Relevance for UPSC GS
- GS II (Governance & Social Justice): Employment generation, social security, labour reforms.
- GS III (Economy): Demographic dividend, formalisation of workforce, inclusive growth.
- Essay Paper: Employment as nation-building; youth and demographic dividend.
Context
India has witnessed rapid economic transformation in the last decade, rising from the 10th largest economy in 2014 to the 4th largest in 2025. Alongside GDP growth, a record expansion in employment and social security coverage has strengthened India’s labour market.
Against global challenges like automation, AI disruption, and supply chain shifts, India is leveraging its demographic advantage (65% population under 35 years) to transition from possibility to prosperity.
Body
1. Employment and Social Security Transformation
- Jobs created: Only 2.9 crore (2004–14) vs. 17 crore (2014–24) (RBI-KLEMS).
- Formalisation: Significant rise in EPFO coverage.
- Social Security: From 19% coverage in 2015 to 64.3% in 2025 (94 crore beneficiaries).
- Recognised by ILO as one of the fastest global expansions.
2. The Challenge
- Employment is not just an economic indicator but the foundation of dignity, equality, and national strength.
| New Employee: Any individual who joins an establishment between 1 August 2025 and 31 July 2027 will be treated as a new employee. First-Timer: An individual who was not previously a member of EPFO/Exempted Trust, joins during the scheme period, and contributes to EPFO/Trust for the first time. Incentives under Part A will apply only if the employee’s UAN is verified through Face Authentication on the UMANG App. |
- To realise the vision of Viksit Bharat @2047, India must:
- Enhance youth employability.
- Integrate them into the formal economy.
- Provide financial literacy and social protection.
3. Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY)
- Announced in Union Budget 2024–25; unveiled by PM in 12th Independence Day speech.
- Outlay: ₹1 lakh crore; target: 3.5 crore jobs in 2 years.
Unique Features
- Dual Incentive Design:
- Part A: First-time employees – ₹15,000 (two instalments).
- Part B: Employers – up to ₹3,000 per new hire/month(additional focus of Manufacturing sector).
- Formalisation Push: DBT ensures transparency and linkage to social security from Day 1.
- Focus on Manufacturing Sector: Boosts Atmanirbhar Bharat and global competitiveness.
4. Broader Significance
- Shift from scheme-based interventions → comprehensive employment ecosystem.
- Builds on PLI, Make in India, National Manufacturing Mission.
- Recognises job creation as shared responsibility between workers and enterprises.
- Ensures inclusion of MSMEs and first-time workforce entrants.
Conclusion
The PM Viksit Bharat Rozgar Yojana is more than an employment scheme — it is a nation-building project. By integrating youth into a formal, secure, and productive economy, India is converting its demographic dividend into public prosperity.
As India aspires for Viksit Bharat 2047, ensuring dignity of work, security of workers, and empowerment of youth will remain the cornerstone of inclusive growth.
| Prelims Practice Question Q. Consider the following statements about Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY): It provides direct financial incentives to both employees and employers. The scheme benefits are delivered through Direct Benefit Transfer (DBT). It focuses exclusively on the agricultural sector for employment creation. Which of the statements given above is/are correct? A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3 Answer: A Mains Practice Question Q. “Employment is not just an economic indicator but the foundation of dignity, equality, and national strength.” Discuss this statement in light of India’s demographic dividend and critically evaluate how the Pradhan Mantri Viksit Bharat Rozgar Yojana seeks to address this challenge. 15 marks(250 words) |