Context:

• India’s economy and society have transformed over the last 12 years under the leadership of the current Prime Minister (PM) of India.
• Over these years, employment generation, youth empowerment, social security expansion, and the launch of the PM Viksit Bharat Rozgar Yojana (PMVBRY) acted as key pillars of India's journey towards Viksit Bharat (Developed India).

India’s Transformation - From Fragile Economy to Growth Engine:

• Over the past decade, India has evolved from being grouped among the “Fragile Five” economies in 2013 to becoming the world’s fastest-growing major economy.
• The country has emerged as a global leader in Digital Public Infrastructure (DPI), startup ecosystem development, innovation and technology adoption, and global economic and diplomatic influence.
• This transformation has been supported by a governance model centred on empowerment, inclusion, and economic opportunity.

Youth as the Driver of Growth:

• Recognising the importance of its demographic dividend, the government launched several flagship initiatives aimed at enhancing employability and entrepreneurship.
• Key initiatives are Make in India, Digital India, Startup India, Skill India, PM Mudra Yojana, and National Career Service (NCS) Portal.
• These programmes, coupled with investments in infrastructure and technology, have expanded opportunities for:
  • Employment generation
  • Skill development
  • Entrepreneurship
  • Formalisation of the economy

Employment Growth - Key Trends:

• Rising employment elasticity:
  • Employment elasticity measures the responsiveness of employment to economic growth.
  • For example, in the period of 2011-12 to 2017-18, it was 0.008, while for 2017-18 to 2023-24, it was 1.11.
  • This implies that a 1% increase in Gross Value Added (GVA) generated a 1.11% rise in employment, indicating stronger job creation alongside economic growth.
• Employment indicators:
  • According to RBI KLEMS data,
    • Over 17 crore jobs were created between 2014 and 2024. In comparison, around 2.9 crore jobs were created between 2004 and 2014.
    • The employment rate increased from 46.8% (2017-18) to 57.4% (2025).
    • The unemployment rate declined to around 3.1%, below the global average of 4.8%.
    • EPFO payroll data indicate addition of over 8 crore formal-sector jobs between 2017 and 2025.
  • These trends are presented as evidence of expanding labour-market opportunities and increasing formalisation.

Expansion of Social Security Coverage:

• A major dimension of India's development journey has been the expansion of social protection.
• Growth in social security coverage:
  • 2015: 25 crore people covered (19% of population).
  • 2025: More than 94 crore people covered (64.3% of population).
  • This substantial increase reflects efforts to extend welfare benefits and social-security protection to larger sections of society.
• Global recognition: India received the International Social Security Association (ISSA) Award for Outstanding Achievement in Social Security (2025), recognising progress in expanding social-security coverage.

Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY):

• About: Introduced (1 August 2025) in the first Budget of the present government's third term with a financial outlay of nearly ₹1 lakh crore, PMVBRY is projected as one of India's largest employment-generation initiatives.
• Employment target: Creation of more than 3.5 crore employment opportunities over two years.
• Key features:
  • Part A (Support for first-time employees): Financial assistance of up to ₹15,000 disbursed in two instalments.
  • Part B (Incentives for employers):
    • Up to ₹3,000 per employee per month applicable for each additional worker hired.
    • Incentives available: Up to 4 years for manufacturing sector employers. Up to 2 years for employers in other sectors.
• Expected benefits:
• Encourages workforce participation, reduces hiring costs for employers, and supports industrial growth through employment-linked incentives.
• Enhances income security for workers and families, and strengthens the virtuous cycle of production, employment, and consumption.
• Implementation and outreach:
  • To mark the implementation of PMVBRY, incentives worth ₹2,400 crore are being disbursed through Direct Benefit Transfer (DBT) to approximately 15 lakh beneficiaries.
  • Events, distributing appointment letters to beneficiaries, recognising employers generating employment opportunities, are being organised across 200 major industrial clusters.

Towards Viksit Bharat 2047:

• As India approaches the centenary of Independence in 2047, the country’s greatest asset is its young population.
• The government views both employees and employers as equal partners in nation-building, seeking to balance worker welfare with enterprise growth.
• The broader vision of Viksit Bharat rests on:
  • Employment-led growth
  • Skill development
  • Entrepreneurship promotion
  • Social-security expansion
  • Formalisation of the workforce
  • Inclusive economic development

Conclusion:

• India's development trajectory is a combination of economic reforms, youth empowerment, employment generation, and social protection.
• Schemes such as PMVBRY seek to strengthen the relationship between labour and industry, positioning employees and employers as the twin engines driving India’s journey towards a prosperous, inclusive, and developed nation by 2047.