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Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (VB-G RAM G): A New Paradigm for the Rural Economy
General Studies Paper – II: Governance, Constitution, Polity, Social Justice, and International Relations.
Context
The rural sector is a foundational pillar of the Indian economy, where a large portion of the workforce is engaged in agriculture and related activities. Historically, rural employment guarantee schemes have not only acted as a safety net but have also played a crucial role in maintaining rural demand. In this sequence, the government has implemented a new legal framework effective from July 1, 2026, which brings structural changes in both the number of employment days and the wage rate.
What is VB-G RAM G?
Nature of the Scheme: It has been introduced under the 'Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin)' (VB-G RAM G) Act, 2025.
- Replacement: This Act replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, which will be considered repealed from July 1, 2026.
- Increase in Employment Guarantee: This is the most significant structural change of the scheme; guaranteed employment per family has been increased from 100 days under MGNREGA to 125 days.
- Floor Wage: For the first time, a 'Floor Wage' (minimum base wage) of ₹300 per day has been implemented across the country.
- Timeliness of Payment: It is mandatory to pay wages within a week or a maximum of 15 days; in case of delay, the worker will be entitled to compensation at the rate of 0.05% per day. The provision for unemployment allowance (like in MGNREGA) has been retained if employment is not provided within 15 days.
- Integration of Schemes: At the village level, work identification will continue to be done by Gram Panchayats as before, but these works will now be focused on four areas: water security, rural infrastructure, livelihood infrastructure, and disaster resilience. They will be linked to the PM Gati Shakti National Master Plan.
Reasons for Discussion
Implementation: This Act came into effect in all States and Union Territories of the country on July 1, 2026; its national launch took place on July 2 in Tirupati district, Andhra Pradesh.
- Wage Notification: The Ministry of Rural Development notified the revised wage rates on Tuesday, in which a minimum wage of ₹300 per day has been fixed.
- National Average Wage: Under the new system, the national average daily wage has increased from ₹298.8 to ₹327.4—an increase of ₹28.6 per day (over 10%) on average.
- Financial Assistance: An interim amount of ₹95,692.31 crore has been allocated to States and Union Territories for smooth implementation.
- Critical Perspective: Critics argue that the minimum wage of ₹300 is insufficient considering inflation and the real cost of living in rural areas.
Importance and Structure of the Scheme
Ministry: This scheme is implemented under the Ministry of Rural Development.
- State and Centre Share: The Central government sets the base wage rate (Floor Wage), while States have the autonomy to fix rates above this based on their local economic conditions, cost of living, and labor market demand, attempting to reduce extreme wage disparities between States.
- Reason for Disparity: The main reason for higher wages in some States is their developed industrial status and high cost of living, whereas in agriculture-predominant or slower industrial growth States, rates remain around the floor wage.
Status of States and Wage Growth
Minimum Increase: The lowest increase of ₹1 was recorded in Telangana, where the wage increased from ₹307 to ₹308 (0.33% increase).
- Significant Increase in Hindi-speaking States: Four major Hindi-speaking States saw notable increases: Uttar Pradesh (₹48), Bihar (₹45), Madhya Pradesh (₹39), and Rajasthan (₹19).
- High-Wage States: Haryana (₹409), Goa (₹406), and Kerala (₹401) are currently the only States with wage rates above ₹400.
- Status of Southern States: In other Southern States, wages were already above the ₹300 level, so there was a marginal increase: Andhra Pradesh (1.6%), Tamil Nadu (2.7%), and Karnataka (3.2%).
- Exceptions and Special Rates: The rate of ₹409 in Haryana is the highest in the country, although only a 2.25% increase was recorded there. Meanwhile, a special rate of ₹450 is applicable in some Gram Panchayats of Sikkim.
- Status-quo Areas: Wage rates remain at the previous MGNREGA levels in the Union Territories of Dadra and Nagar Haveli and Daman and Diu.
Critics' Concerns and Opposition
Financial Burden: Critics say that the increase in cost-sharing may have an adverse effect on the fiscal health of the States.
