India's Government Plans Major Changes to Rural Employment Scheme and Faces Economic Challenges
Proposed Changes to Rural Employment Legislation
The Indian government is set to unveil the 2025 Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, which aims to replace the existing 2005 Mahatma Gandhi National Rural Employment Guarantee Act. This new legislation seeks to increase the guaranteed workdays from 100 to 125 annually and raise the states' financial contribution to 40%.
Additionally, the bill stipulates that only the central government will have the authority to designate rural areas within a state for the implementation of this scheme.
Originally launched in 2005 by the Congress-led United Progressive Alliance, the MGNREGA was designed to improve livelihood security for rural households, ensuring 100 days of unskilled work each year for those who request it, covering all districts nationwide.
NREGA Sangharsh, a rights organization advocating for MGNREGA workers, has called for any amendments to the Act to be preceded by public transparency and democratic discussions involving laborers, worker organizations, trade unions, and state representatives.
Rupee Hits Record Low Amid Economic Uncertainty
The Indian rupee has plummeted to a historic low of 90.64 against the US dollar, reflecting ongoing uncertainty regarding a potential trade agreement between India and the United States.
This decline follows the previous record low of 90.55 reached just days earlier.
So far in 2025, the rupee has depreciated by 5.5%, making it the weakest-performing currency in Asia this year.
Additionally, foreign investors have withdrawn $18 billion from Indian equity markets in 2025.
In the absence of a trade deal with the US, Indian exports are facing a cumulative tariff rate of 50%, which includes a 25% reciprocal duty imposed on August 7, followed by another 25% punitive tariff introduced on August 27.
Supreme Court Grants Bail to Journalist in Money Laundering Case
The Supreme Court has granted interim bail to Mahesh Langa, a journalist from a prominent media outlet in Ahmedabad, who is embroiled in a money laundering case initiated by the Enforcement Directorate based on two other alleged cheating cases.
The court has instructed him to provide bail bonds as directed by the special court under the Prevention of Money Laundering Act.
Furthermore, the bench has prohibited him from publishing any articles related to the allegations against him and has ordered the special court to expedite the case by hearing the testimonies of nine witnesses.
Langa was initially detained by the city Crime Branch on October 7, 2024, for his suspected involvement in a Goods and Services Tax scam, and was later arrested in connection with the money laundering case on February 20.
Haryana DGP Relieved of Duties Following Controversial Suicide Note
The Haryana government has relieved Shatrujeet Kapur from his position as Director General of Police, following his mention in a suicide note left by Indian Police Service officer Y Puran Kumar.
Kumar was found dead on October 7 after reportedly taking his own life at his home in Chandigarh's Sector 11, with authorities confirming it as a suicide.
In a note discovered at the scene, Kumar implicated 11 current and former officers, including Kapur, alleging caste-based discrimination.
After being placed on leave for two months starting October 14, Kapur has now been officially removed from his role as DGP and reassigned as the chairman of the Haryana Police Housing Corporation.