The Indian government has announced plans to repeal the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), a landmark legislation enacted in 2005, and replace it with a new initiative called the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025. This proposed legislation aims to provide 125 days of wage employment annually to rural households, marking a significant shift in the government’s approach to rural employment and development.
MGNREGA was introduced to enhance livelihood security in rural areas by guaranteeing at least 100 days of unskilled wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work. Over the years, it has been credited with reducing rural poverty, improving rural infrastructure, and empowering marginalized communities. However, the government has argued that the program has become a burden on public finances and has not sufficiently contributed to long-term rural development.
The new Viksit Bharat initiative is positioned as a forward-looking development mission aligned with the government’s vision for a “Viksit Bharat” or Developed India by 2047, which marks the centenary of India’s independence. The government has stated that the new scheme will focus on skill development, entrepreneurship, and sustainable livelihoods, aiming to transition from an entitlement-based safety net to a more dynamic and growth-oriented framework.
The proposed legislation is expected to be introduced in the upcoming parliamentary session, and the government has indicated that it will seek to implement the new scheme by the start of the next fiscal year. The shift from MGNREGA to the Viksit Bharat initiative has sparked considerable debate and controversy, particularly among opposition parties and social activists.
The Indian National Congress (INC), the principal opposition party, has criticized the government’s decision to remove Mahatma Gandhi’s name from the rural employment scheme. Congress leaders have expressed concerns that the repeal of MGNREGA signifies a broader trend of undermining social safety nets and eroding the rights of rural workers. They argue that MGNREGA has been instrumental in providing a lifeline to millions of rural households, especially during times of economic distress, such as the COVID-19 pandemic.
In response to the government’s announcement, Congress spokespersons have called for a public debate on the implications of replacing MGNREGA. They argue that the new scheme may not adequately address the needs of the rural poor and could lead to increased unemployment and economic insecurity in rural areas. Critics have also raised concerns about the potential for reduced transparency and accountability in the new framework, as MGNREGA was designed with specific provisions to ensure that funds were used effectively and that beneficiaries received their entitlements in a timely manner.
Supporters of the Viksit Bharat initiative, including government officials and some economists, argue that the new scheme is necessary to adapt to changing economic conditions and to better prepare rural communities for future challenges. They contend that the focus on skill development and entrepreneurship will empower rural workers to seek more sustainable and higher-paying employment opportunities, ultimately contributing to economic growth and development.
The implications of this policy shift are significant, as rural employment remains a critical issue in India, where a substantial portion of the population relies on agriculture and related activities for their livelihoods. The success of the Viksit Bharat initiative will depend on its implementation and the extent to which it can effectively address the diverse needs of rural communities.
As the government prepares to introduce the new legislation, stakeholders from various sectors, including civil society organizations, labor unions, and rural development experts, are closely monitoring the situation. The outcome of this policy shift could have far-reaching consequences for rural employment, poverty alleviation, and the overall socio-economic landscape of India.
In summary, the repeal of MGNREGA and the introduction of the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, represent a pivotal moment in India’s approach to rural employment and development. The debate surrounding this transition underscores the complexities of balancing economic growth with social welfare, and the coming months will be crucial in determining the future of rural livelihoods in the country.
