2012 · Paper IVFrequently asked

Assess the impact of MGNREGS in reducing the intensity of unemployment in rural areas of our country

In short

MGNREGS has clearly reduced the intensity of rural unemployment by providing guaranteed wage work in lean seasons and shocks like COVID-19, cutting distress migration and drawing in women, though it remains a cushion rather than a cure. It generated 290.60 crore person-days in 2024-25, with women's participation at 58.15%.

Model answer

Ghissu Editorial · Verified 4 Oct 2026

Introduction
MGNREGS plays a crucial role in mitigating rural unemployment, especially in agrarian states like Andhra Pradesh1, where it supports livelihood security amid seasonal distress and migration. The scheme’s importance surged during the COVID-19 pandemic, addressing reverse migration and urban job losses.
MGNREGS’s Effect on Rural Unemployment
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Large Employment Generation

In FY 20242-25, MGNREGS created 290.60 crore person-days, helping absorb seasonal and distress unemployment in rural India, including Andhra Pradesh. This scale reflects its role as a major rural employment provider.

Mechanisms Influencing Rural Employment
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Direct Wage Employment and Asset Creation

MGNREGS offers unskilled jobs and builds rural assets like water conservation structures, enhancing agricultural productivity and livelihood diversification in Andhra Pradesh. These durable assets reduce dependence on casual labour and improve resilience.

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Social Inclusion and Decentralization

Mandated women’s participation (58.15%3 in FY 2024-25) and Panchayati Raj involvement promote equitable access, though decentralization faces challenges. Targeting marginalized groups strengthens social safety nets and empowerment.

Limitations and Challenges
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Inadequate Work Days and Wage Delays

The 100-day guarantee is insufficient, with wage delays and below-minimum wages reducing effectiveness, as seen in Andhra Pradesh. This leaves many rural workers underemployed, especially in drought-prone areas.

Way Forward
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Expand Work Days and Improve Implementation

Increasing guaranteed days beyond 100, especially in drought-prone Rayalaseema, and strengthening institutional capacity are essential. Enhancing wage payments and ensuring asset quality will boost rural livelihoods.

Conclusion
MGNREGS has reduced rural unemployment intensity but requires reforms in work days, wage payments, and asset quality to ensure sustained rural development. Its continued strengthening is vital for inclusive growth in rural India.

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Hand-drawn diagram: How MGNREGS Eases Rural Unemployment. How MGNREGS Eases Rural Unemployment. Flow: Lean-season joblessness → Guaranteed local wage work → Income, less distress migration → Water and soil assets → Higher farm productivity
Diagram: How MGNREGS Eases Rural Unemployment

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Inclusive Growth: India and AP schemes49 questions

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