Modi unveiled the Pradhan Mantri Viksit Bharat Rojgar Yojana — a ₹1 lakh crore scheme to help first-time job seekers. Young recruits will get ₹15,000 directly, and companies hiring fresh candidates will receive government incentives
BY PC Bureau
New Delhi, August 15, 2025 — From the ramparts of the historic Red Fort, Prime Minister Narendra Modi on Friday marked India’s 79th Independence Day with a speech that blended immediate economic relief with sweeping promises for the nation’s future. Against the backdrop of a clear August sky and the fluttering tricolour, Modi spoke for over an hour, unveiling a raft of measures that, he said, would “light up homes, hearts, and hopes” in the months ahead.
At the centre of his address was a promise that drew instant public attention: a major reform to the Goods and Services Tax to be rolled out ahead of Diwali. Calling it a “festive gift to every Indian household,” the Prime Minister said the government would reduce GST rates on a range of essential and commonly purchased items, making them more affordable during the festive season. The move, he explained, would ease the pressure on household budgets, boost consumption, and help small traders during the most important retail period of the year. “Diwali is a time for joy, not for worry about inflated bills,” he declared, adding that the changes would also simplify compliance for businesses and plug loopholes that had frustrated traders since the tax’s inception.
Another headline announcement was the launch of the Pradhan Mantri Viksit Bharat Rojgar Yojana, a ₹1 lakh crore scheme aimed squarely at first-time job seekers. Under the plan, young Indians entering the private sector for the first time will receive a one-time grant of ₹15,000 directly in their bank accounts. The government will also provide incentives to companies that hire fresh candidates, in an effort to spur large-scale recruitment and address the challenge of youth unemployment. “Our youth are our greatest capital,” Modi said, “and every young person taking their first step into the workforce should feel the nation standing beside them.”
While the GST relief and employment push dominated headlines, Modi’s speech also mapped out broader commitments across sectors. Farmers will see the annual support under the PM Kisan Samman Nidhi rise from ₹6,000 to ₹8,000, alongside a revamped crop insurance system designed to settle claims within 15 days. Women in rural areas are set to benefit from a new maternity assistance programme, offering ₹12,000 to expecting mothers, while funding for self-help groups will be expanded to empower 30 million rural women as entrepreneurs.
VIDEO | Speaking from the ramparts of Red Fort on Independence Day, PM Narendra Modi (@narendramodi) says, “We aim to bring the development in eastern India at par with the development in rest of India… We approved thousands of crores for infra projects there.”… pic.twitter.com/kno7kZRNql
— Press Trust of India (@PTI_News) August 15, 2025
Infrastructure development featured prominently in his roadmap, with pledges to double India’s expressway length within five years, upgrade 100 railway stations, and expand the Vande Bharat network to every state capital by 2027. Technology and innovation received a boost with the announcement of AI research hubs in ten cities and a ₹5,000 crore fund for deep-tech and green energy start-ups.
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The Prime Minister also revisited his government’s housing agenda, promising to build two crore additional homes for low-income families under the second phase of the National Affordable Housing Mission by 2029. “A roof over one’s head is not just shelter,” he said, “it is dignity, security, and hope.”
Political observers note that the combination of consumer tax cuts and a youth-focused employment package is likely to have significant electoral appeal, particularly with several key state elections on the horizon. Economists predict the GST changes could boost festive season spending, while the employment scheme could improve hiring sentiment in the private sector. Opposition leaders, however, have already raised questions about funding sources and the feasibility of implementing such large-scale programmes within tight timelines.
Public reaction has been swift. Traders and shopkeepers have welcomed the GST announcement as a timely boost, while young graduates have expressed optimism about the new job scheme. Farmers have cautiously welcomed the increased PM-Kisan support, although some remain sceptical about whether insurance reforms will deliver as promised.
Concluding his address, Modi looked beyond immediate policies to a long-term vision, urging citizens to imagine India at 100 years of independence in 2047 — a nation, he said, “where poverty is history, corruption is a distant memory, and every citizen walks with pride on the world stage.”
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It was a speech that balanced short-term relief with long-term ambition — and one that sought to assure the public that, in Modi’s words, “the journey to a developed India has already begun, and it will be built with the hands, dreams, and determination of every Indian.”
SNAPSHOT OF KEY ANNOUCEMENTS:
Diwali GST Cut — “A Gift for Every Family”
In a move he framed as a festive gift, PM Modi announced next-generation GST reforms to be rolled out before Diwali this year.
- Tax relief will be targeted at everyday-use items, making them more affordable for households during the festive season.
- The reforms aim to simplify compliance, remove inefficiencies, and reduce the indirect tax burden on middle and lower-income families.
“Diwali should bring light to every home, not the worry of inflated bills,” Modi said, calling the reform “a gift from the government to the people of India.”
Economists expect this change to boost consumption in retail, FMCG, and small manufacturing sectors during the high-spending festive quarter.
₹1 Lakh Crore Scheme to Empower the Youth
The Prime Minister also launched the Pradhan Mantri Viksit Bharat Rojgar Yojana, a ₹1 lakh crore employment generation package aimed at helping first-time job seekers.
- Youth entering private sector jobs will receive a one-time grant of ₹15,000 directly in their bank accounts.
- Companies hiring such candidates will be eligible for government incentives to encourage fresh recruitment.
“Our youth are our greatest capital. Every young Indian should feel confident that the nation stands with them as they take their first step into the workforce,” Modi said.
Other Key Announcements
- Farmers & Agriculture
- Expansion of PM Kisan Samman Nidhi, increasing annual aid to farmers from ₹6,000 to ₹8,000.
- New crop insurance model to make coverage more affordable and reduce claim settlement time to 15 days.
- Women’s Empowerment
- A new Maternity Support Programme to provide ₹12,000 assistance to pregnant women in rural areas.
- Expansion of self-help group funding to enable 30 million rural women to become entrepreneurs.
- Infrastructure Push
- Pledge to double the length of expressways in the next five years.
- Major upgrades to 100 railway stations and expansion of Vande Bharat trains to all state capitals by 2027.
- Technology & Start-ups
- Establishment of AI research hubs in 10 cities.
- Special ₹5,000 crore fund for deep-tech and green energy start-ups.
- Social Welfare
- National Affordable Housing Mission 2.0: Commitment to build 2 crore additional homes for low-income families by 2029.
Economic & Political Implications
Analysts say the combination of GST relief and the youth employment scheme is a strategic move ahead of upcoming state elections and will likely resonate with both urban and rural voters.
- Immediate Effect: Increased consumer spending during the festive season.
- Medium-Term Impact: Enhanced youth employability and greater private sector participation in job creation.
- Political Angle: Opposition parties are expected to question funding sources and implementation, but the populist appeal is undeniable.
Public Reaction
- Retailers: Expect festive sales to see double-digit growth.
- Students & Job Seekers: Welcomed the youth scheme as “a real helping hand” in tough job markets.
- Farmers: Cautiously optimistic about the increased PM-Kisan payout and quicker insurance settlements.
