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Decentralisation has always figured on India’s policy agenda in one form or other. Its fortunes, however, have fluctuated in response to several factors. Among them the attitude of the centre and the specific socio-political contexts in different states are particularly important. The latter explains, to a large extent, differences in the performance of Panchayat Raj Institutions across states despite the 73rd amendment which has mandated a more or less uniform structure throughout the country. This paper explores the inter-connections among the factors listed above.