A decade of empowerment, from reform to rozgar, Pg12

Key Highlights:

• India has transitioned from being one of the "Fragile Five" economies in 2013 to the fastest-growing major economy.
• The government launched initiatives like Make in India, Digital India, Startup India, Skill India, PM Mudra Yojana, and the National Career Service portal to boost employment and entrepreneurship.
• Between 2017-18 and 2023-24, India's employment elasticity stood at 1.11, indicating a significant improvement in job creation relative to economic growth.
• Over 17 crore jobs were created between 2014 and 2024, with formal-sector jobs increasing by more than 8 crore between 2017 and 2025.
• Social security coverage expanded from 19% of the population in 2015 to 64.3% in 2025, leading to India receiving the International Social Security Association’s Award for Outstanding Achievement in Social Security in 2025.
• The Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY), with an outlay of nearly ₹1 lakh crore, aims to create over 3.5 crore employment opportunities over two years.

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Detailed Insights:

• India's economic transformation over the past 12 years is attributed to empowerment, good governance, and inclusive development.
• The country has emerged as a leader in Digital Public Infrastructure and strengthened its global standing.
• The initiatives like Make in India and Digital India leverage India's demographic dividend by focusing on youth power.
• The employment rate is projected to increase from 46.8% in 2017-18 to 57.4% in 2025, with unemployment declining to around 3.1%.
• The PMVBRY includes two parts: Part A provides financial assistance of up to ₹15,000 to first-time employees in two installments, and Part B offers incentives of up to ₹3,000 per employee per month to employers for additional workers.
• Incentives under PMVBRY are provided for up to four years for manufacturing employers and up to two years in other sectors.
• The scheme aims to reward work, make jobs more attractive, and generate positive cyclical impacts on industrial growth.
• Prime Minister Modi disbursed incentives worth ₹2,400 crore to 15 lakh beneficiaries through Direct Benefit Transfer under PMVBRY.

Key Concepts Involved:

• Fragile Five: A term coined in 2013 for emerging market economies (Brazil, India, Indonesia, South Africa, Turkey) heavily reliant on foreign investment, making them vulnerable to external shocks.
• Employment Elasticity: The percentage change in employment for every one percent change in economic growth (Gross Value Added or GDP).
• Digital Public Infrastructure (DPI): Shared digital platforms and systems (like Aadhaar, UPI) that operate at a societal scale, enabling efficient delivery of public and private services.
• Direct Benefit Transfer (DBT): A system where government subsidies and benefits are transferred directly to beneficiaries' bank accounts, reducing leakages and increasing efficiency.