Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) is an effectual and comprehensive flagship program of the Indian government aimed at offering causal and assured employment opportunities to the rural population of the country, especially women, schedule caste (SCs) and schedule tribes (STs) communities. The MGNREGS Programme aims to promote inclusive development through a demand-driven and participatory approach because India’s rural areas have been characterized by rampant deprivations and lack of resources. This study analyses the recent developments in the financial progress, physical progress, and inclusiveness of the MGNREGS in Uttar Pradesh, India. This study used secondary data sourced from the official MGNREGA websites covering the period from 2020-21 to 2024-25. The analysis shows that the effectiveness of the MGNREGS programme in the state of Uttar Pradesh, India, has not been effective in achieving the objectives of a minimum of 100 days of satisfactory job, and only a small number of people completed the 100 days from 2020-21-2024-25 and overall average days of employment was 44.44 days. However, the participation of women in the MGNREGS was more than the statutory limit of 33% over the year from 2020-21 to 2024-25 and continuously increased every year but slightly declined to 41.8% in 2024-25. The SC/ST person-days generated reduced over the year, and it found that the SC and ST person-days under the MGNREGS were the highest at 31.75% and 1.13% in 2022-23 and 2021-22, respectively. However, the study recommends aligning the MGNREGS programme with the marginalized group of people and focusing on climate-resilient works that create sustainable infrastructure in rural India and give priority to agriculture and allied sectors to transform the livelihood security of the rural community.