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Searching for a job can be a lengthy process. While you’re unemployed, however, you don’t have to sit around doing nothing. Depending on your needs and eligibility, the government of India offers a few schemes for unemployed youth, which can help you get employed, learn employable skills, get business finance or set up your own enterprise.
If you’re wondering what are the best schemes for unemployed people in India, it depends on whether you’re looking to gain employment, receive training, apply for a business loan or avail financial support to start a business.
Here are some of the key government schemes to explore in 2026.
Top Employment and Business Schemes for Unemployed Youth
1. PMEGP – For Starting Your Own Business
Prime Minister’s Employment Generation Programme (PMEGP) is a large-scale scheme for individuals interested in starting up a new micro-enterprise.
Qualified applicants can apply for a credit-linked subsidy from the government for setting up new manufacturing or service/business projects. The maximum project cost eligible for subsidy under PMEGP is ₹50 lakh for manufacturing units and ₹20 lakh for service/business projects. Depending on the category and region of the applicant, the subsidy ranges from 15% to 35%.
Best for: Those who are unemployed and looking to set up their own small manufacturing unit/service business.
How to apply: Candidates can apply through the official online portal of PMEGP application system.
2. Pradhan Mantri Viksit Bharat Rozgar Yojana – For First-Time Employees
PM Viksit Bharat Rozgar Yojana is an employment incentive scheme designed to create more formal employment opportunities. Under this scheme, eligible new employees joining EPFO-covered job establishments can receive an incentive of ₹15000 across two instalments, depending on the conditions of the scheme. Employers who meet eligibility conditions are also offered incentives for creating new jobs.
Best for: Youth looking to work formally for the first time.
Benefits: Helps create an environment where workers and employers can choose to work and get registered under formal (EPFO-linked) employment terms.
3. National Career Service (NCS) – Find Jobs & Career Guidance
Seeking out loans or business schemes isn’t the only path available when unemployed. Through the National Career Service India (NCS), job seekers can search for employment while also exploring other career services on the digital platform.
The portal offers job matching, career counselling, vocational advice, job fairs, employment opportunity information, and more.
Best for: Job seekers looking to find job vacancies, enhance career prospects, and get in touch with employers.
How to use: Job seekers can register on the NCS portal and create their respective job-seeker profiles to browse relevant job openings.
4. DDU-GKY – Skill Training for Rural Youth
The Deen Dayal Upadhyaya Grameen Kaushalya Yojana skill training programme aims to empower rural Indian youth with skills required for regular wage employment.
DDU-GKY targets rural Indian youth between the ages of 15 to 35 years. Training is offered based on industry needs and focus is laid on successful placement.
Best for: Rural Indian youth that meet the eligibility criteria and are looking for skills training and wage employment.
Benefits: Candidates can receive skill training, certification and placement-oriented benefits. Keep in mind benefits vary from state-to-state and are dependent on the program’s conditions.
5. Pradhan Mantri Mudra Yojana – Business Credit for Micro Enterprises
Offering institutional credit to micro and small businesses, PM Mudra Yojana can help unemployed persons looking to start small businesses.
Best for: Small businesses, shopkeepers, service providers, individual traders, and other eligible micro-business owners.
Note: PMMY is a credit scheme and not an unemployment benefits programme. Approval of loans is subject to the lending and eligibility criteria.
Which Government Scheme Is Best for You?
| Your goal | Scheme to consider |
|---|---|
| Start a new business | PMEGP |
| Get a business loan | PM Mudra Yojana |
| Find formal employment | PM Viksit Bharat Rozgar Yojana |
| Search for jobs | National Career Service |
| Learn skills for employment | DDU-GKY |
Before You Apply
The eligibility criteria, benefits, documents required and application process may differ from scheme to scheme. Candidates are recommended to check official government sites for up-to-date eligibility criteria before applying to a particular scheme.
Just because you are unemployed doesn’t mean you qualify for every scheme. Age, education level, income, residency, social category, current employment status and type of business applies are some of the factors that can influence eligibility.
Users looking for a wider selection of schemes can check the government’s myScheme portal. The platform allows users to see what schemes they can apply for based on their individual needs and eligibility.
Bottom line: Each of these schemes caters to a different employment need. If you want to start your own business, consider applying for PMEGP. If you’re looking to work, the NCS and PM Viksit Bharat Yojana could prove helpful. If you want job-oriented training, consider DDU-GKY if you’re a rural youth who qualifies for the skill-training program.