the local level.
(ii) It provides a platform for the direct participation of people in decision making. Hence, inculcates a habit of democratic participation.
(iii) In another way, decentralization in the form of local self-government is the best way to realize principles of democracy i.e., democracy at the grassroot level. Thus, decentralization is the rationale for the federal concept.
