India Introduces Viksit Bharat Bill for Rural Employment Reform

The Viksit Bharat- Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, known as the Viksit Bharat- G RAM G Bill, 2025, introduces a new framework for rural employment in India by replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) of 2005. This legislation prioritizes rural infrastructure and climate-resilient works as core verticals, enhancing employment guarantees while aligning with the national vision of Viksit Bharat 2047.

Background and Evolution of Rural Employment Policy

Rural employment has served as a vital component of India's social protection system for almost two decades. Enacted in 2005, MGNREGA provided a legal guarantee of 100 days of wage employment per financial year to rural households willing to do unskilled manual work. The scheme contributed to income stabilization, poverty alleviation, and the creation of basic rural assets such as water conservation structures and village roads. Over 2.5 billion person-days of work were generated annually in recent years, benefiting millions of rural workers.

However, evolving socio-economic conditions in rural India necessitated reforms. Factors including rising household incomes, improved road connectivity, digital adoption, and diversification of livelihoods shifted the demands on rural employment programs. Persistent challenges under MGNREGA included implementation gaps, delays in wage payments, leakages, and limited focus on high-impact assets. The new Bill addresses these by modernizing the framework, emphasizing productive outcomes, and integrating employment with long-term development goals.

The Viksit Bharat- G RAM G Bill, 2025, builds on MGNREGA's foundations while introducing structural enhancements. It responds to the need for a more accountable, infrastructure-oriented, and climate-adaptive approach to rural job creation. By reorienting works towards sustainable assets, the legislation aims to boost rural resilience and economic productivity.

Announcement and Parliamentary Passage

Union Minister of Rural Development and Agriculture & Farmers Welfare, Shivraj Singh Chouhan, introduced the Bill in the Lok Sabha on December 17, 2025, during the Winter Session of Parliament. The legislation was tabled for consideration amid discussions on rural development priorities. It passed the Lok Sabha on December 18, 2025, marking a significant step towards enactment pending Rajya Sabha approval and presidential assent.

The Bill's introduction reflects the government's commitment to updating rural employment laws in line with contemporary needs. Official statements from the Press Information Bureau highlight its role in providing a statutory guarantee of employment while promoting convergence with other development schemes. The process involved consultations on aligning the scheme with Viksit Bharat 2047, India's roadmap for becoming a developed nation by mid-century.

Key Provisions: Enhanced Employment Guarantee

Central to the Bill is an expanded employment entitlement. Rural households whose adult members volunteer for unskilled manual work now receive a guarantee of 125 days of wage employment per financial year, up from 100 days under MGNREGA. This increase supports greater income security for workers while accommodating agricultural cycles.

To balance labor availability for farming, the framework includes a mandatory 60-day pause in public works during peak sowing and harvesting seasons, as notified by states. Employment is thus assured within the remaining 305 days of the year. Wages must be disbursed weekly or within a fortnight of work completion, with digital mechanisms ensuring transparency and timeliness.

If employment is not provided within 15 days of demand, workers become eligible for an unemployment allowance, with liability on state governments. Rates and conditions for this allowance will be specified in rules, providing flexibility while protecting entitlements.

Priority Verticals: Focus on Infrastructure and Climate Resilience

Employment generation under the new framework is tightly linked to asset creation through four core verticals, with rural infrastructure and climate-resilient works positioned as priorities. This shift ensures that labor translates into durable public goods, enhancing rural productivity and sustainability.

Rural Infrastructure

Works in this vertical target essential connectivity and services. Priority areas include construction and maintenance of all-weather roads, bridges, and footpaths to improve market access for farmers and reduce transportation costs. Investments in community centers, anganwadi buildings, and sanitation facilities strengthen social infrastructure. Planning occurs at the Gram Panchayat level, ensuring works address local gaps identified through participatory processes.

These initiatives are expected to facilitate better integration of rural economies with urban markets, supporting diversification beyond agriculture. For instance, improved roads enable timely delivery of produce, potentially increasing farmer incomes by 10-20% in connected villages based on prior studies of similar interventions.

Climate-Resilient Works

Climate adaptation forms another pillar, focusing on water management and environmental protection. Key activities encompass rainwater harvesting structures, check dams, farm ponds, and groundwater recharge systems to combat water scarcity. Flood control measures, such as drainage channels and embankments, along with soil conservation efforts like contour bunding and afforestation, build resilience against extreme weather.