- Change in Funding Pattern: Under MGNREGA, the Central government bore approximately 100% of the wages of unskilled workers and 75% of the material costs. In contrast, VB-G RAM G has been restructured as a Centrally Sponsored Scheme on a 60:40 (Centre:State) cost-sharing model, while this ratio is 90:10 for North-Eastern, Himalayan States, and Jammu & Kashmir.
- Centralization: There is apprehension about excessive centralization due to budget caps and normative allocations, which may limit employment opportunities at the local level.
- Committee Recommendations: The current rate is considered lower compared to the 2019 recommendations of the Dr. Anoop Satpathy Committee (₹375 minimum wage).
- Demand: Critics, including former Rural Development Minister Jairam Ramesh, state that the national daily minimum wage should be at least ₹400.
- Parliamentary Concern: The Parliamentary Standing Committee has also been consistently advocating for higher wage rates.
Constitutional Provisions
Article 43 of the Indian Constitution directs the State to endeavor to secure for all workers a living wage and humane conditions of work. VB-G RAM G aims to provide economic security to achieve this constitutional goal.
Analysis
The implementation of VB-G RAM G is a significant shift in the rural labor market. Although the ₹300 floor wage is a step toward addressing disparities between States, it still appears insufficient when considering inflation and the cost of rural living. Rising protests in industrial hubs and the stagnation of rural wages clarify that improvement is not possible through a floor wage alone; it needs to be linked to productivity.
Way Forward
Wage Indexing: Wage rates should be linked to the Consumer Price Index (CPI) to stay aligned with inflation.
- Skill Development: Training programs should be integrated with the scheme to enhance the efficiency of workers.
- Decentralized Planning: Bringing flexibility to wage rates according to local needs is essential.
Conclusion
VB-G RAM G is an ambitious effort that brings structural changes to the rural employment framework through wage floors and increased employment days (125 days). Its success will depend on its effective implementation, timely wage payments, and the ability to keep pace with inflation. If the government reviews wages periodically, keeping in mind expert recommendations and industrial demand, it could prove to be a sustainable solution for rural prosperity.
Defamation Law: Reputation, Dignity, and Judicial Perspective
General Studies Paper – II: Governance, Constitution, Polity, Social Justice, and International Relations.
Context
The purpose of defamation law in Indian jurisprudence is to protect an individual's reputation, which has been considered an essential part of a 'dignified life' under Article 21 of the Constitution. Recently, observations made by a special court in a defamation case related to the RSS have revived legal discourse on the breadth and scope of this law.
What is Defamation?
In Indian law, defamation is classified into two forms:
- Civil Defamation: In this, the aggrieved person can file a suit for damages.
- Criminal Defamation: Under the Bharatiya Nyaya Sanhita (BNS), if a person makes defamatory statements, either written or oral, with the intent to harm the reputation of another, it is considered an offense. It is a statutory shield to protect a person's 'honor' and 'dignity'.
Reasons for Discussion
The special court in Bengaluru has rejected the contention that an RSS member cannot file a defamation complaint because it is not a 'registered organization'.
- The court clarified that the definition of 'person' includes any group or body of persons, whether incorporated or not.
- There is no requirement under the law for documentary proof of formal membership or registration to be recognized as a body.
Prior Judicial Precedents
Courts have clarified from time to time that the right to defamation is not limited only to individuals:
- It has been held in High Court judgments and the judicial perspective approved by the Supreme Court that the RSS is a 'definite, determinate, and identifiable body' or class of persons.
- The court is of the view that if defamatory remarks are made against an organization, an individual member of it is competent to maintain a defamation complaint.
Constitutional and Legal Provisions
Article 21: The right to reputation has been considered an integral part of a dignified life.
- Bharatiya Nyaya Sanhita (BNS): Criminal defamation has been defined under Section 356.
- Section 2(26) BNS: According to Section 2(26) of the Bharatiya Nyaya Sanhita, 2023, "person" includes a company, association, or body of persons, whether incorporated or unincorporated.
