Context

• India’s economic trajectory in the twenty-first century has been closely tied to its Shram Shakti, or labour power.
• Over the past decade, under the leadership of Prime Minister Narendra Modi, the country has not only risen from the world’s tenth largest economy in 2014 to the fourth largest today, but has also witnessed profound shifts in employment, social security, and youth empowerment.
• The narrative of India’s growth is therefore inseparable from the role of its workforce, and the policies designed to harness its demographic dividend.

Employment Growth and Formalisation

• A striking feature of India’s economic performance in recent years is the simultaneous rise in employment opportunities.
• According to RBI-KLEMS data, the decade preceding 2014 produced just 2.9 crore jobs, while the subsequent decade generated more than 17 crores.
• This expansion of employment has been coupled with accelerated formalisation.
• Evidence from the Employees’ Provident Fund Organisation (EPFO) shows that more workers are being drawn into the formal sector, thereby gaining access to structured protections and benefits.
• The quality of this transformation, however, goes beyond job creation alone.

Expanding Social Security

• In 2015, only 19% of Indians were covered under at least one protection scheme.
• By 2025, that number had risen to 64.3%, amounting to 94 crore
• This expansion makes India the second-largest social security system in the world, a development the International Labour Organization has acknowledged as among the fastest global expansions of its kind.
• Such an achievement underscores a deliberate policy effort to align economic growth with social welfare, ensuring that gains in productivity and employment translate into protection and dignity for workers.

Harnessing the Demographic Dividend

• India’s demographic profile is both an opportunity and a challenge.
• With 65% of its population under the age of 35, India possesses a unique advantage at a time when many Western countries face ageing populations.
• This Yuva Shakti, or youth power, has long been recognised as India’s greatest strength, yet its potential remained underutilised.
• The path to realising this dividend lies in making the youth employable, integrating them into the formal economy, equipping them with financial literacy, and ensuring that robust social protections are in place.
• As India pursues the vision of Viksit Bharat by 2047, the transition from possibility to prosperity will depend on how effectively it channels this demographic advantage.

The Pradhan Mantri Viksit Bharat Rozgar Yojana

• Announced in the Union Budget of 2024–25 and reaffirmed in the Prime Minister’s Independence Day address, this programme marks the most ambitious employment initiative in India’s history.
• With an outlay of ₹1 lakh crore, it aims to create over 3.5 crore jobs in just two years.
• Part A provides first-time employees with up to ₹15,000 in direct financial support, while Part B offers employers up to ₹3,000 per new hire per month.
• This design lowers barriers for young workers while reducing hiring risks for enterprises.
• Furthermore, by integrating Direct Benefit Transfers and mandating social security enrolment from day one, the scheme promotes transparency, formalisation, and long-term labour market resilience.
• Equally notable is the scheme’s targeted emphasis on manufacturing, aligning with initiatives such as Make in India, the National Manufacturing Mission, and the Production-Linked Incentive scheme.
• By strengthening both workers and businesses, it recognises that employment generation is a shared responsibility between state, market, and society.

Employment as Nation-Building

• Beyond numbers and policy design, the PM Viksit Bharat Rozgar Yojana symbolises a broader shift in India’s development model.
• Employment is framed as central to nation-building, a foundation of dignity and equality that ensures no aspiration remains unsupported and no youth remains without opportunity.
• In this vision, a self-reliant Bharat is one where every individual has access to meaningful work, where labour is formalised and secure, and where social protection systems are robust enough to absorb global shocks.

Conclusion

• India’s growth story is increasingly one of inclusive development, an intertwining of economic expansion, employment generation, and social security.
• The rise from the world’s tenth to the fourth largest economy within a decade demonstrates the strength of India’s labour force, while the expansion of social protection highlights a commitment to equity and welfare.
• With the launch of the Pradhan Mantri Viksit Bharat Rozgar Yojana, the government has set the stage for a structural transformation of the labour market, bridging the gap between aspiration and opportunity.
• As India stands at the cusp of 2047, the vision of Viksit Bharat will depend on how effectively it converts its demographic dividend into lasting national prosperity.