Demand for work under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has shown a sharp and sustained drop, indicating improving economic conditions in rural India. According to the official data, the number of households seeking work under the law fell 35.3 per cent in October, compared to the same month last year. Moreover, this is one of the steepest mid-year declines in recent years. Over the longer term, too, the number of rural workers relying on the scheme dropped from the pandemic peak of 111.9 million in 2020-21 to around 78.8 million in 2024-25 (returning to
Tuesday, December 09, 2025 | 01:49 PM ISTहिंदी में पढें
Declining dependence: Declining MGNREGA demand is a positive sign
This improvement is attributed to multiple factors, including stronger real wages in both agricultural and non-agricultural work, increased tractor and fertiliser sales, healthy growth in farm credit
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Given these developments, the policy focus should now be on sustaining the positive momentum in rural labour markets. Continued improvement in rural roads, connectivity, and irrigation, along with targeted skilling programmes, can help deepen non-farm employment.
