Why in News: The government launched the Pradhan Mantri Viksit Bharat Rozgar Yojana (2024-25) with an outlay of ₹1 lakh crore, aiming to create 3.5 crore jobs in two years. It provides direct incentives to both first-time employees and employers, promotes formalisation, and expands social security coverage.
Introduction
- India’s economic transformation in the past decade has not only been about rising GDP but also about the expansion of employment, social security, and youth empowerment.
- With nearly 65% of the population below 35 years, India stands at a demographic inflection point. Converting this Yuva Shakti into productive human capital is essential to realise the vision of Viksit Bharat@2047.
India’s Growth and Employment Story
- Economic Rise: From the world’s 10th largest economy in 2014 to the 4th largest today.
- Employment Expansion:
- 2004–14: ~2.9 crore jobs created.
- 2014–24: 17 crore jobs created (RBI-KLEMS).
- Formalisation: Accelerated through EPFO and digital platforms.
- Social Security Coverage:
- 2015: Only 19% covered.
- 2025: 64.3% coverage (94 crore beneficiaries) → world’s 2nd largest social security system.
- Acknowledged by the ILO as among the fastest expansions globally.
Challenges in Harnessing the Demographic Dividend
- Automation & AI: Threat to low-skilled jobs.
- Supply-Chain Vulnerabilities: Affecting manufacturing and exports.
- Underutilisation of Demographic Dividend: Large youth population still lacks employability skills.
- Quality of Jobs: Need to move beyond mere numbers to dignity, security, and productivity.
- Financial & Digital Literacy: Gaps hinder youth participation in the formal economy.
Pradhan Mantri Viksit Bharat Rozgar Yojana (2024-25)
- Largest Employment Programme in India’s history with ₹1 lakh crore outlay.
- Scale: Aims to create 3.5 crore jobs in two years.
- Innovative Architecture:
- Part A: Incentives for first-time employees (₹15,000 in two instalments).
- Part B: Incentives for employers (₹3,000 per new hire per month).
- Structural Features:
- Direct Benefit Transfer → ensures transparency.
- Integration with social security systems from Day 1.
- Strong focus on manufacturing sector to boost Atmanirbhar Bharat.
- Shift in Approach: From isolated schemes to a comprehensive employment ecosystem.
Broader Implications of the Scheme
For Workers:
- Easier entry into the formal labour market.
- Enhanced social security and dignity of work.
For Employers:
- Reduced hiring risk.
- Boost in competitiveness, especially in manufacturing.
For Economy:
- Bridges skill gaps.
- Strengthens Make in India, PLI, and National Manufacturing Mission.
- Promotes self-reliance while embracing global digital innovation.
Strategic Significance
- Demographic Dividend to Prosperity: Ensures demographic advantage translates into lasting national strength.
- Social Equity: Employment as a driver of dignity, equality, and inclusion.
- Global Positioning: Stable job ecosystem critical for India’s aspiration to be a global manufacturing hub and $34 trillion economy by 2038.
- Nation-Building: Employment framed as not just economic growth, but nation-building with youth at the centre.
Conclusion
India’s future will be determined not just by the pace of GDP growth but by the quality of jobs, social protection, and opportunities offered to its youth. The Pradhan Mantri Viksit Bharat Rozgar Yojana marks a paradigm shift — from demographic “possibility” to demographic “prosperity.”
UPSC Relevance
GS Paper III (Indian Economy)
- Employment generation and inclusive growth
Mains Practice Question
Q. The Pradhan Mantri Viksit Bharat Rozgar Yojana represents a paradigm shift in India’s employment policy. Examine its significance in addressing both worker welfare and enterprise competitiveness.