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India is one of the fastest developing economies in the world, ranking 7th largest country in the world, sharing 2.4 per cent of the world s geographical area and 2nd largest country after China in population, which stands at 1.15 billion,growing at the rate of 2.2 per cent per annum, that accounts for 16.7 per cent of the world s population, among which 74 per cent of households belong to rural India and account for 76 per cent of total population living in 5.5 lakh villages (62nd NSSO survey report 2005-06). The National Rural Employment Guarantee Act (NREGA) 2005 was passed by Parliament, GOI on 23rd August 2005 and it was promulgated on 7th September 2005. Based on the Act,National Rural Employment Guarantee Scheme was ceremoniously launched by the Honorable Prime Minister Dr. Manmohan Singh on February 2nd, 2006. It is implemented by the Ministry of Rural Development, Government of India and is the world s biggest employment guarantee programme. The National Rural EmploymentGuarantee Act was renamed as Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) on 2nd October 2009 as a befitting tribute to the Father of the Nation Mahatma Gandhi.