India Proposes Major Overhaul of Rural Employment Framework with New Bill

The Indian government has introduced a transformative bill aimed at overhauling the rural employment framework, replacing the long-standing MGNREGA. This new legislation promises 125 days of guaranteed employment annually while addressing structural issues in the existing system. Despite strong opposition and protests, the bill was passed in Parliament, with the government asserting its necessity for rural development and job creation. The implications for farmers and laborers are significant, with expectations of improved earnings and job security. This initiative is part of a broader vision for rural transformation in India, linking employment guarantees to sustainable development goals.

By Narendra Chaudhary Dec 19, 2025, 10:12 IST

Introduction to the New Employment Bill

The Indian government has introduced the Developed India – Employment and Livelihood Mission (Rural) Bill, 2025, aiming to significantly transform the rural employment landscape. This legislation seeks to replace the nearly two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with a new legal framework aligned with the long-term vision of Developed India 2047. This initiative marks a shift from a welfare-centric employment program to a model that closely integrates guaranteed work with sustainable infrastructure, climate resilience, and predictable public expenditure.

Parliament's Approval Amidst Opposition

On Thursday, Parliament approved the Developed India Guarantee for Employment and Livelihood Mission (Rural) Bill, commonly referred to as G RAM G. This new bill will replace the long-standing MGNREGA scheme, promising 125 days of rural wage employment annually. The approval came despite strong opposition from various parties. Rural Development Minister Shivraj Singh Chouhan stated that the aim of this change is to address the structural deficiencies of the existing scheme.

Debate and Opposition Reactions

Following hours of debate in the Lok Sabha, the bill was passed in the Rajya Sabha by a voice vote just after midnight. Opposition members protested against the removal of Mahatma Gandhi's name from MGNREGA, accusing the central government of shifting the financial burden onto the states. During the session, protesting members demanded the bill's withdrawal, chanted slogans against the government, and tore copies of the legislation.

Protests and Demands for Review

After the bill's passage, opposition parties staged a protest outside the Constitution Hall within the Parliament premises, claiming that the law undermines the rural economy and announcing plans for a nationwide movement. Members of the Trinamool Congress decided to sit in protest on the steps of the Constitution Hall for 12 hours. They also called for the bill to be sent to a parliamentary committee for thorough examination.

Government's Defense of the Bill

In response to the five-hour debate in the Rajya Sabha, Shivraj Singh Chouhan defended the bill, asserting its necessity for job creation, rural development, and national progress. He accused the Congress party of exploiting Mahatma Gandhi's name for political gain while undermining his ideals. Chouhan emphasized the bill's importance, stating, "This legislation is crucial as it will provide employment opportunities, aid in the development of rural India, and propel the nation forward."

Concerns Over Previous Administration

The senior BJP leader also criticized the UPA government's tenure, claiming that MGNREGA was plagued by corruption and that allocated funds were not properly utilized for the intended projects. He remarked, "I listened patiently to the opposition for hours, hoping they would hear my response. Fleeing after making accusations is akin to killing the dreams and ideals of Mahatma Gandhi," as opposition members continued their protests. Chouhan noted that the original rural employment scheme was initiated in 2005 and that Gandhi's name was added by Congress in 2009 for electoral advantage.

Implications for Farmers and Laborers

For rural workers, increased employment opportunities mean greater earning potential, a defined work schedule, and timely digital wage payments. If work is not provided within 15 days of demand, states will be required to offer unemployment benefits. Farmers are expected to benefit from improved irrigation, water conservation, storage, and connectivity facilities, as well as protection against labor shortages during critical farming seasons.

Conclusion: A Vision for Rural Transformation

The government is presenting this bill as part of a broader transformation in rural India, highlighting rapid poverty reduction, rising incomes, and diverse livelihoods. By linking employment guarantees to long-term asset creation and climate change mitigation, the new framework aims to redefine rural employment as a means of development rather than merely a safety net.