Question : Panchayati Raj institutions are important for:
Option 1: Centralizing administrative power
Option 2: Promoting grassroots democracy
Option 3: Eliminating local governance structures
Option 4: Focusing exclusively on urban development
Correct Answer: Promoting grassroots democracy
Solution : Panchayati Raj institutions are important for promoting grassroots democracy by empowering local communities to participate in governance and decision-making processes.