How MNREGA Transformed India’s Factories and Labor Market
What happens when a rural job program disrupts factory labor? This video explores how MNREGA sparked unexpected changes in private industry.
December 18, 2025
Shashwat Alok
Associate Professor of Finance. His work explores how laws, government policies, and institutions influence the financial behaviour of firms and individuals, especially in emerging markets. His recent work focuses on how fintech and alternative data can support financial inclusion, and how climate change affects firms and capital allocation.
Prasanna Tantri
Associate Professor of Finance and the Executive Director at ISB’s Centre for Analytical Finance (CAF). His research focuses on banking, financial inclusion, financial contagion, regulation, and the intersection of politics and finance.
Video Summary
MNREGA was designed as a rural safety net, but its impact reached much further. This video explores how the world’s largest public workfare program reshaped India’s factory sector. As rural workers found employment closer to home, factories began facing labor shortages, higher costs, and a growing reliance on machines. The research reveals how a welfare policy meant for villages sparked major shifts in how firms operate and hire across the country.
Authored by ISB Editorial