Comprehensive Overview of the Ministry of Rural Development’s Key Initiatives

Policy Update
Shivashish Narayan

Ministry of Rural Development                   

The Ministry of Rural Development, comprising the Department of Rural Development and the Department of Land Resources, is the key agency driving development and welfare initiatives in rural India. Its mission focuses on sustainable and inclusive growth through poverty eradication, livelihood creation and infrastructure development, with a special emphasis on improving the quality of life for disadvantaged sections.

Major schemes like MGNREGA, NRLM, PMAY-G and PMGSY address employment, housing and connectivity needs. For FY 2024-25, the Ministry of Rural Development has received a total allocation of ₹1,80,233 crore. Within this, the Department of Rural Development has been assigned ₹1,77,566 crore, reflecting a 4% increase over the revised estimates of 2023-24. The Department of Land Resources has been allocated ₹2,667 crore, marking a significant 41% increase from the previous year’s revised estimates. These allocations highlight the government’s continued commitment to rural development, with enhanced funding aimed at addressing critical areas in rural welfare, resource management and land reforms.

A. Department of Rural Development

The Ministry of Rural Development (MoRD) is committed to fostering sustainable and inclusive rural growth through integrated interventions. Its key objectives include uplifting deprived rural households by providing multidimensional support such as assets, livelihoods, infrastructure and services. From 2014-15 to 2024-25, budget allocations for the department have seen an annual growth of 9%. In 2024-25, the MGNREGS and PMAY-G make up nearly 80% of the department’s budget, at 48% and 31% respectively. Other notable allocations include the NRLM at 8%, PMGSY at 7% and the National Social Assistance Programme (NSAP) at 5%.

1.Mahatma Gandhi National Rural Employment Guarantee Act

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), enacted in 2005, Earlier known Sampoorna Grameen Rozgar Yojana (SGRY), launched in 2001, SGRY was merged into MGNREGA in 2006. The Act guarantees 100 days of wage employment per financial year to rural households willing to perform unskilled manual work. Financial support is shared between the Central and State Governments in a 90:10 ratio. For FY 2024-25, the MGNREGS budget allocation is ₹86,000 crore. This represents an increase of ₹26,000 crore from the previous year’s allocation of ₹60,000 crore. However, it remains ₹19,297 crore short of the actual expenditure of ₹1.05 lakh crore in FY 2023-24, indicating a budgetary gap that could impact the scheme’s capacity to meet growing demand.

2.National Rural Livelihood Mission

The National Rural Livelihood Mission (NRLM), launched in 2011 and later renamed as Deendayal Antyodaya Yojana – National Rural Livelihood Mission (DAY-NRLM) in 2016, is a flagship program aimed at eradicating rural poverty by 2023-24. The mission focuses on organizing rural poor households, especially women, into Self-Help Groups (SHGs) to promote financial inclusion and sustainable livelihoods. NRLM builds on the framework of the earlier Swarnjayanti Gram Swarozgar Yojana (SGSY). For the FY 2023-24, the programme met 81% of its banking linkage target, supporting 33.5 lakh SHGs of the targeted 41 lakh and achieved 83% of its disbursement goal, reaching ₹1,19,270 crore out of ₹1,43,110 crore.

However, in the current fiscal year, 2024-25, budget utilisation has been slow with only 23% of SHGs reached for banking linkage and 12% of the disbursement target achieved as of mid-year. Since its inception, DAY-NRLM has mobilized significant numbers of households and SHGs across socially disadvantaged communities. By June 2024, the scheme had included 1.97 crore Scheduled Caste (SC), 1.22 crore Scheduled Tribe (ST) and 80 lakh Minority households and mobilized 17.88 lakh SC, 11.20 lakh ST and 6.88 lakh Minority SHGs, underscoring its extensive reach and impact in rural poverty alleviation. Poverty Alleviation Scheme in Rural India 

  • Aajeevika

National Rural Livelihoods Mission (NRLM) – Aajeevika, launched by the Ministry of Rural Development in June 2011, is a restructured version of the Swarna Jayanti Gram Swarozgar Yojna (SGSY). It aims to empower 100 million rural poor across 6 lakh villages by enhancing their entrepreneurial abilities through support structures. Unlike SGSY’s allocation-based approach, NRLM adopts a demand-driven strategy, allowing states to plan and implement through State Perspective Implementation Plans (SPIPs) and Annual Action Plans (AAPs). NRLM uses Participatory Identification of Poor (PIP) to target beneficiaries and is implemented through dedicated national, state, district and block-level units.

