India’s growth story has always been written by its Shram Shakti—the millions of workers whose dedication and productivity have powered the nation’s economy. The trajectory of India’s economic progress has seen a remarkable arc over the past 11 years, under the leadership of Prime Minister Shri Narendra Modi. From being the world’s 10th largest economy in 2014, India today stands as the fourth largest economy globally. Bharat has carved out an enviable niche for itself in the global arena, and the strength of its human resource has had no small role to play in this journey.

Fuelling this success story is the fact India’s economic growth has been accompanied by an unprecedented expansion of employment. According to RBI-KLEMS, while only 2.9 crore jobs were created between 2004–2014, over 17 crore jobs were created in the decade that followed. Formalization has also accelerated, with EPFO data attesting to nearly eight crore jobs added in just the last seven years.

The real transformation, however, has been in social security coverage. In 2015, only 19% of Indians were covered under at least one social protection scheme. By 2025, that number has surged to 64.3%, reaching 94 crore beneficiaries, making India the second-largest social security system in the world. The International Labour Organization has acknowledged this achievement as one of the fastest expansions of coverage globally.

As we look ahead, it is clear that the future of the nation will be decided not only by the pace of GDP growth but also by the quality of jobs we create, the security we extend to workers, and the opportunities we provide to our youth. Against a global backdrop of rising automation, uncertainties induced by Artificial Intelligence, supply-chain shifts and a host of other vulnerabilities shaping jobs worldwide, India stands at a demographic inflection point.

65% of our population is under 35 years of age, constituting a critical demographic dividend that gives our economy an edge as countries in the West reflect ageing populations. For years, India’s demographic dividend—its Yuva Shakti—has been cited as its greatest strength. Yet, under earlier regimes, this potential remained underutilised. In Amrit Kaal, as we strive towards the vision of a Viksit Bharat by 2047, the task before us is clear: we must shift from “possibility” to “prosperity.”

Employment, in this backdrop, is no longer just an economic indicator; it is the foundation of dignity, equality and national strength. It demands that we make our youth employable, integrate them into the formal economy, equip them with financial literacy, and ensure that they are protected by a robust social security net. Only then can our demographic advantage truly translate into a lasting national dividend.

It is to address this very challenge, and to bridge any gap between aspiration and opportunity, that the government has launched the Pradhan Mantri Viksit Bharat Rozgar Yojana. Initially put forth in the Union Budget 2024–25 and announced by the Prime Minister in his 12th Independence Day address, it represents a significant break from the past in both scale and design. With an outlay of ₹1 lakh crore, this is the most ambitious programme in India’s history, expected to create over 3.5 crore jobs, including two crore for first-time entrants.

Two Pillars of Scheme: Incentive to First-Time Employees and Support to Employers

What sets Pradhan Mantri Viksit Bharat Rozgar Yojana apart is its architecture. Unlike earlier programmes supporting employment generation, this scheme addresses the dual challenge of youth employability and enterprise competitiveness simultaneously. By offering direct financial incentives to both first-time employees under Part A (up to ₹15,000 in two instalments) and employers under Part B (up to ₹3,000 per new hire per month), it lowers entry barriers for workers while reducing hiring risks for businesses.

Equally important is the scheme’s explicit push towards formalisation and social security integration. Benefits will be channelled through Direct Benefit Transfer, ensuring transparency and linking new workers to social security systems from day one. Pradhan Mantri Viksit Bharat Rozgar Yojana is thus a structural nudge towards a formal, secure and productive labour market. Further, the added focus on incentives to employers in the manufacturing sector is a further propellant towards making Bharat Aatmanirbhar.

Driving Inclusive and Sustainable Growth

Pradhan Mantri Viksit Bharat Rozgar Yojana signals a shift from scheme-based interventions towards a comprehensive employment ecosystem. It builds on the learnings of earlier initiatives, complements schemes like Production Linked Incentive (PLI), National Manufacturing Mission and Make in India currently in place, and recognises the changing nature of work in a competitive global set-up.

By supporting both workers and employers, Pradhan Mantri Viksit Bharat Rozgar Yojana recognises that job creation is a shared responsibility. As India seeks to become a global manufacturing hub while embracing digital innovation, the scheme ensures that no one is left behind—that even the smallest enterprise and the newest entrant to the workforce are integrated into the journey of national development.

Pradhan Mantri Viksit Bharat Rozgar Yojana: Laying Foundations for New India

Pradhan Mantri Viksit Bharat Rozgar Yojana is more than a policy announcement. It is a concrete step towards converting demographic dividend into public prosperity. Under the leadership of Prime Minister Narendra Modi, this initiative is part of the foundation towards realization of the vision of Viksit Bharat, where every youth has access to meaningful work, every work has dignity, and every youth gets the opportunity to realise his or her dreams.

Employment is, in its truest sense, nation-building. With this initiative, Modi Government reaffirms its commitment that no aspiration will remain unsupported, and no youth will remain without opportunity. Together, we are giving wings to India’s Yuva Shakti, and through them, wings to the dream of a Viksit Bharat.

(Dr. Mansukh Mandaviya Union Minister of Labour & Employment and Youth Affairs & Sports, Government of India)