This paper discussed about the Rationale of Good governance in present era of Globalization at Grass root level. It discuss about the Rural India and 73rd Amendment act of 1992 and how Panchayati raj Institutions and the need of transparency and accountability through good governance. For the upliftment of rural village there is an esurience of delivering better service by using information technology and giving better quality of life at grass roots. For this there is need to strengthen democracy through good governance. The issue of governance at the forefront of the development agenda and states “good governance is one of most crucial factor for development”. Governance is wider than government which ensures the responsibility and accountability of various community i.e. government, the civil society and the corporate sector.