  • Mahila Kisan Sashaktikaran Pariyojana

Mahila Kisan Sashaktikaran Pariyojna (MKSP), a subcomponent of the National Rural Livelihoods Mission (NRLM), aims to empower women in agriculture by improving their livelihoods and participation. Launched by the Government of India, MKSP supports rural women engaged in farming, who often face exclusion from agricultural resources and services. The scheme focuses on sustainable agriculture practices, capacity building and community institution development. Key objectives include creating agricultural livelihood opportunities, improving women’s access to resources, enhancing their managerial skills and promoting bio-diversity. MKSP targets marginalized women farmers, providing training on sustainable practices like soil conservation, resource management and resilience to climate change.

  • Deen Dayal Upadhyaya Grameen Kaushalya Yojana

Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) is a key initiative under the National Rural Livelihood Mission (NRLM), aimed at empowering rural youth from poor households through skill development and sustainable employment. Launched in 2014, DDU-GKY focuses on providing jobs with regular wages, aligning with the ‘Make in India’ campaign. From 2014-15 to 2021-22, DDU-GKY trained 11,52,657 candidates, of whom 7,15,834 secured jobs.

For FY 2021-22, the scheme set ambitious targets to train 2.8 lakh candidates and place 1.96 lakh. However, COVID-19-related disruptions led to training centres being closed, which slowed progress. Consequently, 52,060 candidates were trained and 24,178 were placed by February 2022.Review of Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) | Ministry of Rural Development | Government of India 

Despite these setbacks, the scheme maintained strong interest among rural youth with over 32.22 lakh candidates registered for training. As of March 2022, 1.28 lakh candidates were training at centres nationwide, underscoring the scheme’s continued relevance and reach in empowering rural youth across India.

3.PRADHAN MANTRI AWAAS YOJANA- GRAMIN

The Pradhan Mantri Awas Yojana-Gramin (PMAY-G) was launched in 2016 to ensure housing for all in rural India by 2022 targeting a housing shortage of 4.03 crore homes identified in the  Socio Economic and Caste Census (SECC) 2011. With a budget allocation of ₹54,500 crore for 2024-25 representing a 70% increase over the previous year, the scheme aims to build 2.95 crore pucca houses across two phases. However, as of July 2024, only 2.61 crore houses have been completed indicating a completion rate of 89% of the target.

Notably, about 41% of the allocated funds remain unutilized due to delays in fund transfers, slow progress in construction and land availability issues for beneficiaries. The financial assistance for households is set at ₹1.2 lakh for plains and ₹1.3 lakh for hilly areas, with plans for increases to ₹1.8 lakh and ₹2 lakh, respectively, to offset rising costs. Additionally, beneficiaries can access loans of up to ₹70,000 with a 3% interest subsidy to supplement their housing expenses. Despite the progress made, challenges in implementation and fund utilization must be addressed to achieve the program’s objectives effectively.

4.PRADHAN MANTRI GRAM SADAK YOJANA

The Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched on December 25, 2000, to enhance rural connectivity through all-weather roads. The program’s budget for 2024-25 stands at ₹12,000 crore marking a 29% decrease from the revised estimates of 2023-24. The scheme operates through four verticals: PMGSY-I for rural habitations with populations above 250, PMGSY-II for upgrading main rural routes, PMGSY-III for consolidating market-connected routes and the Road Connectivity Project for Left Wing Extremism Affected Areas (RCPLWEA) launched in 2016 for specific areas.

As of July 2024, 92% of the 8,22,351 km sanctioned roads have been completed. Completion rates vary across verticals with PMGSY-I at 97% and PMGSY-II at 98%, while PMGSY-III and RCPLWEA lag at 67% and 74% completion, respectively. The Standing Committee in 2023 urged the prioritization of uncompleted projects and suggested updating population data to ensure accurate rural coverage. Demand for Grants 2024-25 Analysis – Rural Development 

5.NATIONAL SOCIAL ASSISTANCE PROGRAMME

The National Social Assistance Programme (NSAP), launched in 1995, provides financial support to economically vulnerable groups, including the destitute, aged, sick and disabled. NSAP encompasses five schemes: the Indira Gandhi National Old Age Pension Scheme (IGNOAPS), Indira Gandhi National Widow Pension Scheme (IGNWPS), Indira Gandhi National Disability Pension Scheme (IGNDPS), National Family Benefit Scheme and the Annapurna scheme. In 2024-25, NSAP is allocated ₹9,652 crore, which aligns with the revised estimates for 2023-24. Major allocations include ₹6,645 crore for IGNOAPS, ₹2,027 crore for the widow pension scheme and ₹659 crore for the family benefit scheme.

