India’s 126 Million Rural Workers at Risk: MGNREGA Repeal and the Rise of G-RAM-G Act
India's landmark MGNREGA scheme is replaced by the G-RAM-G Act. Explore how this shift from 'rights' to 'discretion' affects 126 million rural workers and center-state relations.
A safety net for 126 million people just became a matter of government 'discretion.' Narendra Modi’s government has effectively dismantled the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), replacing it with the G-RAM-G Act 2025. The move marks a tectonic shift from a rights-based legal guarantee to a centrally controlled mission.
From Legal Right to Central Discretion
Under the previous MGNREGA framework, rural citizens had a legal right to 100 days of manual labor. If denied, they could seek legal recourse. The new G-RAM-G Act strips away this enforceability. Economist Jean Dreze told the BBC that it allows the federal government to decide exactly where and when the scheme applies, removing the 'demand-driven' nature of the original law.
Political Rebranding and Federal Strains
The rebranding isn't just cosmetic. By dropping Mahatma Gandhi's name and using an acronym containing 'RAM'—a major Hindu deity—critics argue the BJP is playing to its Hindutva base. More critically, the funding structure has shifted from 100% central funding to a 60:40 ratio between the center and the states. This puts a massive financial burden on already cash-strapped state governments.
Government Defense vs. International Alarm
Agriculture Minister Shivraj Singh Chouhan defended the move, claiming work days will increase from 100 to 125. However, UN Rapporteur Olivier De Schutter and other economists have urged the government to reconsider, calling the MGNREGA the world's most significant policy for operationalizing a legal right to employment.
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