"Decentralisation" is a major step to modify the concept of democracy and federalism. It is very significant for all practical aspects.
(i) It helps in the settlement of a large number of problems and issues at the local level.
(ii) It provides a platform for the direct participation of people in decision making. Hence, inculcates a habit of "democratic participation."
(iii) In another way decentralisation in the form of "local self government" is the best way to realise principles of Democracy, i.e., "Democracy at the grassroots level."
(iv) Thus, decentralisation is rationale for the federal concept.