Despite consistent budgeting, fund utilization under NSAP has varied significantly over the years. Utilization exceeded 90% consistently between 2015-16 and 2019-20 but spiked to an exceptional 461% in 2020-21 due to additional disbursements during the pandemic. In recent years, utilization has normalized, reaching 100% in 2022-23 and 2023-24.

Under IGNOAPS, senior citizens below the poverty line receive ₹200 monthly (up to age 79) and ₹500 thereafter. However, rising costs have prompted calls to increase the pension amount, with several states contributing extra funds, ranging from ₹50 to ₹3,200. The Standing Committee on Rural Development (2023) has recommended revisiting and potentially raising the assistance level.

The 15th Finance Commission also suggested standardized social security spending and regular audits to verify beneficiary lists. A CAG audit (2023) highlighted delays in disbursing funds across various states, citing issues like extended waiting periods from state treasuries to implementing agencies, resulting in delayed or missed pension disbursements. Notably, states like Arunachal Pradesh and Tamil Nadu experienced delays exceeding 200 days, while others like Sikkim faced delays of up to 990 days. This inconsistency has led to sporadic payment schedules, with some states providing benefits quarterly, annually, or on an ad hoc basis, instead of the intended monthly disbursements.

This analysis underscores the need for improved coordination, timely fund transfers and adjustments in assistance amounts to better support vulnerable groups amid changing economic conditions.

6.SHYAMA PRASAD MUKHERJEE RURBAN MISSION

The Shyama Prasad Mukherji Rurban Mission (SPMRM), launched in 2016, aimed to develop rural clusters with urban-like infrastructure while retaining rural character. The mission targeted 300 clusters to enhance local economic growth and provide amenities such as roads, water, sanitation and education. By converging various schemes and utilizing Critical Gap Funding (CGF), SPMRM sought to reduce poverty and bridge rural-urban disparities, fostering sustainable, inclusive development. However, in 2023-24, no funds were allocated to SPMRM as it concluded in March 2022, marking a shift in the budget priorities toward schemes like MGNREGS and PMAY-G.

7.SAANSAD ADARSH GRAM YOJANA

The Saansad Adarsh Gram Yojana (SAGY), launched by the Ministry of Rural Development in 2014, encourages MPs to adopt Gram Panchayats for holistic development. This community-driven scheme prioritizes infrastructure, healthcare, sanitation and livelihood generation, aiming to create model villages. While SAGY does not have a dedicated budget, funds are converged from existing government schemes and resources such as MPLADS (Members of Parliament Local Area Development Scheme), state schemes and CSR funds. Estimated annual expenditures vary by village needs, covering essential development projects and ensuring efficient utilization for impactful, sustainable rural progress in each Gram Panchayat.

8. MISSION ANTYODAYA

Mission Antyodaya, launched in Union Budget 2017-18, is a convergence and accountability framework aimed at alleviating poverty by optimizing the use of resources from 26 central ministries and departments for rural development. With Gram Panchayats as focal points, the mission emphasizes participatory planning and sustainable livelihood development for marginalized households. It involves annual surveys across all Gram Panchayats to assess progress and identify gaps, supporting the creation of comprehensive Gram Panchayat Development Plans (GPDP). Mission Antyodaya aims to ensure effective service delivery and socio-economic transformation, aligning with India’s Sustainable Development Goals (SDGs).

9.DISHA

District Development Coordination and Monitoring Committees (DISHA) were established to improve coordination among elected representatives in Parliament, State Legislatures and Local Governments for timely and effective development. Chaired by the senior-most Member of Parliament (Lok Sabha) from the district, DISHA conducts quarterly reviews of development projects at the district level. These committees ensure convergence and accountability in government schemes by monitoring their progress and facilitating collaboration across ministries and departments. The District Collector acts as the Member Secretary, ensuring that meetings are convened and follow-ups are conducted to address issues raised during discussions.

