Abstract: The three-tier Panchayati Raj System's effects on rural development in Madhya Pradesh's Indore district are evaluated in this study. The study looks at how Panchayat Samitis, Zila Panchayat, and Gram Panchayats operate within the framework of the 73rd Constitutional Amendment, with a particular emphasis on how they plan, carry out, and oversee rural development projects. The study assesses financial management techniques, administrative effectiveness, and local stakeholder participation in governance procedures using district-level analysis. Limited financial autonomy, capacity gaps among elected representatives, and procedural delays impacting plan execution are among the major issues identified by the report. Despite these limitations, the results show that the three-tier Panchayati Raj System has improved community involvement, social welfare delivery, and infrastructure development in Indore's rural districts. The study comes to the conclusion that Panchayati Raj Institutions can be made even more effective in attaining sustainable rural development at the district level by bolstering institutional capacity, improving fiscal decentralization, and encouraging digital governance systems.

Keywords: Three-Tier Panchayati Raj System's, Rural Development Governance Systems.