- Important Judicial Decision: In Subramanian Swamy vs. Union of India (2016), the Supreme Court upheld the constitutional validity of criminal defamation, stating that the right to reputation is an integral part of a dignified life under Article 21, while reasonable restrictions can be imposed on freedom of speech (Article 19(1)(a)) under Article 19(2) on the grounds of defamation.
Defamation, Individual Rights, and Dignified Life
Defamation law establishes a balance between freedom of speech (Article 19(1)(a)) and a person's reputation (Article 21). Reputation is the social capital of any individual. This incident highlights that the lack of 'registration' does not deprive any organization or group of protection against defamation. If a group's identity is certain, then baseless allegations leveled against it also hurt the personal dignity of its members, which is constitutionally protected.
Analysis
This decision re-establishes the 'wide scope' of defamation law. It clarifies that the law is not a slave to mere technical 'registration', but also values the 'identity' of groups. This serves as a warning to those who believe it is safe to make baseless and defamatory comments about an organization under the guise of it not being registered.
Way Forward
Courts must ensure that defamation law is used only in cases of actual harm to reputation and is not used as a means to impose unnecessary curbs on freedom of speech.
- Courts must ensure that defamation law is not used as a weapon for political vendetta.
- Courts should take cognizance only on the basis of material available prima facie, so that legal processes are not misused.
Conclusion
The main objective of defamation law is to maintain honor and dignity in society. This decision clarifies that an organization not being registered does not exclude it from legal protection against defamation. In the future, courts will have to ensure that defamation suits are used only to protect dignity, rather than to suppress freedom of speech. This balance of justice alone can ensure the protection of civil rights and individual reputation in a democracy.
The Pivot of Democracy: Decision-making Capacity of Gram Sabhas and Current Challenges
General Studies Paper– II: Governance, Constitution, Polity, Social Justice, and International Relations.
Context
The 'Gram Sabha' is the cornerstone of Indian democracy, which has been granted constitutional recognition and statutory powers to make decisions at the grassroots level under Article 243A, inserted through the Constitution (73rd Amendment) Act, 1992. Recently, a study report released by the Ministry of Panchayati Raj and prepared by the National Institute of Rural Development and Panchayati Raj (NIRDPR) has presented detailed insights into the current state of grassroots democracy in India. The report indicates that despite technical innovations, there remains a need for structural reforms to ensure the effective participation of citizens.
Status of Gram Sabhas:
Participation and Activity: The report emphasizes making Gram Sabhas more active. Trends like 'participation fatigue' have emerged in the study, where a decline in active citizen participation has been observed.
- Constitutional Powers: Article 243G of the Constitution empowers Panchayats to formulate and implement schemes for economic development and social justice. Although Gram Sabhas are empowered, according to the report, they have often become mere platforms for the effective implementation of central and state schemes.
Reasons for Discussion
Barriers to Participation: According to the report, 18%-28% of respondents cited 'lack of outcomes' as the main reason for low interest in Gram Sabhas. This argument is also confirmed by another figure from the report, where grievances are registered during Gram Sabha meetings in 86.78% of villages, but actual follow-up occurs on only 63.29% of them, which increases frustration among citizens due to repeated meetings without results.
- Technical Intervention: The government is emphasizing increasing transparency through the 'NIRNAY' app and digital recording. However, the study also indicates that time management for local discussions has become a challenge due to the burden of these administrative tasks.
- Technical Barriers: In some cases, difficulties in registering MGNREGA-related demands and reaching information to beneficiaries have been mentioned due to digital and technical barriers.
Economic and Policy Limitations
Lack of Financial Autonomy: Gram Sabhas spend 13% of their time identifying local issues, but only 4% discussing revenue generation. Panchayats are heavily dependent on central and state grants for their expenditure, which limits their financial autonomy.
- Nature of Grants: A large part of the Finance Commission grants is linked to specific central priorities like 'Jal Jeevan Mission' and 'Swachh Bharat', which has reduced the flexibility of determining priorities at the local level.
PESA Act and the Crisis of Consent
Under the PESA Act 1996 and forest rights laws, Gram Sabhas have the right to provide 'prior informed consent' for land acquisition and mining.
