Share this article


The Government of India generates employment for youths and wicker section people all over India, through direct and indirect efforts. In this article, we, describe the Top 10 Employment Generation Programme in India.

As per CMIE Unemployment rate in India –March-2023:-is 7.5%.According to the estimate, over the next four years, 10 million more people will join the ranks of the unemployed, bringing the total to 220 million by 2022.

While releasing the 4th Quarterly Report, Union Minister said that employment is showing an increasing trend in the selected sectors of the economy. The estimated employment has increased from 3.14 crore in the third quarter (September-December, 2021) to 3.18 crore in 4th Quarter (January-March, 2022). 

Top10 prime minister’s employment generation Programme of India.
Atma Nirvar Bharat scheme of Govt. of India

Why Indian Graduates are not getting jobs?

The high youth unemployment rate in India reason is that schools & colleges in India are even today training students from a young age in skills that have no use in the market in the future world. At present, students need future-ready 21st-century skills.

Engineering in India is one of the most choices for all students make but yet, they are not providing thbs in that particular industry, where the students pass out.

India annually produces one million engineering graduates. And a handful of them eventually gets the engineering-related job. 

There are alarming statistics in a NASSCOM report that Only 3.84% of engineers are employable in software-related jobs at start-ups.

In India, around 3% of engineers possess new-age skills in areas such as AI, Machine Learning, Data Engineering, and Mobile technologies, which are is remanded in the job market all over India of IT Professionals. The aggregate level, of employability in these areas, is around 1.5–1.7%.

Top 10 Employment Generation Programmes in India;-

 1. Atmanirbhar Bharat Rojgar Yojana (ABRY):-

Aatmanirbhar Bharat Rozgar Yojana (ABRY) has been launched to incentivize employers to the creation of new employment along with social security benefits and restoration of loss of employment during the COVID-19 pandemic. 

It provides a subsidy for provident fund contributions for adding new employees to establishments registered with the Employees’ Provident Fund Organization (EPFO).

The organizations of up to 1000 employees would receive employee contributions (12% of wages) & employer’s contributions (12% of wages), totaling 24% of wages, for two years.

 Employers with over 1,000 employees will get an employee contribution of 12%, for two years.

The subsidy amount under the scheme will be credited upfront only in the  Aadhaar-seeded EPFO accounts (UAN) for the new employees in the organization

 Eligibility Criteria for Establishments:

 Establishments registered with EPFO will be eligible for the benefits if they add new employees compared to the reference base of employees as of September 2020.

  1. Establishments, with up to 50 employees, would have to add a minimum of two new employees.
  2. The organizations, with more than 50 employees, would have to add at least five employees.
Top10 prime minister’s employment generation Programme of India.
Pradhan Mantri Rojgar Protshan Yojana

2.Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) 

It is an initiative of the Government of India to encourage employers to provide employment and employability to the youth of India. It provides financial support to employers for employing the unemployed youth, with a special focus on those from the economically weaker sections and women. 

The scheme helps incentivize employers for providing jobs to unemployed youth, and also encourages them to train and upskill these youth for better and more productive employees. 

The Pradhan Mantri Rojgar Protsahan Yojana or PMRPY Scheme is aimed at incentivizing employers to generate employment, where the Government pays the employers’ Employee Pension Scheme share of 8.33 percent, for new employees for the first three years of their job.

 Objectives of Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)?

The PM Rojgar Protsahan Yojana is a popular scheme in light of increasing job demands across India.

  • This prprogramffering incentive to the employers registered under EPF for new job creations
  • The Payment of the EPF for applicants for the first three paid by the government of their service.
  • Assisting less skilled and unskilled workers to find jobs and earn a living
  • Extending social security benefits to the workers in the organized sectors
  • Helping employers fill their vacancies quickly and increasing their employee base
Top10 prime minister’s employment generation Programme of India.

3. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

MGNREGA is a revolutionary act introduced by the Government of India in2005 to reduce poverty. This programme of government guarantees the right to work by providing at least 100 days of guaranteed wage employment for a financial year to every rural household.

Under this scheme, the government provides work to rural people with a minimum wage rate and other benefits. MGNREGA has been a game changer in India’s rural development, providing employment to the rural masses and helping to reduce poverty.

The main feature of the National Rural Employment Guarantee Act 2005 (NREGA) is as follows:

  • This programme guarantees 100 days of wage employment in the financial year to a rural unemployed whose adult members volunteer to do unskilled manual work. In this scheme, one-third of the proposed job will be reserved for women.
  • This government scheme will be initially started in 200 districts. Later on, this scheme will be further extended to 600 districts all over India.
  • If the applicant is not employed within 15 days, then he/she will be entitled to a daily unemployment allowance by the government.

