India to Launch New Rural Employment Scheme Replacing MGNREGA on July 1
New rural employment guarantee scheme to replace MNREGA from 1 July, govt says
Mint
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The Indian government will implement the Viksit Bharat – Guarantee for Employment and Livelihood Mission (Gramin) from July 1, 2025, replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The new scheme increases guaranteed employment from 100 to 125 days per year for rural households and has a total budget of over ₹1.51 trillion (approximately $18 billion USD).
- 01The new VB-GRAM G Act increases guaranteed rural employment from 100 to 125 days per year.
- 02The total budget for the scheme exceeds ₹1.51 trillion (approximately $18 billion USD).
- 03Wage payments will be made via direct benefit transfer (DBT) within a maximum of 15 days.
- 04The mission will focus on water conservation, rural infrastructure, livelihood assets, and disaster resilience.
- 05States have a six-month window to prepare for the transition to the new scheme.
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The Indian government has announced the implementation of the Viksit Bharat – Guarantee for Employment and Livelihood Mission (Gramin) Act, 2025, set to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) starting July 1, 2025. This new law increases the guaranteed employment period for rural households from 100 days to 125 days annually. The Parliament passed the VB-GRAM G Bill on December 19, 2025, with President Droupadi Murmu's assent shortly thereafter, marking a significant overhaul of rural employment policies in India.
Union Agriculture and Rural Development Minister Shivraj Singh Chouhan stated that ongoing MGNREGA projects will continue during the transition, ensuring no disruption in employment. States have been allocated over ₹95,000 crore (approximately $11.5 billion USD) from the national budget, contributing to a total outlay exceeding ₹1.51 trillion (around $18 billion USD). The government aims to streamline wage payments through direct benefit transfer (DBT), ensuring they are processed within three days, with a maximum limit of 15 days.
The VB-GRAM G mission will focus on four key areas: enhancing water security, building rural infrastructure such as roads and schools, creating livelihood assets for self-help groups, and developing disaster resilience structures. States are given six months to prepare for the new framework, with provisions in place for those that may not meet the deadline.
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The new scheme aims to provide more job opportunities for rural households, potentially improving livelihoods and economic stability in rural areas.
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