10.PRADHAN MANTRI GARIB KALYAN YOJANA

Pradhan Mantri Garib Kalyan Yojana (PMGKY) was launched as a comprehensive relief package worth ₹1.70 lakh crore to support the poor amid the COVID-19 pandemic. Key features include an insurance cover of ₹50 lakh for health workers, provision of 5 kg of wheat or rice and 1 kg of pulses for 80 crore beneficiaries monthly and a cash transfer of ₹500 per month to 20 crore women Jan Dhan account holders. The scheme also enhances MNREGA wages and front-loads payments under the PM Kisan scheme to aid farmers. It aims to ensure food security and provide economic relief during the crisis.

B. Department of Land Resources

1.Pradhan Mantri Krishi Sinchai Yojana – Watershed

Pradhan Mantri Krishi Sinchai Yojana (PMKSY) focuses on enhancing irrigation accessibility, agricultural productivity and ensuring sustainable livelihoods, especially in rainfed areas. The scheme employs a ridge-to-valley approach for water conservation and soil management, targeting 85 million hectares of rainfed land. Community participation is emphasized, integrating technology, capacity building and livelihood enhancement. The National Rainfed Area Authority oversees implementation, promoting collaboration across ministries and empowering local institutions. For FY 2024-2025, the allocation has increased to ₹9,339.37 crore, reflecting the government’s commitment to sustainable rural development and water security. PMKSY aims to blend conservation efforts with productivity enhancement, ensuring long-term benefits for farmers.

  • Development Component Integrated Watershed Management Programme (IWMP)

The Integrated Watershed Management Programme (IWMP), now part of the Watershed Development Component of PMKSY (WDC-PMKSY), was launched in 2009-10 and revised as WDC-PMKSY 2.0 for 2021-2026. Aiming to restore rainfed and degraded lands, it focuses on water conservation, sustainable agriculture and community-based livelihood promotion. Key elements include crop diversification, integrated farming, climate adaptation and rejuvenation of springsheds. The program’s funding pattern is 60:40 for most states and up to 90:10 for hilly regions, with the total Central financial outlay being ₹8,134 crore, targeting 49.50 lakh hectares.

  • Neeranchal National Watershed Management Project “Neeranchal”

The Neeranchal National Watershed Management Project, launched in 2015, is a World Bank-assisted initiative aimed at enhancing the Watershed Component of the Pradhan Mantri Krishi Sinchayi Yojana (PMKSY). With a total outlay of ₹2,142.30 crore, Neeranchal focuses on improving rainfed agricultural management, increasing water availability and reducing surface runoff. Implemented across nine states, the project promotes sustainable watershed practices through technical support, institutional changes and community participation. It aims to boost agricultural productivity, improve groundwater recharge and ensure better livelihoods for farmers by fostering equity and inclusiveness in rainfed regions.

2.Digital India Land Records Modernisation Programme 

The Digital India Land Records Modernization Programme (DILRMP) launched in 2016 with 100% central funding aims to modernize and digitize land records across India. It seeks to establish a transparent and real-time land information system that reduces disputes, also prevents fraudulent transactions and improves resource management. Achievements under DILRMP include the computerization of over 95% of land records, digitization of 68% of cadastral maps and the integration of sub-registrar offices. Innovations such as Aadhaar-linked records, Unique Land Parcel Identification Numbers (ULPIN) and e-Court integrations further enhance the system’s accessibility and efficiency for stakeholders.

Conclusion

Ministry of Rural Development plays a crucial role in advancing rural welfare through a variety of initiatives aimed at poverty alleviation, infrastructure development and enhanced livelihoods. With significant budget allocations for programs such as MGNREGA, NRLM and PMAY-G, the Ministry’s efforts reflect a steadfast commitment to improving the quality of life for marginalized communities. Despite challenges in fund utilization and implementation, the ongoing focus on participatory and sustainable practices promises to create lasting impacts. As the Ministry continues to adapt and respond to emerging needs, it remains a vital instrument in driving inclusive growth and fostering resilience in rural India, ultimately contributing to the nation’s overarching development goals.

