Exploring The Relationship between Agricultural Productionand The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS): Evidence from Aspirational States of India

Growth in the comparatively backward states of India, namely Uttar Pradesh, Madhya ‎Pradesh, Rajasthan, and Bihar, is essential for the balanced development of the country. ‎Assessing and improving agricultural production is also an important element of ‎economic growth in these states. This study analyses the cropping intensity and gross ‎irrigated area in these states. Furthermore, the Mahatma Gandhi National Rural Employment ‎Guarantee Scheme (MGNREGS) is a flagship programme that provides employment and ‎creates the infrastructure in rural India that directly or indirectly boosts the country's rural ‎economy. This study attempts to associate the activities under MGNREGS, like drought-proofing, micro-irrigation work, and land development, with agricultural production. Towards ‎this, the study applies panel data methods on the data for the period 2014-15 to 2020-21. The study finds that land development activities under MGNREGS significantly impact ‎agricultural output, while other activities, namely drought-proofing and micro-irrigation ‎works, have no significant impact on agricultural yield. The study also reports a ‎contentious finding of a negative impact of cropping intensity on agricultural output. ‎Finally, the study advocates diversifying activities under MGNREGS to promote ‎cropping intensity, which positively contributes to the agricultural output‎.