Iran War Shadow: Livelihood Under Pressure in Post-MGREGA Rural India?

April 6, 2026 at 12:43 PM IST

In December 2025, the Indian government repealed the MGNREGA Act, the world's largest rural job guarantee plan, and brought in a new Act in its place -- Viksit Bharat Guaranteed Rozgar and Ajeevika Mission - Gramin (VB-G RAM G). A quarter has passed, but there is sign of the the new plan hitting off the ground. The Ministry of Rural Development recently informed Parliament it is still working the modalities of implementation. The summer crop has already been harvested and work opportunities are drying up as the economic impact of the Iran war spreads to rural India. Meanwhile, many migrant labourers are also returning home, amid LPG shortage and loss of jobs in cities. Is there a pressure on livelihood in rural India, especially in poorer states that have been heavily MGNREGA-dependant in the past.

Dr Satya Narayan Mohanty a former secretary in the Indian government who also was Senior Advisor at Planning Commission for MGNREGA, joins Rajesh Mahapatra to weigh in.