Evidence Reveals Why India Had to Rewrite MGNREGA: Wages Flatline, Productivity Lags

• MGNREGA is being recast as the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 (VB-G RAM G).
• NSSO and state budget data suggest MGNREGA did not consistently raise rural wages or significantly boost productivity, especially in poverty-stricken eastern states.
• Rural non-farm wages rose rapidly between FY11-FY16 but decelerated sharply thereafter, despite significant government spending (Rs 9.95 lakh crore, 80% after FY15).
• Productivity gains (GVA per worker) were more visible in the later period (FY15-FY24), but not strongly linked to MGNREGA's impact in key regions.
• The article concludes MGNREGA functioned more as income support than an efficiency driver, justifying the new VB-G RAM G's focus on tighter oversight and shared accountability.

Why It Matters: Data shows MGNREGA failed to consistently boost rural wages and productivity, necessitating its rewrite.