Declining dependence

Falling MGNREGA demand is a positive sign

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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 midyear 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 pre-Covid levels of 2019-20).