The Viksit Bharat‑Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, reduces the guaranteed days of wage employment per household per year to:

The Bill cuts the guarantee from 100 days (under MGNREGA) to 75 days per year. Relevant for GS3.

Explain how the consolidation of over 40 labour statutes into four Labour Codes impacts informal workers in rural India.

Focus on reduced compliance burden for enterprises, potential erosion of sector‑specific protections, and implications for social security coverage of informal workers. Relevant for GS3.

Critically evaluate the trade‑off between labour market flexibility and social protection in the context of the Viksit Bharat‑Guarantee Bill replacing MGNREGA.

Structure the essay around (i) objectives of flexibility and fiscal prudence, (ii) constitutional and policy commitments to livelihood, (iii) impact on informal workers and inequality, and (iv) recommendations for a hybrid model. Relevant for GS3.

New Labour Codes and Viksit Bharat Bill Re...

The government has replaced MGNREGA with the Viksit Bharat‑Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 and introduced consolidated Labour Codes, prompting concerns over the welfare of informal and rural workers. While officials claim that inequality has lessened since the early 2010s, data‑comparability issues make it difficult to gauge the true impact, a matter of relevance for UPSC candidates studying economic and policy reforms.

The government has recently overhauled its labour and rural‑employment architecture by rolling out the Labour Codes and enacting the Viksit Bharat‑Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 . The new law replaces the long‑standing Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) , raising concerns about the welfare of informal workers and the broader rural populace. Key Developments Consolidation of over 40 labour statutes into four Labour Codes aimed at easing regulatory burden on enterprises. Passage of the Viksit Bharat‑Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 , which repeals MGNREGA and introduces a new employment guarantee mechanism. Official narrative asserts that inequality is now a lesser concern compared with the early 2010s, despite persistent data‑quality issues. Recognition that data comparability challenges hinder a clear assessment of the impact of these reforms. Important Facts • The Labour Codes were operationalised in 2024, covering wages, social security, occupational safety and industrial relations. • The Viksit Bharat‑Guarantee Bill, introduced in 2025, promises a flexible, demand‑driven employment model, but reduces the guaranteed days of work from 100 to 75 per year. • Critics argue that the shift may dilute the social safety net for informal workers , who constitute roughly 90% of India’s workforce. UPSC Relevance Understanding these policy shifts is crucial for GS‑3 (Economy) and GS‑2 (Polity) papers. The reforms illustrate the government's approach to labour market liberalisation, fiscal prudence, and rural development. Aspirants should analyse the trade‑off between ease of doing business and social protection, and assess how the narrative of reduced inequality aligns with ground‑level realities. Way Forward • Strengthen monitoring mechanisms to ensure that the new employment guarantee delivers real wages to the rural poor. • Address data comparability by standardising survey methodologies, enabling reliable impact assessment. • Consider hybrid models that retain the core protective features of MGNREGA while incorporating the flexibility envisioned in the Viksit Bharat‑Guarantee Bill.