- In various disputed cases, it has been observed that bypassing procedures or attempting to manufacture consent by taking advantage of low participation weakens the democratic process.
Analysis
Declining participation in Gram Sabhas raises questions about the effectiveness of local self-governance. The study indicates that livelihood-related barriers, limited financial autonomy, and the increasing burden of administrative processes are affecting citizen participation. Digital monitoring alone will not be sufficient; it is necessary to develop Gram Sabhas as effective platforms for real decision-making, financial empowerment, and local accountability. Integrating administrative and social security components is the only effective solution for this.
Way Forward
Financial Strengthening: Making Panchayats more capable of collecting their own taxes so that they can reduce their dependence on grants.
- Institutional Participation: Linking attendance in Gram Sabha meetings to social security to develop it as an incentive-based mechanism for workers.
- Effective Compliance with PESA: Respecting the powers obtained by Gram Sabhas under the PESA Act and making the process of 'prior informed consent' transparent.
Conclusion
Gram Sabhas are the cornerstone of Indian democracy, representing participatory governance. The challenges highlighted in the report—especially administrative centralization and 'participation fatigue'—demand a reconsideration of the autonomy of the grassroots level of democracy. If democracy is to be made truly 'vibrant', it is mandatory not to limit the role of Gram Sabhas to mere implementation of central schemes, but to provide them with real autonomy in policy-making and financial decision-making. Therefore, for the holistic development of India, effectiveness can be increased by empowering Gram Sabhas in accordance with constitutional powers (243A, 243G) along with 'digital intervention' and 'administrative efficiency'.
India’s Energy Future: The Need for an Integrated Policy Framework
General Studies Paper – III: Economy, Infrastructure (Energy), Environment, and Sustainable Development.
Context
Over the past decade, India has made remarkable progress in transforming its energy landscape, whether it is providing electricity to every household, increasing access to clean cooking fuel, or becoming one of the world's fastest-growing renewable energy markets. In this sequence, in May 2026, the Centre for Science, Technology, Innovation, and Policy (CSTIP) of the Indian National Science Academy (INSA) released a policy brief proposing an integrated national energy framework. This framework focuses on aligning diverse energy resources, technologies, and institutions toward shared national goals.
Complexity of India’s Energy System
India’s energy system stands at a strategic juncture. According to the report, in 2024-25, India met its needs by relying on imports for 88% of its crude oil, 51% of its natural gas, and over 19% of its coal. At the same time, energy demand is expected to continue rising with economic growth, industrialization, and urbanization. In these circumstances, managing the four priorities of energy security, affordability, sustainability, and economic growth simultaneously has become a major challenge, for which coordinated planning across sectors and fuels becomes mandatory.
India has already built a strong foundation through the Saubhagya Yojana (near-universal household electrification) and Pradhan Mantri Ujjwala Yojana (access to clean cooking fuel for over 9 crore families). Renewable energy installed capacity has increased from approximately 40 Gigawatts (GW) in 2015 to about 260 GW by 2025, making India the third-largest renewable energy producer in the world. The government aims to achieve 500 GW of non-fossil energy capacity by 2030. However, as this ecosystem becomes more diverse, coordination between generation, transmission, storage, distribution, and emerging technologies will become increasingly critical.
How the Framework Works: Four Pillars
The INSA policy brief proposes a framework based on four mutually reinforcing pillars:
- Adequacy: Ensuring a balanced portfolio of traditional and emerging energy sources supported by modern infrastructure, energy storage, and digital technologies to reduce long-term vulnerabilities and strengthen energy resilience.
- Access: Ensuring reliable and equitable energy services for all citizens. Building on the achievements in electrification and clean cooking, strengthening last-mile distribution, improving service quality, and expanding decentralized energy solutions where appropriate.
- Affordability: Ensuring that the energy transition remains economically viable for households, businesses, and industries; for this, the role of innovative financing mechanisms, efficient markets, and consumer-centric safeguards is crucial.
