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Congress to Launch ‘Save MGNREGA Struggle’, Challenge New GRG Law in Court

by Economy India
January 3, 2026
Reading Time: 8 mins read
Congress to Launch ‘Save MGNREGA Struggle’, Challenge New GRG Law in Court

Congress to Launch ‘Save MGNREGA Struggle’, Challenge New GRG Law in Court

SHARESHARESHARESHARE
Rural employment guarantee at centre of nationwide agitation from January 8; Congress calls MGNREGA “economic lifeline of rural India”

New Delhi (Economy India): The Congress on Saturday announced the launch of a nationwide campaign titled ‘Save MGNREGA Struggle’, beginning January 8, aimed at pressing for the restoration and strengthening of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and opposing the newly introduced GRG Act, which the party plans to challenge in court.

The campaign will span village, district, state, and national levels, and will include four major public rallies across different regions of the country, according to party leaders. The Congress has positioned the agitation as a movement to defend rural livelihoods, employment security, and constitutional guarantees rather than a purely political protest.

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Congress to Launch ‘Save MGNREGA Struggle’, Challenge New GRG Law in Court
Congress to Launch ‘Save MGNREGA Struggle’, Challenge New GRG Law in Court

MGNREGA Under Pressure, Says Congress

The Congress has argued that MGNREGA, which provides a legal guarantee of 100 days of wage employment to rural households, is being steadily weakened through reduced allocations, delayed payments, and administrative changes.

Party leaders said the new GRG Act undermines the core principle of MGNREGA by diluting the statutory right to work and replacing it with a discretionary framework.

“MGNREGA is not charity; it is a legal entitlement,” the Congress said in a statement. “Any attempt to weaken this right strikes at the heart of rural economic security and social justice.”

Nationwide Campaign Structure

According to the party’s roadmap, the Save MGNREGA Struggle will be conducted in multiple phases:

Village and Panchayat Level

  • Awareness drives among job card holders
  • Gram Sabha discussions on wage delays and lack of work
  • Collection of testimonies from rural workers

District and State Level

  • Demonstrations at district headquarters
  • Memorandums to state administrations
  • Engagement with labour unions and civil society groups

National Level

  • Four large-scale public meetings
  • Submission of demands to constitutional authorities
  • Legal action against the GRG Act

The Congress believes that grassroots mobilisation will highlight the on-ground realities faced by rural workers, particularly women, Scheduled Castes, Scheduled Tribes, and migrant labourers.

Legal Challenge to the GRG Act

A key pillar of the Congress strategy is a judicial challenge to the GRG Act. Party sources said senior constitutional experts are examining the law to assess its compatibility with:

  • The Right to Life and Dignity under Article 21
  • Directive Principles of State Policy
  • India’s commitment to social justice and inclusive growth

The Congress maintains that MGNREGA is not merely a welfare scheme but a rights-based legislation that ensures minimum income security during periods of distress, drought, or economic slowdown.

“The new law replaces accountability with discretion,” party leaders argued. “That is unacceptable in a country where rural employment remains fragile.”

Why MGNREGA Matters to Rural India

Introduced in 2005, MGNREGA has been widely regarded as one of the world’s largest social security programmes. Economists and development experts have repeatedly highlighted its role in:

  • Reducing rural poverty and distress migration
  • Supporting women’s workforce participation
  • Creating durable rural assets
  • Stabilising rural demand during economic shocks

During the Covid-19 pandemic, MGNREGA emerged as a critical shock absorber, absorbing millions of returning migrant workers and preventing a deeper rural crisis.

Congress leaders argue that weakening MGNREGA at a time of global economic uncertainty could have serious consequences for rural consumption, employment, and social stability.

Congress to Launch ‘Save MGNREGA Struggle’, Challenge New GRG Law in Court
Congress to Launch ‘Save MGNREGA Struggle’, Challenge New GRG Law in Court

Concerns Over Budgetary Allocation and Wage Delays

The Congress has consistently raised concerns over what it describes as insufficient budgetary support for MGNREGA.

Key issues highlighted include:

  • Delays in wage payments extending beyond statutory limits
  • Pending dues running into thousands of crores
  • Reduction in real wages when adjusted for inflation
  • Increased dependence on digital systems that exclude vulnerable workers

“These are not isolated administrative lapses,” the party said. “They reflect a systematic deprioritisation of rural employment.”

Political and Economic Implications

Political analysts view the Save MGNREGA Struggle as part of a broader attempt by the Congress to re-centre economic justice and employment in the national discourse.

MGNREGA remains a politically sensitive issue, especially in rural and agrarian states, where it directly affects household incomes. Analysts say the movement could:

  • Revive debate on rights-based welfare policies
  • Put pressure on the government over rural distress
  • Reposition employment as a central electoral issue

At the same time, economists caution that any reform to MGNREGA must balance fiscal sustainability with social protection.

Government’s Position So Far

While the government has not responded to the Congress announcement, it has previously defended reforms in rural employment schemes, stating that:

  • Technology-driven processes enhance transparency
  • Direct benefit transfers reduce leakages
  • Integrated social security models are more efficient

Government officials have argued that reforms aim to modernise welfare delivery rather than dismantle social protection.

However, critics maintain that excessive digitisation and reduced flexibility disproportionately affect the poorest households.

Voices from the Ground

Rural workers’ organisations have expressed cautious support for the Congress campaign, saying the issues raised resonate with everyday realities.

“Work is not always available when needed, and payments are often delayed,” said a rural labour activist from eastern India. “Any dilution of MGNREGA will hurt the poorest first.”

Women workers, who form a significant portion of the MGNREGA workforce, are expected to be central to the movement.

Broader Debate on Welfare and Growth

The controversy around MGNREGA reflects a larger debate in India’s economic policy framework: how to balance growth-driven development with rights-based welfare.

Supporters argue that MGNREGA strengthens demand, supports rural infrastructure, and provides dignity of labour. Critics say it needs restructuring to improve efficiency and outcomes.

The Congress has made it clear that it sees MGNREGA as non-negotiable in India’s social contract.

What Lies Ahead

As the January 8 launch approaches, the Save MGNREGA Struggle is expected to intensify political and policy debate across the country.

Key questions remain:

  • Will the movement gain mass traction at the grassroots level?
  • How will the judiciary respond to the legal challenge?
  • Will the government reconsider aspects of the GRG Act?

What is clear is that MGNREGA, two decades after its launch, remains central to India’s rural economy and political discourse.

For now, the Congress appears determined to make rural employment and economic rights a defining issue in the months ahead.

(Economy India)

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Source: Economy India
Tags: Congress Save MGNREGA protestGRG ActIndian labour policyMGNREGA newsrural economy Indiarural employment guarantee
Economy India

Economy India

Economy India is one of the largest media on the Indian economy. It provides updates on economy, business and corporates and allied affairs of the Indian economy. It features news, views, interviews, articles on various subject matters related to the economy and business world.

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