<p>The government has recently overhauled its labour and rural‑employment architecture by rolling out the <span class="key-term" data-definition="Labour Codes – a set of four consolidated statutes that replace numerous older labour laws, aimed at simplifying compliance and improving labour market flexibility (GS3: Economy)">Labour Codes</span> and enacting the <span class="key-term" data-definition="Viksit Bharat‑Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 – legislation that supersedes MGNREGA, promising guaranteed rural employment under a re‑designed framework (GS3: Economy)">Viksit Bharat‑Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025</span>. The new law replaces the long‑standing <span class="key-term" data-definition="Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) – flagship scheme guaranteeing 100 days of wage employment per year to rural households (GS3: Economy)">Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)</span>, raising concerns about the welfare of <span class="key-term" data-definition="Informal workers – persons employed in unregistered, low‑skill or low‑pay jobs without statutory social security benefits (GS3: Economy)">informal workers</span> and the broader rural populace.</p> <h3>Key Developments</h3> <ul> <li>Consolidation of over 40 labour statutes into four <strong>Labour Codes</strong> aimed at easing regulatory burden on enterprises.</li> <li>Passage of the <strong>Viksit Bharat‑Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025</strong>, which repeals MGNREGA and introduces a new employment guarantee mechanism.</li> <li>Official narrative asserts that <span class="key-term" data-definition="Inequality – the gap in income, wealth, or access to services among different sections of society (GS3: Economy)">inequality</span> is now a lesser concern compared with the early 2010s, despite persistent data‑quality issues.</li> <li>Recognition that <span class="key-term" data-definition="Data comparability – the ability to compare statistical indicators across time periods without methodological distortions (GS3: Economy)">data comparability</span> challenges hinder a clear assessment of the impact of these reforms.</li> </ul> <h3>Important Facts</h3> <p>• The <strong>Labour Codes</strong> were operationalised in 2024, covering wages, social security, occupational safety and industrial relations. • The <strong>Viksit Bharat‑Guarantee</strong> Bill, introduced in 2025, promises a flexible, demand‑driven employment model, but reduces the guaranteed days of work from 100 to 75 per year. • Critics argue that the shift may dilute the social safety net for <span class="key-term" data-definition="Informal workers – persons employed in unregistered, low‑skill or low‑pay jobs without statutory social security benefits (GS3: Economy)">informal workers</span>, who constitute roughly 90% of India’s workforce.</p> <h3>UPSC Relevance</h3> <p>Understanding these policy shifts is crucial for GS‑3 (Economy) and GS‑2 (Polity) papers. The reforms illustrate the government's approach to labour market liberalisation, fiscal prudence, and rural development. Aspirants should analyse the trade‑off between ease of doing business and social protection, and assess how the narrative of reduced <span class="key-term" data-definition="Inequality – the gap in income, wealth, or access to services among different sections of society (GS3: Economy)">inequality</span> aligns with ground‑level realities.</p> <h3>Way Forward</h3> <p>• Strengthen monitoring mechanisms to ensure that the new employment guarantee delivers real wages to the rural poor. • Address <span class="key-term" data-definition="Data comparability – the ability to compare statistical indicators across time periods without methodological distortions (GS3: Economy)">data comparability</span> by standardising survey methodologies, enabling reliable impact assessment. • Consider hybrid models that retain the core protective features of MGNREGA while incorporating the flexibility envisioned in the <strong>Viksit Bharat‑Guarantee</strong> Bill.</p>

Quick Reference

Key Insight

Labour Code overhaul and Viksit Bharat Bill reshape rural employment guarantees, testing India’s social safety net.

Key Facts

Four Labour Codes (Wages, Social Security, Occupational Safety, Industrial Relations) consolidated >40 statutes, operationalised in 2024.
Viksit Bharat‑Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 repealed MGNREGA and reduced guaranteed work days from 100 to 75 per year.
MGNREGA (2005) guaranteed 100 days of wage employment to each rural household; it was a flagship right‑to‑livelihood scheme.
Informal sector accounts for roughly 90% of India’s total workforce, making it the primary group affected by the reforms.
The new Bill adopts a demand‑driven, flexible employment model, raising concerns about dilution of the social safety net.
Data comparability challenges (methodological changes in surveys) impede accurate assessment of post‑reform inequality trends.
Constitutional relevance: Right to livelihood under Article 21 and Directive Principle of State Policy (Article 41) on securing employment.

Background

The Labour Code reforms aim to simplify compliance and boost ease of doing business, while the Viksit Bharat‑Guarantee Bill seeks to redesign rural employment guarantees. Both intersect with UPSC themes of labour market liberalisation, fiscal prudence, and the constitutional mandate to provide livelihood and reduce inequality.

UPSC Syllabus

Essay — Economy, Development and Inequality
Prelims_GS — Sustainable Development and Inclusion
GS1 — Poverty and Developmental Issues

Mains Angle

In GS‑3 (Economy) or GS‑2 (Polity) answers, discuss the trade‑off between labour market flexibility and social protection, evaluating whether the new framework balances growth with the constitutional right to livelihood.

Key Facts

Background & Context

UPSC Syllabus Connections

Mains Answer Angle

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Prelims MCQ

Mains Short Answer

Mains Essay

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Key Insight

Key Facts

Background

UPSC Syllabus

Mains Angle

New Labour Codes and Viksit Bharat Bill Replace MGNREGA – Implications for Rural Informal Workers

Overview

Key Facts

Background & Context

UPSC Syllabus Connections

Mains Answer Angle

Full Article

Analysis

Practice Questions

Prelims MCQ

Mains Short Answer

Mains Essay

Quick Reference

Key Insight

Key Facts

Background

UPSC Syllabus

Mains Angle