Evaluating the Impact of MGNREGS on Sustainable Agricultural Productivity in the Selected States of India: An Empirical Analysis

Abstract

Introduction: This study analyses the impact of MGNREGS-driven sustainable asset creation on agricultural productivity in ten Indian states from 2015 to 2022–23. It examines the relationship between these assets and agricultural development. The findings highlight MGNREGS’s role in promoting sustainable rural growth.

Objectives: The primary objectives are to evaluate the impact of drought-proofing, micro-irrigation work, land development, and Rural connectivity on agricultural output in Indian states.

Methods: The Study uses the fixed effect and the random effect Model with data from the Ministry of Rural Development and RBI. The Study also uses the Hausman test and the Pesaran test to determine the model and check the serial correlation.     

Results: The Study finds that draught-proofing, micro-irrigation, land development, and rural connectivity significantly affect the agricultural productivity in the states of Uttar Pradesh, Madhya Pradesh, Bihar, Rajasthan, Jharkhand, Chhattisgarh, Odisha, Punjab, West Bengal, and Haryana.

Conclusions: MGNREGS has significantly improved the agricultural productivity in less developed states through drought-proofing, micro irrigation, and rural connectivity. The study highlights their significant impact from 2014–15 to 2022–23. It recommends diversifying activities to address soil degradation and water stress.