India’s flagship jobs subsidy programme has placed 6.25 million in their first formal roles, achieving just a third of its ambitious target amid cautious hiring and sluggish labour market conditions.
India’s flagship jobs subsidy scheme has reached only about a third of its first-time employment target in its opening year, according to updated data from the labour ministry shared with Business Standard. The Pradhan Mantri Viksit Bharat Rozgar Yojana has placed 6.25 million people in their first formal job so far, against a goal of 19.2 million, while 1.31 million have already received the first incentive payment after completing six months of uninterrupted work.
The ministry said the programme has also helped create 4.85 million additional jobs through 186,000 employers between August 2025 and June 2026, although it has not published a combined total for overall employment generated. Because the scheme has two incentive tracks, one for first-time workers and another for employers expanding payrolls, some workers may be counted in both categories. The ministry has not disclosed how much overlap there is. The scheme’s total aim remains far larger: 35 million jobs over two years ending on July 31, 2027.
The financial pace has been slower than the headline target might suggest. Of the scheme’s ₹99,446 crore outlay, ₹2,814 crore, or 2.83%, has been paid out so far. The ministry argued that this is not a fair measure of implementation, because the incentives are spread across several years and employer benefits in manufacturing can run for as long as four years. It said the budget commitment extends to FY31, well beyond the two-year registration period. The first-time worker incentive is capped at ₹15,000, split into two instalments, while employers can receive monthly support of ₹1,000 to ₹3,000 per eligible additional worker, depending on pay.
The scheme enters its second year against a mixed labour market backdrop. India’s latest Periodic Labour Force Survey showed unemployment remained close to one in 10 among people aged 15 to 29 in 2025. Economists have questioned whether wage subsidies alone can shift hiring, arguing that jobs depend mainly on stronger demand and higher private investment. Santosh Mehrotra, the labour economist, told Business Standard that firms will not hire at scale without broader demand conditions improving. Balasubramanian A of TeamLease Services said incentives can help, but hiring decisions still hinge on business needs and many smaller firms struggle with compliance requirements. Recent business surveys also suggest more cautious hiring, with ManpowerGroup’s latest outlook showing weaker employment intentions and HSBC’s purchasing managers’ surveys pointing to subdued job growth despite continued output expansion.
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