Volume 3, ISSUE1/2012 - Review of Applied Socio-Economic ...

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ISSN: 2247-6172
ISSN-L: 2247-6172
Review of Applied Socio- Economic Research
(Volume 3, Issue 1/ 2012 ), pp. 22
URL: http://www.reaser.eu
e-mail: editors@reaser.eu
Indian experience of sustainable and inclusive economic growth –
an evaluation of Mahatma Gandhi National Rural Employment
Guarantee Scheme
D.S.Bhupal 1+
1 Agro-Economic Research Centre, University of Delhi
Abstract: In India the rural population increased from 299 million in 1951 to 833 million in 2011, cultivators and
agricultural workers from 97 million to 263 million, whereas the share of agriculture in GDP decreased from 60-70%
in 1950s, to 19% in 2004-05 and less than 14% in 2011-12. The average size of land holdings has decreased to 1.2
hectares. The 67% holdings are below 0.4 hectare and 84% are below 2 hectares. There is underemployment of work
force. This unorganized section of society is the most vulnerable. To uplift them various schemes were started. The
amount spent on which has increased from 10.46 per cent in 2003-04 to 19.46 per cent in 2009-10. But the outcome of
these programmes has not been very encouraging.
To address rural unemployment the Mahatma Gandhi National Rural Employment Guarantee Act guarantees 100 days
of wage employment in a year to adult members of a rural household on demand. Either work has to be provided within
15 days or an unemployment allowance if work is not provided for any reason.
Based upon the data collected from 5 districts of Haryana and secondary data downloaded from the website, this paper
examines as to how far the scheme has been able to address the issue of unemployment of different sections. What
impact it has made on the general wage rate? How far the food security has been improved? Most importantly, whether
the assets created with the work done are viable and sustainable? The findings suggest that food security has improved,
different sections are engaged gainfully and the assets are useful. But many more things need to be done.
Key words: rural employment guarantee, food security, income, gender and social equality
1. Introduction
After liberalization in the nineties growth rate increased to 8-9 % before the crisis of 2008 and to around 7%
thereafter. But key areas were deprived of substantial growth benefits. Agriculture which provided livelihood
to about 2/3 rd population was the worst sufferer. The employment, health, education, shelter and other social
sectors remained unattended and devoid of public investment.
Estimates of the total number of unemployed people in India show an increasing trend. The unemployment
increased from 5.99 per cent in 1993-94 to 7.32 per cent in 1999-2000 and to 8.28 per cent in 2004-05. 2
Further, as per 66 th Round of NSSO, the employment has actually declined in the five-year period ended
2009-10 to 39.2 per cent from 42 per cent in 2004-05. The NSSO data also show increase in the number of
casual workers 3 by 21.9 million, while growth in the number of regular workers nearly halved between 2004-
05 and 2009-10, compared with previous 5 year period, meaning a substantial shift in the structure of labour
force. Moreover, young people accounted for 53 percent of the total unemployed in the country. In the
absence of reliable socio-economic security of any kind, the majority of Indians suffer because of meager
+ Fellow, Agro-Economic Research Centre, University of Delhi, Delhi–1100 07, India; ds_bhupal@hotmail.com
2 The Economic Survey of India.
3 Casual workers are employees who do not enjoy the same benefits and security as tenured employees.