A Review of the Economic Impact of MGNREGA on Rural Livelihoods in India

Sunil

doi:10.69968/ijisem.2025v4i234-39

Authors

Sunil (Assistant Professor) Shri Vardhman Kanya P.G. Mahavidhyalaya, Beawar

DOI:

https://doi.org/10.69968/ijisem.2025v4i234-39

Keywords:

Economic development, Rural Livelihoods, Mahatma Gandhi National Rural Employment Guarantee (MGNREGA), Rural people, Agriculture and allied occupations, NREGA

Abstract

An important social welfare program in India that attempts to address unemployment and poverty is MGNREGA. Originally known as NREGA, it became a groundbreaking employment initiative that guaranteed 100 days of work and attracted significant public investment. By giving recipients more assets, MGNREGA has become a potent instrument for strengthening socially marginalised populations and promoting inclusive development over time. This article examines the several studies on the economic effects of MGNREGA on Indian rural lives. It concluded that MGNREGA has significantly impacted rural livelihoods in India by providing 100 days of wage employment, empowering women, conserving natural resources, and reducing migration. It has improved household income, enhanced asset ownership, and contributed to socio-economic upliftment. However, challenges remain in infrastructure, implementation, and access to basic amenities. Strengthening monitoring, integrating skill-based employment, and aligning with other development schemes can boost its effectiveness. As a flagship programe, MGNREGA continues to serve as a powerful tool for rural poverty alleviation and economic transformation, with scope for further improvement to ensure sustainable and inclusive rural development.

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