Giving wings to India’s youth , Pg7

Key Highlights:

• India has risen from the world's 10th largest economy in 2014 to the fourth largest.
• Social security coverage in India has surged from 19% in 2015 to 64.3% in 2025, reaching 94 crore beneficiaries.
• The government has launched the Pradhan Mantri Viksit Bharat Rozgar Yojana with an outlay of ₹1 lakh crore, expected to create over 3.5 crore jobs over two years.
• The scheme offers financial incentives to both first-time employees (up to ₹15,000) and employers (up to ₹3,000 per new hire per month).

Detailed Insights:

• India's economic growth has been accompanied by an expansion of employment, with over 17 crore jobs created in the decade following 2014, compared to 2.9 crore jobs between 2004-2014.
• The Pradhan Mantri Viksit Bharat Rozgar Yojana addresses youth employability and enterprise competitiveness simultaneously by lowering entry barriers for workers and reducing hiring risks for businesses.
• The scheme promotes formalization and social security integration through Direct Benefit Transfer, linking new workers to social security systems from day one and incentivizing employers in the manufacturing sector.
• This initiative builds on earlier initiatives like Production-Linked Incentive, the National Manufacturing Mission, and Make in India, supporting workers and employers in a competitive global set-up.

Key Concepts Involved:

• Demographic Dividend: The economic growth potential resulting from a shift in a population's age structure, particularly when the share of the working-age population is larger than the non-working-age share.
• Formalization: The transition of economic activities from the informal sector to the formal sector, characterized by compliance with legal and regulatory frameworks.
• Social Security: A system providing monetary and other benefits to address the risks of unemployment, illness and disability, old age, and death.