NREGA’s Role in Boosting Rural Infrastructure and Livelihoods

By Team Asianet Newsable | First Published Oct 25, 2024, 1:56 PM IST

The National Rural Employment Guarantee Act was passed with the vision to provide legal entitlement to employment for rural households.

Introduction

The National Rural Employment Guarantee Act (NREGA), now known as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), was launched in 2005 with the primary aim of improving the livelihood security of rural households in India. The scheme guarantees 100 days of paid employment to unskilled workers, empowering them economically and contributing to the development of rural infrastructure. Over the years, NREGA has played a crucial role in boosting rural development, reducing poverty, and ensuring inclusive growth in India's vast rural landscapes.

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At the same time, schemes like the Atal Pension Yojana (APY) complement NREGA’s objectives by providing financial security to rural workers in their old age. This article will explore how NREGA has fostered rural infrastructure and improved livelihoods, and how pension schemes like APY contribute to the long-term stability of rural populations.

NREGA: A Brief Overview

The National Rural Employment Guarantee Act was passed with the vision to provide legal entitlement to employment for rural households. It aims to create sustainable rural assets and reduce migration to urban areas in search of work. NREGA covers all districts of India except those with 100% urban population.

Key features of NREGA include:

A legal guarantee of 100 days of employment per year to adult members of rural households willing to do unskilled manual work.
Focus on decentralised planning, with Gram Panchayats playing a critical role in identifying projects and providing employment.
Promoting sustainable development by creating durable assets like roads, irrigation canals, and water conservation projects.
Ensuring social inclusion by prioritising vulnerable groups like Scheduled Castes (SCs), Scheduled Tribes (STs), and women.

The scheme has a wide-reaching impact not just on employment but also on rural infrastructure, which in turn boosts economic activity in rural areas.

Strengthening Rural Infrastructure through NREGA

NREGA has significantly contributed to the development of rural infrastructure across India, which is crucial for overall rural growth. The projects under NREGA primarily focus on public works that have long-term benefits for rural communities. Some of the major areas of infrastructure development under the scheme include:

1. Water Conservation and Irrigation: One of the primary objectives of NREGA is to improve water resources in rural areas. Water conservation and irrigation projects are undertaken to ensure water availability for agriculture, which is the main livelihood source in rural areas. Through check dams, ponds, and canals, NREGA has helped increase irrigation potential, which has a direct impact on agricultural productivity.

2. Rural Roads and Connectivity: Rural roads are essential for the socio-economic development of villages. NREGA projects have helped in constructing all-weather roads that connect remote villages to markets, schools, and healthcare facilities. Improved connectivity boosts local trade and ensures better access to services, thus contributing to the economic development of rural regions.

3. Flood and Drought Mitigation: Many regions in India are prone to natural disasters like floods and droughts. NREGA plays a role in constructing embankments, drainage channels, and water-harvesting structures that mitigate the effects of such disasters. These projects help in reducing the damage caused by natural calamities and contribute to the resilience of rural infrastructure.

4. Land Development: Land development activities under NREGA focus on making unproductive land cultivable. This includes levelling land, planting trees, and constructing farm ponds, all of which help farmers increase their yield and income. By focusing on sustainable land management practices, NREGA contributes to long-term agricultural development in rural areas.

5. Sanitation and Public Health: NREGA has also contributed to improving rural sanitation by constructing toilets and providing access to clean drinking water. This focus on hygiene and public health infrastructure is in line with the government's Swachh Bharat Mission. Healthier environments lead to a healthier workforce, which in turn strengthens rural economies.
By improving infrastructure, NREGA not only provides immediate employment but also creates assets that benefit rural communities for generations. This infrastructure development leads to improved agricultural productivity, better market access, and enhanced quality of life, ensuring a positive feedback loop for rural economies.

Livelihood Enhancement through NREGA

While infrastructure development is a key component of NREGA, the scheme’s primary focus remains on improving the livelihoods of rural households. The provision of guaranteed employment is crucial in the context of seasonal unemployment and agricultural distress, common issues in rural India. NREGA’s role in boosting livelihoods can be viewed through the following lenses:

1. Employment Security: NREGA ensures that rural households have access to paid work, which acts as a safety net during times of economic distress. In regions affected by droughts, floods, or poor agricultural yield, the employment provided by NREGA helps rural families survive by ensuring a steady income. This reduces the dependency on exploitative labour markets and stabilises rural economies.

2. Empowering Women: One of the most significant aspects of NREGA is its impact on women’s empowerment. The scheme mandates that at least one-third of the beneficiaries should be women. Over the years, the participation of women has far exceeded this minimum requirement, giving them access to income and improving their social status. NREGA has also led to financial inclusion by encouraging women to open bank accounts, giving them more control over their earnings.

3. Skill Development and Migration Control: While NREGA is primarily for unskilled workers, many projects involve skill-building components. For example, tasks related to water conservation or land development often provide workers with skills that can be used for other employment opportunities. Furthermore, by providing local employment, NREGA reduces the need for rural-to-urban migration, allowing families to remain in their villages and contribute to local economies.

4. Income Redistribution and Social Equity: NREGA has a significant redistributive effect. The employment guarantee benefits marginalised communities, particularly SCs and STs, who are often left out of economic growth. By offering a fixed wage and equal pay for both men and women, the scheme ensures that disadvantaged groups receive fair compensation for their labour, thus addressing social inequities.

The Role of Atal Pension Yojana in Securing Livelihoods

While NREGA addresses the immediate employment needs of rural households, long-term financial security is another crucial aspect of rural development. The Atal Pension Yojana (APY) was launched to provide a pension for unorganised sector workers, which includes the vast majority of NREGA beneficiaries.

APY offers a guaranteed pension to subscribers, starting from Rs 1,000 to Rs 5,000 per month, based on the contributions made. The scheme is primarily targeted at workers in the informal sector who do not have access to formal pension systems.

1. Complementing NREGA: APY complements NREGA by providing a safety net for rural workers in their old age. While NREGA offers employment and income during working years, APY ensures that these workers have some form of financial security when they are no longer able to work. This dual approach—employment through NREGA and old-age security through APY—ensures a holistic livelihood strategy for rural populations.

2. Encouraging Financial Inclusion: Like NREGA, APY encourages financial inclusion by bringing rural workers into the formal banking system. The scheme is linked to bank accounts, ensuring that rural workers develop a habit of saving and planning for their future.

3. Fostering Long-Term Security: For many NREGA workers, their earnings are crucial for day-to-day survival. APY provides them with an opportunity to secure their old age, ensuring that they do not fall into poverty once they are no longer able to work. This long-term security is essential for reducing vulnerability and ensuring sustainable rural development.

Conclusion

NREGA has been instrumental in transforming rural India by providing employment, improving infrastructure, and fostering economic growth. By creating durable assets and enhancing livelihoods, NREGA has ensured that rural communities are not only empowered in the short term but are also equipped with the resources necessary for long-term development. Its role in uplifting the marginalised sections of society, particularly women and disadvantaged communities, is undeniable.

The Atal Pension Yojana adds another layer of security by offering rural workers financial stability in their old age. Together, NREGA and APY present a comprehensive approach to rural development, focusing on both immediate employment needs and long-term financial security. By addressing these two critical aspects, these schemes contribute significantly to reducing poverty and ensuring sustainable growth in rural India.

In the years to come, with effective implementation and continuous improvements, NREGA and APY will continue to play a pivotal role in shaping a prosperous rural India, where livelihoods are secure, and infrastructure is robust.

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