4. Prime Minister’s Employment Generation Programme (PMEGP):-

PMEGP is a credit-linked subsidy program launched by the Government of India in 2008 to promote self-employment opportunities. It aims to generate employment in rural as well as urban areas of the country.

It provides financial assistance to projects costing up to Rs.25 lakh in the manufacturing sector and up to Rs.10 lakh in the service sector. The main objective of the program is to facilitate the setting up of micro-enterprises in the manufacturing, processing, and service sector.

The Main Salient features of the scheme

  • The Scheme is implemented through KVIC and State/UT Khadi & V.I.
  • Boards in Rural areas and through District Industries Centres in Urban and Rural areas in a ratio of 30:30:40 between KVIC / KVIB / DIC respectively.
  • No income ceiling for setting up projects. Assistance under the Scheme is available only to new units to be established.
  • Existing units or units already availed of any Govt. Subsidy either under State/Central Govt. Schemes are not eligible.
  • Any industry including Coir Based projects excluding those mentioned in the negative list. Per capita investment should not exceed Rs. 1.00 lakhs in plain areas and Rs. 1.50 lakhs in Hilly areas.
  • The maximum project cost of Rs. 25.00 lakhs in the manufacturing sector and Rs. 10.00 lakhs in the Service Sector.

 Area of Operation

  • Rural areas declared under KVIC Act 2006 – Scheme to be implemented by KVIC, KVIB, and DIC
  • (“Rural Area” means the area comprised in any Village and includes the area comprised in any town, the population of which does not exceed twenty thousand or such other figure as the Central Government may specify from time to time as declared under KVIC Act 2006)


  • Urban area – Only District Industries Centres (DIC)


Top10 prime minister’s employment generation Programme of India.
Pradhan-Mantri-Mudra-Yojana by Govt of India scheme

5.Pradhan Mantri MUDRA Yojana (PMMY):-

Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the Government of India in 2015 to provide access to institutional finance for micro and small businesses. It provides loans of up to 10 lakhs to small entrepreneurs for their business activities.

It has enabled many business owners to take their businesses to the next level. It enables a small borrower to borrow from all Public Sector Banks such as PSU Banks, Regional Rural Banks and Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions (MFI), and Non-Banking Finance Companies (NBFC) for loans upto Rs 10 lakhs.

 Key Features of Mudra Loan Under Pradhan Mantri Mudra Yojana

Government Mudra loans can only be availed by individuals, MSMEs, enterprises, or businesses engaged in Manufacturing, Trading, and Services Sectors, only.

 Given below are some of the unique features of the Mudra loan

Interest Rate

Varies from bank to bank, depending on business requirements.

CollateralNot required.

 Minimum LoanAmount

There is no minimum loan amount.

Maximum Loan Amount

Up to 10 Lakhs

Repayment Tenure From 3 years to 5 years

Processing Charge No Processing Charges

Top10 prime minister’s employment generation Programme of India.
Digital India Internship Scheme of India

6.Digital India:-

 It has been described as an effort to make India a digitally empowered society and economy.

The campaign focuses on three core components:

1.Creating digital infrastructure:

This involves creating a secure and efficient digital infrastructure in India. This includes providing high-speed Internet access and improving the digital literacy of citizens.

2. Delivering services digitally:

This involves making government services such as banking, healthcare, education, and other essential services available online.

3.Empowering citizens:

This involves encouraging citizens to use digital services and creating a digital ecosystem that promotes innovation and entrepreneurship. Digital India aims to transform India into a connected knowledge economy, where citizens can access services and information instantly. The goal is to make India a global leader in the digital economy.

Launched on 1 July 2015, by Indian Prime Minister Narendra Modi, it is both enabler and beneficiary of other key Government of India schemes, such as Bharat Net, Make in India, Start-up India, Stand up India, Industrial Corridors, Bharat mala, and Sagar mala.

As of 31 December 2018, India had a population of 130 crore people (1.3 billion), 123 crores (1.23 billion) Aadhaar digital biometric identity cards, 121 crore (1.21 billion) mobile phones, 44.6 crores (446 million) smartphones, 56 crores (560 million) internet users up from 481 million people (35% of the country’s total population) in December 2017, and 51 percent growth in e-commerce.

The Objectives of Digital India –

Digital Infrastructure Creation, Digital Delivery of Services, and Digital Literacy are the three main components of the Digital India initiative. The key objective is to provide high-speed internet in every part of the country and improvising the online infrastructure.


