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

Question

Ghissu Editorial · Accepted Answer

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%.

**Introduction**

MGNREGS plays a crucial role in mitigating rural unemployment, especially in agrarian states like ==Andhra Pradesh⟦1⟧==, 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**

SKETCH: mindmap | MGNREGS Impact Dimensions  
- Employment Generation  
- Asset Creation  
- Social Inclusion

1. **Large Employment Generation**: In FY 2024⟦2⟧-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**

3. **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.

4. **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**

5. **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**

7. **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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