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Politics

Government likely to repeal MGNREGA, bring new rural employment law: Sources

MTXNewsroom
Last updated: December 15, 2025 8:42 am
By MTXNewsroom
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The Indian government is reportedly considering the repeal of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and is in the process of drafting a new law aimed at rural employment. Sources close to the matter have indicated that the proposed legislation could be introduced in the upcoming parliamentary session, marking a significant shift in the country’s approach to rural employment and welfare.

MGNREGA, enacted in 2005, was designed to provide a legal guarantee for 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. The program has been credited with improving rural livelihoods, reducing poverty, and empowering women by providing them with a source of income. Over the years, it has become one of the largest public works programs in the world, with millions of households benefiting from its provisions.

However, the program has faced criticism from various quarters, including allegations of inefficiency, corruption, and misuse of funds. Critics argue that the scheme has not effectively addressed the underlying issues of rural unemployment and that it has led to dependency on government support rather than fostering sustainable employment opportunities. The government has also pointed to challenges in implementation, including delays in wage payments and inadequate infrastructure in rural areas.

The potential repeal of MGNREGA comes amid a broader context of economic challenges in India, particularly in rural regions where unemployment rates have been a concern. The COVID-19 pandemic exacerbated these issues, leading to a significant loss of jobs and income for many rural households. As the economy recovers, the government appears to be reevaluating its strategies for rural employment.

The new rural employment law, details of which remain largely undisclosed, is expected to focus on creating more sustainable employment opportunities rather than providing guaranteed wage employment. Sources suggest that the government aims to introduce measures that will encourage skill development, entrepreneurship, and private sector participation in rural job creation. This shift aligns with the government’s broader economic agenda, which emphasizes self-reliance and the promotion of local industries.

The timeline for the introduction of the new law is still uncertain, but it is anticipated that discussions will take place in the upcoming winter session of Parliament. The government is likely to engage with various stakeholders, including state governments, rural development experts, and civil society organizations, to gather input on the proposed changes. The repeal of MGNREGA and the introduction of a new law could have significant implications for millions of rural workers who rely on the program for their livelihoods.

The potential repeal of MGNREGA has sparked a debate among policymakers, economists, and social activists. Proponents of the program argue that it has been instrumental in providing a safety net for rural households, particularly during times of economic distress. They caution that repealing the act without a robust alternative in place could lead to increased poverty and social unrest in rural areas.

On the other hand, supporters of the new approach contend that a more flexible and dynamic framework for rural employment is necessary to address the evolving needs of the workforce. They argue that the focus should shift from mere job guarantees to creating an environment conducive to job creation and economic growth.

As the government prepares to unveil its plans, the implications of this potential policy shift will be closely monitored by various stakeholders. The success of any new rural employment law will depend on its ability to effectively address the challenges of rural unemployment while ensuring that vulnerable populations are not left without support.

In conclusion, the Indian government’s consideration of repealing MGNREGA and introducing a new rural employment law marks a pivotal moment in the country’s approach to rural development. As the situation unfolds, the impact on rural livelihoods, economic stability, and social equity will be critical areas of focus for policymakers and the public alike. The outcome of this initiative could reshape the landscape of rural employment in India for years to come.

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