PM Viksit Bharat Rozgar Yojana through the Lens of Needonomics
Prof. Madan Mohan Goel, Proponent Needonomics & Former Vice-Chancellor
In his Independence Day speech from the ramparts of the historic Red Fort, Prime Minister Narendra Modi announced a landmark initiative aimed at shaping the employment landscape for India’s youth — the PM Viksit Bharat Rozgar Yojana (PM-VBRY). With an outlay of ₹99,446 crore and an ambitious target of creating 3.5 crore new private jobs, the scheme aligns with the vision of Viksit Bharat (Developed India) by 2047.
Salient Features of the Scheme
From August 15, 2025, the scheme offers first-time employees registered with the Employees’ Provident Fund Organisation (EPFO) a direct wage benefit of ₹15,000 per month. The amount is provided in two installments:
- First installment after six months of continuous service.
- Second instalment after completing 12 months of service and a financial literacy programme.
Employers in the private sector also stand to receive incentives for hiring eligible youth, thereby encouraging industry participation in nation-building.
Needonomics Interpretation of PM-VBRY
The Needonomics School of Thought (NST) emphasizes balancing needs over wants, promoting sustainable employment, and ensuring that economic growth is inclusive. From this lens, PM-VBRY carries both promise and caution:
- Employment as an Investment in Human Capital
By incentivising first-time job seekers, the scheme recognizes employment not merely as income generation, but as capacity building. The condition of continuous service ensures discipline, while the financial literacy component fosters responsible money management — a critical life skill in the age of consumerism.
- Private Sector Engagement in Social Goals
In the Needonomics view, economic transformation requires synergy between the State and the market. PM-VBRY operationalises this by making job creation a shared responsibility. Private firms, driven by incentives, become partners in inclusive growth rather than just profit-seeking entities.
- Guarding Against ‘Want-based’ Employment Trends
A potential pitfall is the misuse of wage subsidies for short-term hiring or contractual work without long-term career prospects. The NST approach demands “needo-jobs” — work that fulfills essential needs of both the worker (livelihood security, skill development) and the economy (productivity, innovation), rather than mere statistical job creation.
- Focus on Financial Prudence
The integration of a financial literacy programme is a significant alignment with Needonomics’ mandate for responsible economic behaviour. Money earned must be managed with wisdom to avoid debt traps and to promote savings, investment, and self-reliance.
Challenges and Recommendations from NST
- Ensuring Quality over Quantity: The rush to meet employment targets must not compromise the quality of jobs created. Under- employment
- Preventing Employer Misuse: Clear monitoring mechanisms are needed to prevent exploitation of the scheme for short-term gain.
- Strengthening Skill Development: Alongside financial literacy, skill up-gradation programmes must be embedded to ensure employability beyond the incentive period.
- Aligning with National Priorities: Jobs must contribute to sectors critical for Viksit Bharat — green technology, health, education, infrastructure, and manufacturing.
Conclusion
Needonomics School of Thought (NST) believes that the PM Viksit Bharat Rozgar Yojana is a bold and potentially transformative step in India’s employment policy. Through the Needonomics lens, its success will hinge on ensuring that jobs are need-based, sustainable, and growth-oriented, benefiting not just individuals but the broader economy. The partnership of government, industry, and youth, guided by prudence and purpose, can make this scheme a cornerstone in the journey towards a self-reliant and Viksit Bharat by 2047.
