Good governance—which includes accountability, transparency, an effective bureaucracy, regulatory quality, electoral competition, political checks and balances and rule of law—is considered the single most important factor in eradicating poverty and promoting development. The article discusses changes that have taken place in India with regard to governance reforms, focusing on reforms related to decentralisation. A review of available evidence does not provide any definitive conclusion about the effectiveness of decentralisation in facilitating democratic deepening and improving the responsiveness of government. In most cases, decentralisation has failed to bring popular participation and accountability to local government, thereby making it less responsive to citizens’ desires and less effective in delivering services. Appropriate institutions, rules and incentive mechanisms are needed to link the citizens with government. Capacity development of the citizens and conscious and combined efforts by govern...