Impact of Right to Work in India

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Economic Environment Management PROJECT Impact of the “Right to work programme” in India

SUBMITTED BY – Yash Jhaveri IIM Kozhikode Batch: EPGP04:

Date of Submission: 27th January 2013

Contents
INTRODUCTION : Right to Work In INDIA .......................................................................................... 3 What is NREGA / MGNREGA .............................................................................................................. 3 WHAT ARE THE GENERAL BENEFITS RTW / MGNREGA ..................................................................... 4 HOW IS THE PROGRAM FINANCED? .................................................................................................. 4 Financing pattern ............................................................................................................................... 4 Release of funds ................................................................................................................................. 4 Comparison : RTW/MGNREGA Vs other government based employment schemes ........................ 5 Impact of RIGHT TO WORK / MGNREGA ........................................................................................... 5 Increase in GDP .................................................................................................................................. 5 Effect on Inflation .............................................................................................................................. 6 Recommendations ............................................................................................................................. 7 REFERENCES ....................................................................................................................................... 8

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INDIAN INSTITUTE OF MANAGEMENT - KOZHIKODE

INTRODUCTION : Right to Work In INDIA
Every human being have rights to fundamental aspects like right to food, life and education. India is a country where approximately thirty percent of the population is below the poverty line. In order to provide millions of humans with rights to life, right to education and right to food that only have access to economic assets like labor power, providing them employment is very important. Unemployment is one of the major concern and reason for spreading poverty in India. The right to work according to Article 39 of the Indian Constitution urges the State to ensure that “the citizens, men and women equally, have the right to an adequate means to livelihood”, and that “there is equal pay for equal work for both men and women. RIGHT TO WORK Program is implemented in India under Mahatma Gandhi national rural employment guarantee act – MGNREGA. The Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA) was notified in 2005, 7TH Septmeber.

What is NREGA / MGNREGA
Mahatma Gandhi National Rural Employment Guarantee Act was earlier knows as NRGEA. Main aim of this program is to enhance the livelihood andsecurity of people residing in rural areas. This act guarantees a minimum 100 days of wage-employment in a financial year to a rural household whose adult members volunteer to do unskilled manual work. Important original provisions of the MGNREGA are as outlined below: i. Every household in the rural India shall have a right to a minimum of 100 days of guaranteed employment every year for minimum one adult (above 18 years of age) member, for doing UNSKILLED manual labour, compensation for which is fixed at Rs 120 (one hUndred twenty only) on daily basis. ii. Only productive work shall be undertaken under this program. A list of permissible and preferred works has to be prepared by a state council who shall implement the program. Such preferred works are identified basis the benefits of socio-economical work, the contribution made by such socio-economical work to social equity, and the ability of such work to create assets on...
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