Government's massive employment venture announced: Prime Minister Modi unveils Rs 1 trillion Viksit Bharat Rozgaar Yojna for young individuals
On the 12th consecutive Independence Day address from the Red Fort, Prime Minister Narendra Modi announced the launch of the Pradhan Mantri Viksit Bharat Rozgaar Yojana (PM-VBRY), a Rs 1 lakh crore program aimed at incentivising first-time job seekers and employers in India's private sector.
The PM-VBRY is set to come into effect on August 15, 2025, and is expected to create over 3.5 crore new jobs in the next two years. About 1.92 crore of these jobs will be for first-time employees.
Under the PM-VBRY, first-time employees registered with the Employees' Provident Fund Organisation (EPFO) and earning up to Rs 1 lakh annually will receive a total incentive of up to Rs 15,000 in two instalments—one after six months of employment and the other after 12 months, provided they complete a financial literacy programme. Part of the incentive will be placed in a savings or fixed deposit to encourage saving habits.
For employers, the scheme offers financial incentives of up to Rs 3,000 per month per new employee for two years, with an extension to four years in the manufacturing sector. Employers need to be registered under EPFO and hire a minimum number of additional employees to qualify.
PM Modi emphasized that the current government is moving forward in mission mode to develop a strong domestic semiconductor ecosystem. The announcement of semiconductor chip production and the employment scheme were made during his Independence Day address. The semiconductor manufacturing announcement comes at a time when India is seeking to position itself as a global hub for semiconductor manufacturing amid growing geopolitical shifts and supply chain realignments.
The PM-VBRY is a crucial step in enabling India's youth to support the country's ambition to become a developed nation by 2047. The program combines financial assistance with steps to increase hiring in the private sector, making private sector employment more attractive through direct cash benefits, promoting financial literacy, and encouraging employer participation to boost job creation.
In addition, PM Modi announced that made-in-India semiconductor chips will be available in the market by the end of this year. The government will also provide incentives to encourage large-scale job creation. PM Modi stated that the idea of semiconductor development in India had originated 50-60 years ago but remained delayed due to past governments' inactivity.
In conclusion, the PM-VBRY benefits first-time private sector job seekers financially, supports skill development through mandatory financial literacy, and incentivizes employers to expand formal employment, thereby addressing youth unemployment and encouraging economic growth in India’s private sector. The program is designed to provide work opportunities for young people in India.
- The Pradhan Mantri Viksit Bharat Rozgaar Yojana (PM-VBRY), a significant job creation program in India, aims to provide work opportunities for over 1.92 crore first-time employees.
- Recognizing the importance of financial literacy, the PM-VBRY also obliges first-time employees registered with the Employees' Provident Fund Organisation (EPFO) to complete a financial literacy program to receive incentives.
- In an attempt to assert India's position in global business, Prime Minister Modi also announced incentives for large-scale semiconductor manufacturing, with the aim of having made-in-India semiconductor chips available in the market by the end of this year.