- Appropriate Sustainability: Adopting solutions tailored to India's developmental priorities, resource endowment, and socio-economic context rather than a 'one-size-fits-all' approach—including support for local communities, workforce development, and sector-specific transition pathways.
Additionally, the policy brief identifies circular economy practices and Carbon Capture, Utilization, and Storage (CCUS) as key cross-cutting enablers, which can complement renewable energy deployment to help reduce emissions from industrial sectors.
Phased Roadmap
Since energy transition takes decades to complete, this framework adopts a phased approach:
- Near-term: Strengthening infrastructure, accelerating renewable energy deployment, supporting emerging technologies like Green Hydrogen, and developing institutional mechanisms for long-term coordination.
- Long-term: Deep integration of low-carbon technologies, expanded use of bio-resources, and the development of a more interconnected, resilient energy ecosystem.
Reasons for Discussion
India's energy security remains sensitive to global price volatility due to high import dependence (88% for crude oil, 51% for natural gas). Recently, due to tensions in the Gulf region, the price of crude oil rose from approximately $66 per barrel in February 2026 to approximately $113 per barrel by April 2026—a nearly 75% increase in six weeks—which clearly highlights this vulnerability.
- So far, India’s energy policy has been formulated in a fragmented manner across different ministries and sectors (Coal, Power, Petroleum, Renewable Energy); the INSA proposal advocates transforming this into a holistic, inter-ministerial governance framework.
- With the dual targets of 2047 (Energy Independence) and 2070 (Net-Zero) approaching, the urgency for policy coordination has increased.
Critical/Balancing Perspective
Some analysts believe that while this framework clarifies the direction, it does not specify which institution will ultimately decide on the trade-offs arising between diversification and integration; i.e., institutional accountability is still unclear.
- There is a significant fiscal challenge facing the 'Affordability' pillar: Electricity consumption subsidies provided by states in FY 2025 reached approximately ₹2,40,992 crore (about 58% of total energy subsidies), while LPG subsidies were approximately ₹71,718 crore. This heavy subsidy burden limits the fiscal capacity of states and can shrink the financial space for clean energy investment.
- Critics also argue that the government’s tax revenue from fossil fuels is still quite high, so the faster the transition, the more necessary it will be to diversify revenue sources; otherwise, fiscal dependence itself may slow down the pace of the energy transition.
Analysis
The framework proposed by INSA is an attempt to move India's energy policy away from a fragmented sectoral approach toward a holistic, system-level approach. Its greatest strength is that it views coal, renewable energy, biomass, natural gas, waste-to-energy, and emerging clean technologies as complementary resources rather than competing options. However, the success of the framework will largely depend on whether the central and state governments truly integrate their institutional structures, or if it remains merely a policy document. Simultaneously, until fiscal commitments like electricity and LPG subsidies are restructured, real progress on the 'Affordability' pillar may remain limited.
The Way Forward
Institutional Coordination Mechanism: Establishment of a powerful apex body for quick coordination of decisions between all energy-related ministries (Coal, Power, Petroleum and Natural Gas, New and Renewable Energy).
- Restructuring Subsidies: Moving away from broad consumption-based subsidies to adopt evidence-based, targeted subsidy models to ensure protection for the low-income group while also saving fiscal space.
- Revenue Diversification: Reducing excessive dependence on fossil fuel tax revenue and developing alternative revenue sources so that the pace of transition is not hampered by fiscal pressure.
- Investment in Green Hydrogen and Storage Technologies: Prioritizing these emerging technologies in the near term to lay the foundation for long-term integration.
Conclusion
India’s energy transition is no longer just a matter of capacity expansion; it is a question of building a resilient, affordable, and sustainable energy system that can support the growth of future generations. The integrated national energy framework proposed by INSA presents a practical roadmap for giving diverse energy pathways a shared national direction through the four pillars of Adequacy, Access, Affordability, and Appropriate Sustainability. However, its real success will depend on the political will for institutional implementation, fiscal discipline, and center-state coordination. If this framework translates from a mere document into a solid governance structure, it can provide a coherent path for India toward its 2047 energy independence and 2070 net-zero goals.