Pankaj Jain, New Delhi, Jan 29(.) Women’s participation in rural employment has increased steadily from 48 per cent in FY14 to 58.1 per cent in FY25, according to the Economic Survey 2025–26 tabled in Parliament on Wednesday by union Finance and Corporate Affairs Minister Nirmala Sitharaman.
The Survey said rural employment has remained a key pillar of India’s social protection framework for nearly two decades. Since its launch in 2005, the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA) has provided wage employment, stabilised rural incomes and created basic infrastructure by offering up to 100 days of guaranteed unskilled work to rural households.
Over the years, rising incomes, better connectivity, wider digital adoption and diversified livelihoods have changed rural employment needs, highlighting both the achievements of MGNREGS and the need to revisit its structure and objectives.
The Survey noted that several administrative and technological reforms have strengthened implementation, leading to higher participation, improved transparency and stronger digital governance. Aadhaar seeding expanded sharply, Aadhaar-based payments were widely adopted and electronic wage transfers became nearly universal. Monitoring also improved through large-scale geo-tagging of assets and a growing share of household-level works. Field staff played a crucial role in sustaining operations despite limited resources.
However, the Survey also pointed to persistent structural challenges. Reviews in several states found gaps such as work not being carried out on the ground, mismatch between spending and physical progress, use of machines in labour-intensive projects and frequent bypassing of digital attendance systems. Misappropriation accumulated over time, while only a small share of households completed the full 100 days of employment after the pandemic, indicating that the existing framework had reached its limits.
Against this backdrop, the government has enacted the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, also known as the VB G-RAM G Act, 2025. The new law replaces MGNREGA with a comprehensive statutory framework aligned with the vision of Viksit Bharat 2047, focusing on stronger accountability, improved infrastructure outcomes and income security.
Under the new Act, wages will be paid weekly or within a maximum of 15 days after work completion to ensure timely payments. Administrative capacity has been strengthened by raising the expenditure ceiling from 6 per cent to 9 per cent, enabling better staffing, training and technical support.
Planning will be driven by Viksit Gram Panchayat Plans integrated with national platforms such as PM Gati Shakti, with Gram Panchayats continuing to implement at least half of total works. All assets created will be mapped under the Viksit Bharat National Rural Infrastructure Stack to align local development with national priorities.
The Act also introduces tighter transparency and monitoring measures, including real-time digital tracking, GPS-enabled work monitoring, regular social audits and weekly public disclosures. The Centre has been empowered to investigate complaints, suspend funds in cases of serious irregularities and direct corrective action. Biometric authentication and AI-based tools will help detect early warning signs of misuse.
The financial framework provides predictable funding with safeguards against misappropriation, while offering additional support during disasters.
The Survey said the VB G-RAM G Act, 2025 marks a major shift in India’s rural employment policy, building on past gains in participation and digitisation while addressing long-standing weaknesses through a modern, accountable and infrastructure-focused approach.
. PKJ KK