India launches Rs 99,446 crore plan to create 3.5 crore jobs
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The Indian government launched the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) to expand the country's formal workforce by offering financial incentives to both companies and workers.
The Union Cabinet approved the scheme on July 1, 2025, with a total budget of Rs 99,446 crore. The program targets the creation of more than 3.5 crore jobs over two years, including 1.92 crore positions for first-time employees.
The scheme addresses a structural issue where only 23.6 per cent of India's workers hold regular salaried positions, while over 56 per cent are self-employed. Under Part A of the plan, first-time employees earning up to Rs 1 lakh a month receive a one-time incentive of one month's EPF wage, capped at Rs 15,000. To receive the full amount, workers must complete a financial literacy programme and stay with the employer for at least one year.
Under Part B, the government pays employers up to Rs 3,000 per month for each new qualifying employee hired. Manufacturing companies receive these incentives for four years, while other sectors receive support for two years. To qualify, companies must meet specific hiring thresholds, such as adding at least two employees if they have fewer than 50 workers, or five employees if they have 50 or more.
The government intends for the scheme to complement the National Manufacturing Mission by encouraging labour-intensive industries. While the Press Information Bureau reported that over 72 lakh first-time employees joined the formal workforce by August 2026, the long-term success of the plan depends on whether these jobs remain stable after the government subsidies end.
