Short Description
President Droupadi Murmu’s assent to the VB-G RAM G Act, 2025, signals a major shift in rural employment policy, enhancing wage guarantees and supporting rural household income.
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3 minutes 45 seconds
Main Article
On December 21, President Droupadi Murmu officially approved the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, which replaces the UPA-era MGNREGA. The new legislation significantly revises the existing rural employment landscape, offering a guaranteed 125 days of wage employment annually to rural households eager to participate in unskilled manual work. This reform aims to align rural development practices with India’s national vision of “Vikshit Bharat@2047,” a comprehensive strategy aimed at national prosperity and sustainability.
The new VB-G RAM G Act, 2025, not only enhances employment provisions from the previous MGNREGA’s 100-day entitlement but also aims to bolster livelihood security, work predictability, and income stability among rural communities. Rural Development Minister Shivraj Singh Chouhan emphasized that the initiative is designed to uplift the poor, asserting that misinformation surrounding the legislation seeks to undermine its benefits. The government has earmarked an impressive ₹1,51,282 crore (approximately $18.5 billion) for the scheme in its current fiscal year, assuring sufficient funds to provide timely and adequate wages for workers involved in various projects.
In a broader economic context, this move by the Indian government reflects a strategic pivot towards sustained rural development. The increase in administrative expenses from 6% to 9% not only underscores a commitment to effective program management but also ensures that the workforce receives timely compensation. This change is particularly compelling for stakeholders in the finance industry in the U.S., as it highlights potential future investments in India’s rural economy, presenting opportunities for foreign direct investment and collaboration on community upliftment projects.
Overall, the VB-G RAM G Act brings to the forefront critical discussions regarding funding, program efficiency, and the socio-economic rights of rural populations. The government aims to counter opposition by reinforcing its commitment to employment guarantees, thus addressing challenges faced by rural households and expanding their capacity to engage in economic activities.
Short Summary
The passage of the VB-G RAM G Act, 2025, represents a transformative approach to India’s rural employment policies, enhancing wage guarantees and income stability for rural households. With substantial financial backing, the act aims to improve livelihoods and ensure timely compensation, fostering a more sustainable socio-economic environment. This significant legislative change is not only beneficial for rural communities but also presents valuable opportunities for investment and collaboration in the finance sector.
