India Inc. Knows PM-VBRY, But Small Firms Lag: TeamLease Report

ECONOMY

Overview

A new report from TeamLease Services reveals a paradox in India's Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY). While 81% of employers are aware of the scheme, participation remains low, particularly among startups and micro-enterprises that stand to gain the most from hiring incentives up to ₹3,000 per employee. This disconnect highlights a missed opportunity as 56% of businesses plan workforce expansion in the latter half of FY26.

Awareness-Billion, Participation-Million

A significant gap exists between employers' knowledge of the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) and their active engagement with it, a study by TeamLease Services found. The report indicates that while a substantial 81% of businesses are aware of the government's employment generation scheme, this awareness is not translating into widespread adoption. This disparity is particularly pronounced among small and medium-sized enterprises (SMEs) and startups, the very entities the scheme aims to support with hiring incentives of up to ₹3,000 per employee monthly. Awareness among these crucial segments hovers at a concerning 5.4%.

Hiring Intent vs. Policy Uptake

Further underscoring the missed opportunity, the survey of over 1,200 employers revealed that 56% plan to increase their workforce in the second half of fiscal year 2026. However, only about 60.4% of these growth-oriented companies are familiar with PM-VBRY. This disconnect suggests that businesses expanding their teams may not be leveraging the policy's financial benefits. The report also highlighted that employers are motivated more by long-term workforce objectives than immediate financial gains. Skill development was cited as the primary driver by 51.8% of respondents, far outpacing direct hiring incentives at 18.6%. Job retention and workforce formalisation were also key considerations.

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