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Since 2000 India has experienced rapid economic growth and a sharp decline in poverty. But employment has grown far more slowly. And although agriculture contributes only 18% to the Indian economy, it continues to employ 47% of the workers. The rural poverty and unemployment in India has grown and recorded huge in last few decades. Due to that there is a growing illiteracy, increase the hungry people, undernourished children, farmer suicides, hunger deaths, rural people migration for inadequate employment and increasing poverty. Thus the Government of India (GOI) enacted the National Rural Employment Guarantee Act (NREGA) in 2005 to solve the listed problems. The National Rural Employment Guarantee Act (NREGA) was passed by the parliament in 2005 and came into force on February 2, 2006. It was renamed Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in October 2009. The aim this scheme is to enhance livelihood security for all adults willing to perform unskilled manual labour in rural areas.