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Union Territories & Panchayats
(1) Every State shall have Panchayats at the village, intermediate, and district levels. (2) A State with a population not exceeding 20 lakh (2 million) need not constitute an intermediate-level Panchayat.
This mandates a three-tier rural local government structure across every state (village, intermediate/block, and district level), with a size-based exception letting smaller states skip the middle tier if their population doesn't justify it.
This is why India's rural local governance typically follows a three-tier structure - Gram Panchayat (village), Panchayat Samiti (intermediate/block), and Zila Parishad (district) - though very small states may only have two tiers.