These works align with national climate goals, promoting sustainable agriculture amid rising temperatures and erratic monsoons. By prioritizing such projects, the Bill ensures rural communities contribute to and benefit from India's net-zero ambitions, with assets like water harvesting structures capable of recharging aquifers and supporting irrigation for multiple cropping seasons.

Other Supporting Verticals

Complementing the core areas are agriculture-supportive works, such as land development, fencing, and irrigation channels, and livelihood infrastructure like rural godowns, haat bazaars, and production sheds for micro-enterprises. These foster income diversification, enabling rural households to engage in allied activities like dairy, poultry, and handicrafts.

• Agriculture-supportive works enhance farm productivity through soil and water conservation.
• Livelihood infrastructure creates spaces for value addition and marketing of rural produce.

Financial and Administrative Reforms

The Bill transitions the scheme from a central sector program to a centrally sponsored scheme, introducing cost-sharing between the Centre and states. This normative allocation framework incentivizes efficient implementation and curbs misuse by aligning financial responsibilities with execution duties. States bear greater accountability for planning, monitoring, and outcomes, while the Centre provides funding support and sets national standards.

Planning is decentralized through Viksit Gram Panchayat Plans, developed annually with community input. Digital tools for attendance, wage payments, and work monitoring enhance transparency, building on MGNREGA's Aadhaar-enabled systems. Social audits and grievance redressal mechanisms are strengthened to ensure worker rights and project quality.

Administrative impacts include capacity building for Panchayati Raj Institutions, with Gram Sabhas playing a pivotal role in work selection. States must notify agricultural pause periods, preventing wage competition with farm labor and stabilizing rural economies.

Expected Impacts on Rural Economy and Livelihoods

The enhanced 125-day guarantee could raise annual household earnings significantly, with estimates suggesting an additional 25 days of work translating to roughly 20-30% more income for participating families, depending on wage rates. This stimulates local consumption, supports small businesses, and reduces distress migration to urban areas.

For farmers, assured labor during off-peak periods, coupled with irrigation and storage assets, improves productivity. Climate-resilient infrastructure mitigates risks from droughts and floods, potentially safeguarding 10-15% of crop losses in vulnerable regions. Workers benefit from secure digital payments, skill exposure through asset creation, and unemployment safeguards.

On a broader scale, the focus on high-quality assets could generate a multiplier effect. Prior MGNREGA evaluations showed each rupee invested yielding 1.5-2 rupees in economic returns through improved agriculture and connectivity. The new verticals amplify this by targeting high-return projects, fostering resilient rural growth aligned with Viksit Bharat objectives.

Implementation Roadmap and State Role

Post-enactment, rules will detail wage rates, cost norms, and compliance procedures. States must prepare for the shift by updating administrative systems and training personnel. A transition phase allows integration of ongoing MGNREGA works, ensuring continuity for workers.

The cooperative federal structure encourages states to innovate within national guidelines. For example, states with acute water stress can allocate more funds to climate works, while others prioritize roads. Annual performance audits will track outcomes like asset completion rates and employment days generated.

Broader Alignment with National Development Goals

The Bill integrates with schemes like Jal Jeevan Mission for water security and PM Gram Sadak Yojana for roads, promoting saturation of services. Digital governance supports Aatmanirbhar Bharat by enabling data-driven decisions, such as prioritizing works in migration-prone blocks.

In the context of climate change, the emphasis on resilience positions rural India as a frontline in adaptation efforts. Works like solar-powered irrigation and agroforestry contribute to green jobs, aligning with India's commitments under international agreements.

Challenges and Safeguards

Effective rollout hinges on timely fund releases, skilled oversight, and community participation. Safeguards include mandatory convergence guidelines, third-party evaluations, and penalties for delays. The unemployment allowance enforces accountability, compelling states to meet demand.

Monitoring through a national portal will provide real-time data on works, wages, and assets, enabling corrective actions. This data-centric approach minimizes leakages observed in earlier implementations.

The Viksit Bharat- G RAM G Bill, 2025, repositions rural employment as a catalyst for sustainable development. By prioritizing rural infrastructure and climate-resilient works, it equips rural India with assets for prosperity and security. As implementation unfolds, it promises to strengthen livelihoods, reduce vulnerabilities, and advance the vision of a developed Bharat.

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