He was speaking to reporters after inaugurating an exhibition titled "Gandhiji and Textiles of Peace" being organised on the eve of Gandhi Jayanti.
"There is need for empowering the local bodies with more and more autonomy. Independent financial powers should be given to local bodies to undertake developmental works in a more efficient way," he said in reply to a question on killings of panchayat members in Jammu and Kashmir.
Ramesh said from this year onward, one per cent of the Rural Development Ministry's budget that comes to around Rs 1000 crore will be given for strengthening the panchayati raj institutions in the country.
Noting that village industries and particularly khadi have become more relevant in India in an age of globalisation, he said his endeavour will be to bring more and more industries in rural India, so that more jobs can be created.
Though MNREGA is doing a good job in providing livelihood security to the rural poor, there is also a need for creating permanent assets in the rural areas, Ramesh said.
The exhibition is being organised by the National Archives of India in collaboration with Malkha Marketing Trust, Hyderabad at its premises at Janpath here. The exhibition features indigenous textile products by several leading group of craftsmen and organisations.
A display of rare archival documents and photographs entitled "A Satyagrahi of South Africa: Mahatma Gandhi and Hindi" will also be on view.
The display will portray the activities of Gandhi in South Africa as well as his support for the cause of Indians in South Africa after his departure in 1914.