India has introduced a comprehensive new rural employment framework, replacing the nearly two-decade-old MGNREGA with a modern, infrastructure-driven and digitally governed law aligned with the government’s long-term Viksit Bharat 2047 vision.
The new legislation, the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 (VB-G RAM G Act), marks a significant redesign of India’s rural employment architecture, shifting the focus from short-term wage support to durable asset creation, productivity enhancement, and income security.
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Expanded Employment Guarantee and Structural Reform
Under the new law, the statutory guarantee of wage employment has been increased from 100 to 125 days per rural household, applicable to adults willing to undertake unskilled manual work. The revised framework aims to simultaneously strengthen household income security and create long-lasting, productivity-enhancing rural assets through a nationally coordinated development strategy.
Officials have described the law as a modern, infrastructure-focused, and digitally governed system, addressing long-standing structural weaknesses in MGNREGA while improving transparency, efficiency, and outcomes.
Four Priority Infrastructure Verticals
Public works under the new programme will be organised across four priority verticals:
- Water security
- Core rural infrastructure
- Livelihood-related infrastructure
- Climate-resilient and extreme weather mitigation projects
All assets created under the programme will be integrated into the Viksit Bharat National Rural Infrastructure Stack, enabling unified planning, monitoring, and integration with geospatial and national digital platforms.
Digital Governance and Enhanced Oversight
A key feature of the new framework is its emphasis on technology-led governance and oversight. The programme introduces:
- AI-based fraud detection
- GPS-based monitoring
- Real-time dashboards for tracking implementation and outcomes
These measures are intended to reduce misappropriation, improve transparency, and address fiscal leakages, following reported losses of over ₹193.67 crore in 2024–25 under the earlier system.
Funding Structure and Agricultural Support
Funding for the programme will follow a 60:40 Centre–State sharing model, with a 90:10 ratio for North-Eastern and Himalayan states.
To support agricultural cycles, the law allows for up to a 60-day pause in works during sowing and harvest seasons, aligning employment guarantees with rural livelihood realities and farm productivity requirements.
Long-Term Development Orientation
Unlike the earlier framework, where works were often fragmented across categories, the new law emphasises targeted infrastructure creation linked to agriculture, livelihoods, and climate resilience. Mandatory Viksit Gram Panchayat Plans, aligned with national digital platforms, will guide local implementation while ensuring coherence with national development objectives.
Aligning Rural Employment with National Growth Goals
The introduction of the VB-G RAM G Act reflects the government’s intent to reposition rural employment policy as a core development and infrastructure instrument, rather than a purely welfare-based programme. By integrating technology, long-term planning, and climate resilience, the new law aims to support inclusive growth while advancing India’s broader Viksit Bharat 2047 agenda.
