PM Modi Launches ₹1 Lakh Crore ‘Viksit Bharat Rozgar Yojana’ To Create 3.5 Crore Jobs

On Independence Day 2025, Prime Minister Narendra Modi announced a landmark initiative – the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) – aimed at reshaping India’s employment landscape. With an outlay of ₹1 lakh crore and an ambitious target to generate 3.5 crore jobs in the next two years, the scheme signals one of the biggest pushes for employment generation in recent decades.

The announcement, made from the historic Red Fort on August 15, 2025, comes at a time when job creation, skilling, and formalisation of the workforce are central to India’s growth narrative. Earlier, on July 1, 2025, the Union Cabinet had cleared the proposal, paving the way for its official rollout.
 

Two-Part Framework For Employment Incentives

The Viksit Bharat Rozgar Yojana has been carefully structured into two parts – Part A and Part B – designed to benefit both employees and employers while strengthening the formal workforce.

Part A: Targets first-time employees joining the workforce. It offers a one-time EPF wage incentive, providing up to ₹15,000 spread across two instalments. The first instalment will be credited after six months of continuous service, while the second will be provided after 12 months, provided the employee has also completed a financial literacy course. Importantly, only employees earning salaries up to ₹1 lakh per month are eligible for this benefit.

Part B: Focuses on employers generating additional jobs. To incentivise workforce expansion, companies across all sectors will receive up to ₹3,000 per employee per month for two years. Notably, for employers in the manufacturing sector, these incentives will extend into the third and fourth years as well, ensuring deeper support for industries that are vital to long-term job creation.

Strengthening Formal Employment

One of the most significant aspects of PMVBRY is its integration with EPF (Employees’ Provident Fund). To avail benefits under Part A, first-time employees will need to generate a Universal Account Number (UAN) through Face Authentication Technology (FAT) available on the UMANG App.

Meanwhile, employers can register through the newly launched PMVBRY portal (https://pmvbry.epfindia.gov.in or https://pmvbry.labour.gov.in), where a one-time registration process has been made mandatory. This digital-first approach ensures transparency, reduces paperwork, and allows seamless tracking of beneficiaries.
 

Boost To Workforce And Industry

Industry experts have welcomed the scheme as a balanced mix of immediate and long-term measures. Speaking to The Economic Times, Puneet Gupta, Partner at EY India’s People Advisory Services-Tax, described the programme as “a pivotal step towards shaping India’s workforce of the future.”

He added that the scheme “combines direct incentives for new EPF members with sustained support for employers expanding their workforce, striking a balance between immediate job creation and long-term employment stability.”

This dual emphasis on workers and businesses underscores the government’s attempt to stabilise formal employment while boosting productivity, especially in sectors like manufacturing, which are employment-intensive.
 

Implications For India’s Labour Market

 

The ₹1 lakh crore allocation is not just a financial commitment but also a policy statement. It reflects the government’s belief that formalisation of jobs and skill-linked incentives are crucial for sustaining India’s economic momentum.

With nearly 3.5 crore jobs projected over the next two years, the scheme could play a decisive role in reducing unemployment pressures, enhancing social security through EPF enrolments, and encouraging companies to expand their workforce.

Moreover, the link to financial literacy courses for employees ensures that beneficiaries are not only earning but also learning to manage their finances better – a step that aligns with the broader vision of financial inclusion.
 

A Step Towards “Viksit Bharat”
 

The launch of PMVBRY on Independence Day adds symbolic weight, tying the scheme to the vision of a “Viksit Bharat” (Developed India) by 2047. By combining job creation with employer incentives and a strong digital backbone, the scheme reflects a modern approach to public policy – one that blends welfare with competitiveness.

For millions of young Indians entering the workforce each year, the scheme offers not just a job, but a pathway into the formal economy with social security benefits. For industries, especially manufacturing, it provides a cushion to expand and innovate without bearing the entire financial burden of new employment.

Conclusion
The Pradhan Mantri Viksit Bharat Rozgar Yojana is more than an employment programme; it is a strategic economic intervention. By creating incentives for both employees and employers, ensuring digital transparency, and focusing on sectors with high job potential, it sets the stage for a transformative impact on India’s labour market.

As the scheme unfolds, its success will be measured not just in numbers of jobs created but in the quality, stability, and inclusiveness of employment opportunities. For now, it represents one of the most ambitious employment-linked initiatives in India’s history.