What major steps were taken towards decentralisation in 1992?

Major step towards decentralization was taken in 1992. The Constitution was amended to make the third-tier of democracy more powerful and effective. 

• It is constitutionally mandatory to hold regular elections to local government bodies. 
• Seats are reserved in the elected bodies and the executive heads of these institutions for the Scheduled Castes, Scheduled Tribes and Other Backward Classes.
• At least one-third of all positions are reserved for women. 
• An independent institution called the State Election Commission has been created in each State to conduct panchayat and municipal elections. 
• The State governments are required to share some powers and revenue with local government bodies. The nature of sharing varies from State to State.