Sign of rising rural distress: MGNREGS demand up in poorest states

A rise in the demand for work under the scheme shows rising economic distress

India’s post-pandemic recovery appears to be shaping up like the letter K, widening the inequality among states. The last part of the series captures the rising rural distress, as seen through the prism of MGNREGS demand

The pandemic appears to have exacerbated rural distress in the poorest states. The share of the poorest five in the work demanded under Mahatma Gandhi National Rural Employment Guarantee Scheme — an indicator of the economic health in rural areas — has increased, while the share of the richest five has declined.

If more people demand work under MGNREGS, it means fewer people have