Top10 prime minister’s employment generation Programme of India.

7. Make in India:-

Make in India is an initiative by the Government of India to attract businesses from around the world to invest and manufacture in India. It was launched in 2014 to make India a global manufacturing hub. 

The initiative focuses on encouraging companies to manufacture their products in India and to create job opportunities for the Indian workforce. It provides a conducive environment for investment, promotes innovation, and makes India a strong global hub of manufacturing, design, and innovation.

It also aims to increase the share of the manufacturing sector in India’s GDP from 15% to 25% by the end of 2022. The initiative is expected to help India become a global superpower.

The “Make in India” initiative is based on four pillars, which have been identified to give a boost to entrepreneurship in India. New Processes:

‘Make in India’ recognizes ‘ease of doing business’ as a key factor to promote entrepreneurship. To make the process easier, it has identified several processes and procedures to be streamlined to make it easier for businesses to set up operations in India.

New Sectors:

 ‘Make in India’ has identified 25 sectors in manufacturing, infrastructure, and service activities, and detailed information is being shared through an interactive web portal and professionally developed brochures. The FDI has been opened up in Defence Production, Construction, and Railway infrastructure in a big way.

New Mindset:

“The industry is accustomed to seeing Government as a regulator. ‘Make in India’ intends to change this by bringing a paradigm shift in how Government interacts with industry. The Government will partner with industry in the economic development of the country. The approach will be that of a facilitator and not a regulator.”

There have been from Union Ministers, Secretaries to the Government of India, state governments, industry leaders, and various knowledge partners. 

8. Stand up India Scheme:-

Stand Up India Scheme is an initiative by the Government of India launched on 5th April 2016 to promote entrepreneurship among SC/ST and women entrepreneurs.

The Scheme also provides basic infrastructure and support services such as pre-loan and post-loan handholding support, business advisory services, and handholding through incubators. The Scheme has the potential to transform India into a nation of empowered entrepreneurs.

The objective of the Stand-Up India scheme is to facilitate bank loans between 10 lacks and 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a Greenfield Project.

The Benefits of Standup India are as follows:-

Tax Benefits/Incentives in Stand Up India

  • The applicants will receive an 80% rebate after filing the patent application form. …
  • An inclusion of a Credit Guarantee Fund exists, and the entrepreneurs can enjoy relaxation in Income tax for the first three years.
  • The StStand-Upndia scheme aims at providing people of the scheduled caste or scheduled tribe or women of the country a loan between Rs.10 lakhs to Rs.1 crore, based on their requirements. The aim is to promote entrepreneurship among them. 
  • The topic, ‘Stand Up India Scheme’ comes under the Indian Polity Syllabus of the IAS Examand this article will provide you with relevant facts about it. 
  • Under the scheme, Government of India 1.25 lakh bank branches would each be expected to lend money every year to at least one Dalit or tribal entrepreneur and one woman entrepreneur in their service area. 



Top10 prime minister’s employment generation Programme of India.
Startup-India-Scheme-for Employment Generation in India

9. Start-Up India:-

Start-Up India is a flagship initiative of the Government of India to promote and nurture entrepreneurship in the country. It encourages innovation, creates jobs, and enables the growth of new businesses in India. 

Start-Up India has become a great success in the last few years and has helped many entrepreneurs to realize their dreams. It has helped India to become a hub for innovation and business growth.

Start-up India Scheme is an initiative by the Government of India for the generation of employment and wealth creation in the country. The goal of Start-up India is the development and innovation of products and services and to increase the employment rate in India.

Benefits    Start-up India:-

  • Startups shall be allowed to self-certify compliance with 6 Labour Laws and 3 Environmental Laws through a simple online procedure.
  • In the case of labor laws, no inspections will be conducted for 5 years. Startups may be inspected only on receipt of a credible and verifiable complaint of violation, filed in writing, and approved by at least one level senior to the inspecting officer.
  • In the case of environmental laws, startups which fall under the ‘white category (as defined by the Central Pollution Control Board (CPCB)) would be able to self-certify compliance and only random checks would be carried out in such cases

Definition of “Startup”

Any Company which falls into the below-given list a category will be called a “Start-up” and eligible to be recognized by the DPIIT to avail the benefits from the Government of India.

  • Age of the Company– The Date of Incorporation should not exceed 10 years
  • Type of Company– Should have been Incorporated as a Private Limited Company or a Registered Partnership Firm or a Limited Liability Partnership
  • Annual Turnover– Should not exceed Rs.100 crore for any of the financial years since its Incorporation
  • Innovative & Scalable– Should have a plan for the development or improvement of a product, process, or service and/or have a scalable business model with high potential for the creation of wealth & employment
  • Tax Exemption under 80IAC

In India o,nly Private Limited Companies or Limited Liability Partnerships are eligible for tax exemption under Section 80IAC.

