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India's employment guarantee scheme has weakened—that's a cause for worry

India's new rural job guarantee, VB-G RAM G, replacing MGNREGA, shows a concerning decline in employment generated. Despite severe monsoon deficits and heightened rural distress, July's data revealed significantly fewer person-days of work. This weakening trend precedes VB-G RAM G, but the new law, requiring states to bear 40% of costs, further impacts it. The author argues that reducing this crucial income-support system, especially with stagnant real wages, is problematic. The government should have strengthened the scheme to combat rural hardship and boost consumption.

LiveMint · Himanshu · Aug 20, 2026 at 7:00 AM

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