NEW DELHI: India has introduced legislation to expand its 20-year-old rural employment programme by increasing the number of guaranteed workdays. The proposed bill would raise employment from 100 to 125 days per household annually for unskilled manual labour.
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Prime Minister Narendra Modi’s government has allocated 860 billion rupees ($9.5 billion) for the scheme for the current fiscal year, ending March 31, 2026. Officials said the expansion aligns with the government’s long-term goal of making India a developed economy by the 100th anniversary of independence in 2047.
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There’s much more to REMOVING Mahatma Gandhi’s name from the landmark employment guarantee scheme.
This beautifully crafted Scheme by development economist Prof. Jean Dreze, to address the agrarian, rural distress and guarantee jobs and… pic.twitter.com/qHapbsi3fu
— Raju Parulekar (@rajuparulekar) December 16, 2025
The bill focuses on generating employment through infrastructure projects, including rural roads and water supply systems. It also incorporates measures to address the effects of extreme weather in rural areas.
The government has revised the funding mechanism for the scheme, moving from open-ended allocations based on demand to a budgeted expenditure model tied to fiscal projections. Officials say this change aims to ensure financial sustainability while continuing to meet rural employment needs.
However, opposition leaders have expressed concerns over plans to remove Mahatma Gandhi’s name from the programme, arguing that it undermines the historical significance of India’s independence movement. The proposal is expected to spark debate in parliament before the bill is passed.
Supporters of the expansion argue that the increased workdays and targeted infrastructure projects will boost rural livelihoods, provide stable income for households, and enhance resilience to climate-related challenges.
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The legislation represents a significant update to one of India’s flagship social welfare programmes, which has historically played a crucial role in providing guaranteed employment and reducing rural poverty.