Why rural development will define India’s journey towards a developed nation by 2047

India’s growth story over the next two decades will be shaped as much by the rise of its villages as by the expansion of its cities. Rising rural productivity, stronger infrastructure and vibrant local enterprise will play a defining role in India’s journey towards Viksit Bharat

From July 1, India’s rural development framework will enter a new phase with the implementation of the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 - VB-G RAM G. More than the replacement of an existing programme, it reflects a wider shift in the country’s development priorities. The focus is no longer only on providing temporary employment support, but on strengthening the long-term economic capacity of villages.

For nearly two decades, MGNREGA played a major role in supporting rural livelihoods, particularly during periods of economic distress. Millions of families benefited from the assurance of work and income support, but rural India today is changing rapidly. Aspirations have expanded. Villages are more connected than before, and expectations from development have also evolved. Rural communities now seek better infrastructure, stronger agriculture, local opportunities and more stable incomes.

The new framework attempts to respond to these realities. It combines livelihood security with asset creation, local planning and infrastructure development. In many ways, it reflects the larger ambition of building a Viksit Bharat where development reaches every village and every household.

Building Viksit Bharat by 2047

Mahatma Gandhi believed that India’s future would be shaped by the strength of its villages. His idea of Gram Swaraj was rooted in self-reliance, local participation and empowered rural communities.

Even today, that idea continues to hold relevance. India’s journey towards becoming a developed nation by 2047 will depend not only on the growth of cities, but also on the transformation of rural India. Strong villages, productive agriculture and empowered Panchayats will remain central to that process.

The emphasis on Viksit Gram Panchayat Plans under the new framework is therefore significant. Greater involvement of Panchayats in identifying local priorities can help ensure that development responds to regional realities. A drought-prone village in Rajasthan naturally faces different challenges than a flood-affected district in Bihar or a tribal region in Odisha. Local planning allows solutions to emerge from the ground rather than being imposed uniformly from above. In the true spirit of cooperative federalism, the government have perceived more active involvement of states in finalizing the projects at the panchayat level and participating more meaningfully.

Stronger livelihood support with higher investment

One of the key features of the new framework is the increase in guaranteed employment from 100 days to 125 days annually for eligible rural households willing to undertake unskilled work.

The financial commitment behind the programme is equally notable. For FY 2026-27, the Centre has allocated Rs 95,692 crore for the scheme, while the combined outlay with state contributions is expected to cross Rs 1.5 lakh crore. Such investment can provide significant momentum to rural infrastructure creation and local economic activity. Importantly, the transition process has been designed to avoid disruption. Existing job cards will continue to remain valid during the transition phase, ongoing works will proceed without interruption and workers will not lose employment opportunities because of pending e-KYC formalities.

From wage support to productive asset creation

The most important shift under the new framework is the emphasis on durable rural assets. Employment generation is being linked more closely with projects that can strengthen village economies over time. The programme focuses on areas such as water conservation, irrigation support, rural connectivity, livelihood infrastructure and climate resilience. These are not short-term interventions. A properly restored pond, an irrigation canal or a rural storage facility can continue to benefit communities for years.

For millions of rural families, development is not an abstract policy debate. It is about water reaching farms on time, roads connecting villages to markets and better infrastructure reducing uncertainty in everyday life.

This is where the framework can make a meaningful difference. Public expenditure creates greater value when it leaves behind productive assets that support local livelihoods long after the construction work is completed.

Climate resilience as a development priority

The emphasis on climate resilience is another important aspect of the programme. Rural India today faces increasing pressure from irregular rainfall, droughts, floods and extreme weather events. These challenges directly affect agriculture and rural incomes.

India can no longer treat climate resilience as separate from rural development. Water security, watershed management and climate-adaptive infrastructure are becoming essential economic priorities for villages across the country. It will ensure the critical projects like reinforcing embankments to avoid floods,

The highlights of the new scheme is 6 monthly social audit and publishing weekly information for the public and monitoring of work by centre state working committees.

By integrating such works into the programme structure, the framework attempts to address both immediate livelihood needs and long-term sustainability concerns simultaneously.

Technology and transparency

The use of technology in implementation is expected to improve transparency and accountability. Real-time monitoring systems, geo-tagging and digital tracking can help reduce leakages and improve oversight.

There is also greater emphasis on timely wage payments and grievance redressal. Over the years, delayed payments often weakened confidence in rural employment programmes.

Faster payments and better monitoring systems can improve delivery at the ground level.

At the same time, implementation systems will need to remain sensitive to workers in regions with weaker digital connectivity so that technology becomes a tool of inclusion rather than a barrier.

The scheme also envisaged direct payment to workers digitally into their accounts and all payments will be made on fortnightly basis.

India’s growth story over the next two decades will be shaped as much by the rise of its villages as by the expansion of its cities. Rising rural productivity, stronger infrastructure and vibrant local enterprise will play a defining role in India’s journey towards Viksit Bharat.

The larger message of the VB-G RAM G framework lies in this very vision. It recognises villages as active partners in national growth and development. By strengthening livelihoods, creating durable rural assets and empowering Panchayats, the framework has the potential to build more resilient, confident and economically capable rural communities.

Prime Minister Narendra Modi has repeatedly emphasised that the path to Viksit Bharat passes through empowered villages, self-reliant communities and inclusive development. The road to Viksit Bharat will therefore run through India’s villages, farms, Panchayats and rural enterprises. In that sense, the framework carries forward both Mahatma Gandhi’s belief in the strength of villages and Prime Minister Modi’s vision of building a developed India by 2047.

The use of technology in implementation is expected to improve transparency and accountability. Real-time monitoring systems, geo-tagging and digital tracking can help reduce leakages and improve oversight.

Dr Vikramjit Singh Sahney, Padma Shri is Member of Parliament, Rajya Sabha; Views presented are personal.