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Panchayat Raj Institutions are assumed as the backbone of Indian villages. It is considered as the Third Government or Local Government enacting and implementing various rural developmental programmes and programs. The main thrust of all panchayat programmes ensures overall economic and social transformation of rural areas and reach the disadvantaged sections and addresses the poverty issues. Effective administration of Panchayat Raj Institution that is by the people for the people helps to play different roles in achieving the rural developmental goals. By the way of addressing the contemporary rural social problems and uncongenial conditions or trends that are prevailing such as farmer's suicide, price fluctuations, declining production due to climate change etc, PRI adheres and emphasis the need and aspirations of the local people and utilizes the governmental provision to its maximum. Mr. P. Balamurugan, the author, has meticulously pointed out the historical root tracks of Panchayat Raj system in this book. Move rover he identifies the problems and prospects of PRI in addressing the rural developmental goals.