India is accelerating efforts to generate large-scale employment opportunities for its young population. In a significant announcement during his Independence Day address from the Red Fort, Prime Minister Narendra Modi introduced a new scheme designed to formalise and expand youth employment while strengthening the country's manufacturing and services sectors.
The Pradhan Mantri Viksit Bharat Rozgar Yojana comes with a financial outlay of ₹1 lakh crore and is aimed at supporting the creation of over 3.5 crore new jobs within 2 years. The scheme focuses on boosting formal employment through incentives for first-time employees and employers across sectors, particularly manufacturing.
Under Part A of the scheme, eligible youth joining the formal workforce for the first time and registering under EPFO will receive up to ₹15,000 in 2 instalments. Salaries up to ₹1 lakh qualify for support. The first instalment will be released after 6 months of continuous service, and the second after twelve months, upon completion of a financial literacy programme.
A portion of this amount will be deposited in a savings instrument to encourage long-term financial discipline. Nearly 1.92 crore young Indians are expected to benefit.
Part B provides monetary support to employers who create sustained additional employment opportunities. Businesses hiring new employees with salaries up to ₹1 lakh will receive up to ₹3,000 per month for 2 years for each such appointment. Employers in the manufacturing sector will receive support for up to four years. This component is projected to help create nearly 2.60 crore new formal jobs.
Funding for first-time employees under Part A will be transferred directly through the Aadhaar-enabled Direct Benefit Transfer system, while payments to employers will be made into PAN-linked accounts. This structure ensures transparency in delivery and aligns with the government’s broader vision of promoting formal workforce participation.
By creating incentives across both demand and supply sides of the labour market, the scheme seeks to bridge the gap between Swatantra Bharat and Samriddha Bharat. With a strong focus on formalisation, manufacturing expansion and youth development, it is positioned as a landmark step toward sustained economic progress driven by empowered young citizens.
Read More: Centre Asks States To Connect Job Schemes To ₹99,446-Crore ELI Scheme!
The Pradhan Mantri Viksit Bharat Rozgar Yojana reflects a strong push towards job creation, formalisation and youth empowerment in the country. With its structured support for both employees and employers, the scheme could become a significant driver of India’s employment and economic growth story.
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Published on: Aug 16, 2025, 2:29 PM IST
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