References

  1. About the Ministry | Ministry of Rural Development | Government of India
  2. Annual Report 2023-24, https://rural.gov.in/sites/default/files/Annual%20Report%202023-24%20English.pdf
  3. IOSR Journal Of Humanities And Social Science (IOSR-JHSS), Volume 19, Issue 10, Ver. II (Oct. 2014), PP 26-30, e-ISSN: 2279-0837, p-ISSN: 2279-0845; www.iosrjournals.org, NREGA: Opportunity and Challenges; Rudra Prasad Roy, https://iosrjournals.org/iosr-jhss/papers/Vol19-issue10/Version-2/F0191022630.pdf
  4. MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE SCHEME (MGNREGS) | Rural Development Department | India
  5. National Rural Livelihood Mission (NRLM)
  6. Swarozgar |Open Government Data (OGD) Platform India
  7. Deendayal Antyodaya Yojana – National Rural Livelihoods Mission
  8. Assam Government, https://asrlms.assam.gov.in/frontimpotentdata/ongoing-projects-4
  9. Deen Dayal Upadhyaya Grameen Kaushalya Yojana
  10. My Scheme, https://www.myscheme.gov.in/hi/schemes/ddugku
  11. PIB;Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY);https://pib.gov.in/PressReleasePage.aspx?PRID=1935711
  12. Pradhan Mantri Awas Yojana- Urban (PMAY-U); https://pmay-urban.gov.in/about
  13.  My Scheme, https://www.myscheme.gov.in/schemes/pmay-g
  14. PIB;PRADHAN MANTRI AWAAS YOJANA- GRAMIN https://pib.gov.in/PressReleseDetailm.aspx?PRID=2003570&reg=3&lang=1
  15. PRADHAN  MANTRI  GRAM  SADAK  YOJANA  PROGRAMME  GUIDELINES; https://omms.nic.in/ReferenceDocs/PMGSY_Guidelines.pdf
  16. My Scheme, https://www.myscheme.gov.in/schemes/pmgsy
  17. The National Social Assistance Programme (NSAP); https://nsap.nic.in/circular.do?method=aboutus
  18. LOK  SABHA UNSTARRED QUESTION NO. 889; NATIONAL SOCIAL ASSISTANCE PROGRAMME, https://sansad.in/getFile/loksabhaquestions/annex/1712/AU889.pdf?source=pqals 
  19. Chapter-1: An introduction to National Social Assistance Programme
  20. Shyama Prasad Mukherji Rurban Mission; https://rurban.gov.in/index.php/public_home/about_usgsc.tab=0
  21. Shyama Prasad Mukherji Rurban Mission
  22. My Scheme, https://www.myscheme.gov.in/schemes/sagy
  23. Saansad Adarsh Gram Yojana (SAGY); Ministry of Rural Development, https://saanjhi.gov.in/AboutUs.aspx
  24. Mission Antyodaya; https://missionantyodaya.nic.in/aboutUs.html
  25. PIB Delhi; https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1897683
  26. Mission Antyodaya Framework; https://rural.gov.in/sites/default/files/MissionAntyodayaFrameworkPRCPresentation16Nov2017.pdf
  27. District Development Coordination and Monitoring Committees; https://disha.gov.in/disha/
  28. District Development Coordination and Monitoring Committees guidelines; https://disha.gov.in/guidelines
  29. My Scheme; https://www.myscheme.gov.in/schemes/pm-gkay 
  30. Watershed Development Component-Pradhan Mantri Krishi Sinchayee Yojana;
  31. https://dolr.gov.in/document-category/watershed-development-component
  32. Watershed Development Component- Prime Minister Krishi Sinchayee Yojna (WDC-PMKSY) | Directorate of Soil Conservation | Government Of Assam, India
  33. Watershed Development Component of PMKSY; https://dolr.gov.in/wdcpmksy/
  34. Pradhan Mantri Krishi Sinchayi Yojana; https://pib.gov.in/newsite/printrelease.aspx?relid=128501
  35. LOK SABHA UNSTARRED QUESTION NO. 814; National Watershed Management Project “Neeranchal”; https://sansad.in/getFile/loksabhaquestions/annex/6/AU814.pdf?source=pqals
  36. Budget 2024: Allocation for MGNREGS lower than last year’s actual expenditure, despite BJP’s poll losses in rural India – The Hindu 

About the Contributor: Shivashish Narayan is an Intern at IMPRI. He is a law graduate from Indore Institute of Law.

Acknowledgement: The author would like to express sincere gratitude to Dr. Arjun Kumar, Ms Aasthaba Jadeja, Dhruv and Kriti Ranjan for their invaluable contributions into this article.

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