The 73rd amendment made provisions for reservations in Panchayati Raj institutions to ensure representation of socially disadvantaged groups. These reservations were introduced to address the concern that dominant castes and feudal landlords previously dominated local bodies.

One significant provision is the reservation for women in local bodies. This ensures women's equal share in power and aligns with the constitutional guarantee of equality between men and women. Women now have guaranteed representation in village-level governance.

For Adivasi populations, special provisions were made. Initially, the 73rd amendment provisions were not applicable to Adivasi areas. In 1996, a separate act extended these provisions, protecting the rights of Adivasi communities to manage their resources. More powers were given to Gram Sabhas in these areas.

These provisions have fundamentally changed the profile of leadership at the village level. Earlier, local bodies were dominated by dominant castes and feudal landlords. With reservations, leadership has become more diverse and representative. Women and members of socially disadvantaged groups now have opportunities to hold positions of power.

The leadership has become more inclusive, and in Adivasi areas, elected village panchayats have to get the consent of the Gram Sabha. This ensures that local traditions of self-government are protected while introducing modern elected bodies, consistent with the spirit of diversity and decentralisation.