GS II - Government policies and interventions for development in various sectors

• India’s economic growth has been accompanied by an unprecedented expansion of employment.

Social security coverage

• 64.3% of Indians covered under at least one social protection scheme, reaching 94 crore beneficiaries, making India the second-largest social security system in the world. International Labour Organization has acknowledged this achievement as one of the fastest expansions of coverage globally.
• Growth of nation 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 other vulnerabilities shaping jobs worldwide, India stands at a demographic inflection point.
• For years, India’s demographic dividend — its Yuva Shakti — has been cited as its greatest strength. Yet, this potential remained underutilised.
• Employment is no longer an economic indicator; it is the foundation of dignity, equality and national strength.
• We have to 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.

An ambitious programme

Pradhan Mantri Viksit Bharat Rozgar Yojana

• This scheme expected to create over 3.5 crore jobs over two years, and also 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 Rs15,000 in two instalments) and employers under Part B (up to Rs3,000 per new hire per month), it lowers entry barriers for workers while reducing hiring risks for businesses.
• Benefits will be channelled through Direct Benefit Transfer, ensuring transparency and linking new workers to social security systems from day one.
• Further, the added focus on incentives to employers in the manufacturing sector is a further propellant towards making Bharat aatmanirbhar (self-reliant).
• This scheme shifts from scheme-based interventions towards a comprehensive employment ecosystem. It builds on the learnings of earlier initiatives, such as the Production-Linked Incentive, the National Manufacturing Mission, and Make in India, and recognises the changing nature of work in a competitive global set-up.
• By supporting workers and employers, the scheme recognises that job creation is a shared responsibility.
• This initiative is a concrete step towards converting demographic dividend into public prosperity.