India’s economic progress in the twenty-first century is deeply intertwined with its Shram Shakti, or labour power. Over the last decade, under the leadership of Prime Minister Narendra Modi, India has experienced a remarkable ascent from being the world’s tenth-largest economy in 2014 to its current position as the fourth largest. Alongside this impressive growth, the country has also witnessed significant transformations in employment patterns, social security frameworks, and the empowerment of its youth. Consequently, the narrative of India’s development is inseparable from the workforce’s role and the policies that have been implemented to harness the potential of its demographic dividend.

Employment Growth and Formalisation

One of the most notable features of India’s recent economic performance is the simultaneous expansion in employment opportunities. Data from RBI-KLEMS highlights a dramatic shift: while the decade leading up to 2014 generated only 2.9 crore jobs, the following ten years produced an astounding 17 crore jobs. This surge in employment has been accompanied by accelerated formalisation of the workforce. Evidence from the Employees’ Provident Fund Organisation (EPFO) shows that an increasing number of workers are being absorbed into the formal sector, thereby gaining access to structured protections and social benefits. However, the transformation is not just about the quantity of jobs but also about the quality and security that formal employment brings.

Expanding Social Security

In 2015, a mere 19% of India’s population was covered under at least one social protection scheme. By 2025, this figure rose dramatically to 64.3%, encompassing approximately 94 crore people. This expansion has made India home to the second-largest social security system globally, a development recognized by the International Labour Organization as one of the fastest expansions of its kind worldwide. This accomplishment reflects a deliberate policy effort to ensure that economic growth translates into tangible social welfare, protecting workers and enhancing their dignity by securing their livelihoods alongside increasing productivity.

Harnessing the Demographic Dividend

India’s demographic profile presents both an opportunity and a challenge. With 65% of its population under the age of 35, the country holds a distinct advantage compared to many Western nations grappling with ageing populations. This Yuva Shakti, or youth power, has long been acknowledged as one of India’s greatest assets, yet its full potential remained untapped. Realizing this demographic dividend requires making the youth employable, integrating them into the formal economy, equipping them with financial literacy, and ensuring robust social protection measures. As India moves towards the vision of Viksit Bharat by 2047, the transformation of this youthful potential into economic prosperity will be critical.

The Pradhan Mantri Viksit Bharat Rozgar Yojana

·       Unveiled in the Union Budget of 2024-25 and reaffirmed in the Prime Minister’s Independence Day address, the Pradhan Mantri Viksit Bharat Rozgar Yojana stands as the most ambitious employment initiative in India’s history. With a substantial outlay of ₹1 lakh crore, the scheme aims to create over 3.5 crore jobs within two years. The program is divided into two parts: Part A provides first-time employees with up to ₹15,000 in direct financial assistance, while Part B offers employers a subsidy of up to ₹3,000 per new hire each month. This design lowers barriers for young job seekers and reduces hiring risks for enterprises.

·       Furthermore, the scheme incorporates Direct Benefit Transfers and mandates social security enrolment from the very first day of employment, promoting transparency, formalisation, and long-term labour market resilience. Importantly, the program emphasizes the manufacturing sector, complementing initiatives like Make in India, the National Manufacturing Mission, and the Production-Linked Incentive scheme. By empowering both workers and businesses, the initiative acknowledges that employment creation is a shared responsibility between the state, the market, and society.

Employment as Nation-Building

Beyond the statistics and policy mechanics, the Pradhan Mantri Viksit Bharat Rozgar Yojana symbolizes a broader shift in India’s development paradigm. Employment is now seen as central to nation-building—a foundation for dignity and equality that ensures no ambition is left unfulfilled and no young person is deprived of opportunity. In this vision, a self-reliant Bharat is one where every individual has access to meaningful work, labour is formalised and secure, and social protection systems are strong enough to cushion against global shocks.

Conclusion

·       India’s growth story increasingly reflects a model of inclusive development, where economic expansion, job creation, and social security intertwine. The rapid rise from the world’s tenth to fourth-largest economy over a decade demonstrates the strength and dynamism of India’s labour force. Meanwhile, the massive expansion in social protection underscores the country’s commitment to equity and welfare. With the introduction of the Pradhan Mantri Viksit Bharat Rozgar Yojana, the government has laid the groundwork for a structural transformation of the labour market, bridging the gap between aspiration and opportunity.

·       As India approaches the milestone of 2047, the vision of Viksit Bharat will rest heavily on how effectively the country can transform its demographic dividend into sustained national prosperity.