India Replaces MGNREGA with VB-G RAM G
Analysis based on 14 articles · First reported Dec 20, 2025 · Last updated Dec 20, 2025
The legislative changes in India, particularly the replacement of the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA) with the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, are expected to have a negative impact on rural livelihoods and potentially increase social unrest, which could affect the overall economic stability of India. The political opposition from the India — Indian National Congress and its leaders like Sonia Gandhi and Rahul Gandhi indicates potential for prolonged political contention, which can create uncertainty in the market.
Sonia Gandhi, a prominent leader of the India — Indian National Congress, has sharply criticized the Narendra Modi-led government for 'bulldozing' the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA) and replacing it with the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 (VB-G RAM G Bill). She alleges that the new bill, passed without consensus or consultation, undermines the rights of rural poor, farmers, and landless workers, calling it an 'assault on rural livelihoods' and a 'black law'. Sonia Gandhi recalled the original MGNREGA's passage under former Prime Minister Manmohan Singh as a revolutionary step that provided livelihood security and strengthened gram panchayats. The India — Indian National Congress, including leaders like Rahul Gandhi and Priyanka Gandhi, has vowed nationwide protests against the VB-G RAM G Bill, which they claim centralizes decision-making and ignores rural interests. The new legislation also increases states' funding share and enhances guaranteed wage employment.
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