The MGNREG scheme has made favourable impacts in the life of crores of people in rural India. This scheme is implemented to provide a guarantee of 100 days employment for the benefit of poor households in a financial year. It is a major rural employment scheme of united progressive alliance government. The Central government shall bear the expense of 75 for unskilled workers allowance, administrative maintenance expenses in providing facilities at work place and also the expenses of National Work Guarantee committee. The study aims at analyzing the performance of national rural employment scheme of government of India. The blocks namely, Kovilpatti, Ottapidaram and Vilathikulam in Thoothukudi district of Tamil Nadu has been chosen as the area of study. Thus, the study concludes that the adverse effects of such a heavy incidence of poverty on the country‘s development are obvious. In this context the self-employment programmes assume significance for they alone can provide income to the rural poor at sustainable basis. The rural workers have emerged as an unintended consequence of MGNREGS. Workers as individuals have gained because of their ability to earn independently are made possible due to the paid employment opportunity under MGNREGS. Independent and monetized earnings have increased consumption choices and reduced economic dependence. This has helped workers in registering their tangible contribution to the household‘s income. The overall effects of these have translated into an increased so for workers in households.