The Start-up must have been incorporated on or after 1st April 2016


Startup India is an initiative of the Government of India.

The campaign was first announced by Indian Prime MinisterNarendra Modi during his speech on 15 August 2015.

The action plan of this initiative is focussing on three areas:

  1. Simplification and Handholding.
  2. Funding Support and Incentives.
  3. Industry-Academia Partnership and Incubation.

“It was organized by The Department for promotion of industry and internal trade (DPI&IT) to discard restrictive States Government policies within this domain, such as License Raj, Land Permissions, Foreign Investment Proposals, and Environmental Clearances.”

DPIIT: The Department for Promotion of Industry and Internal Trade mandates to coordinate the implementation of the Startup India initiative. Five Government Departments: Initiatives under Startup India are driven primarily by five Government Departments.

The government of India has made fast-paced efforts towards making the vision of the Startup India initiative a reality. Substantial progress has been made under the Startup India initiative, which has stirred entrepreneurial spirit across the country. 

The Reserve Bank of India said it will take steps to help improve the ‘ease of doing business’ in the country and contribute to an ecosystem that is conducive to the growth of start-up businesses. 

10.Pradhan Mantri Garib Kalyan Yojana (PMGKY):-

Pradhan Mantri Garib Kalyan Yojana (PMGKY) is a welfare scheme launched by the Government of India in 2020 to support the poor and vulnerable sections of society during the COVID-19 pandemic.

The scheme includes financial aid of INR 500 per month for three months to women Jan Dhan account holders, free food grains for three months to 80 crore people, free gas cylinders for three months to 8.3 crore households, free electricity up to INR 500 for three months to 4 crore households, and free insurance coverage of INR 50,000 to the frontline workers.

The scheme is expected to provide much-needed relief to the marginalized sections of society during the pandemic.

This was announced in March 2020, to reach out to the poorest of the poor, with food and money in their hands, so that they do not face difficulties in buying essential supplies and meeting essential needs. The package included the measures listed hereunder from 30th March 2020:

  • The Pradhan Mantri Garib Kalyan Yojana / Package is a comprehensive relief package of Rs 1.70 Lakh Crore Yojana for the poor to help them fight the battle against Corona Virus.
  • Insurance cover of Rs 50 Lakh per health worker fighting COVID-19 to be provided. 80 crore poor people to get 5 kg wheat or rice and 1 kg of preferred pulses for free every month for the next three months.
  • 20 crore women Jan Dhan account holders to get Rs 500 per month for the next three months. Increase in MNREGA wage to Rs 202 a day.
  • An ex-gratia of Rs 1,000 to 3 crore poor senior citizens, poor widows, and poor disabled.

Insurance Scheme:-

The Insurance Scheme has been extended for 1 year (from its original validity of 90 days from 30 March 2020) effective April 20, 2021, to cover Health Workers who are helping in the fight against COVID-19. 

The government scheme covers loss of life due to COVID-19 and accidental death on account of COVID-19-related duty. In case of an eventuality, an amount of INR 50 lakhs will be paid to the claimant of the insured person. 

The scheme was originally launched last year, and policies under the scheme began on 30th March 2020.

The government of India resolved that it would not allow anybody, especially any poor family, to suffer on account of the non-availability of foodgrfood grainso disruption from COVID-19.

  • 80 crore individuals, i.e, roughly two-thirds of India’s population were to be covered under this scheme.
  • Each individual was to be provided double of their current entitlement over the next three months.
  • This additionally was free of cost.


The government generates employment through direct and indirect efforts. The government makes direct efforts at employing people in various departments for administrative purposes. It runs various enterprises and when they result in an increased output of goods and services, they lead to a further increase in employment.

The government generates employment through direct and indirect efforts. The rural Employment Generation Programme (REGP) aims at creating self-employment opportunities in rural areas and small towns. The Khadi and Village Industries Commission is implementing it. Under this programme, one can get financial assistance in the form of bank loans to set up small industries.


Share this article


I am Ajay Kumar Patra. ( & MBA-Finance) with 27years of Accounts & Taxation Experience in Large Manufacturing Units in India. In 2021 I started my own tax consultancy firm called “Ajay Tax consultant”. I started my Digital marketing on my website "".I have already published more than 100 Blogs on Business, Finance, startups, Digital marketing & Tours & Travel for my viewers.