The third tier of federalism in India includes [[1]] and Municipalities.

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Detailed Solution

The third tier of federalism in India includes Panchayati Raj and Municipalities. The term "three-tier system" refers to the fundamental structure of the government in which there are three distinct tiers. Each has its independent legal authority.
Tier 1-Central Government
Tier 2-State Government
Tier 3-Panchayati Raj and Municipalities (Local Self-government)
Panchayati Raj is the name given to the level of governance present in rural areas and villages. Local and rural administration are the purview of the Panchayati Raj, which serves in this capacity. Municipalities are organisations accountable for governance in a town or area with a local government.

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