Hyderabad, May 31st, 2025: In a transformative move to combat unemployment and foster economic self-reliance, the Congress-led Telangana government is set to launch the Rajiv Yuva Vikasam scheme on June 2nd – the state’s Formation Day.
This ambitious initiative targets 5,00,000 unemployed youth from marginalized communities, equipping them with subsidized capital to launch their own businesses and become job creators.
With a substantial allocation of ₹6,250 crores, the scheme specifically prioritizes youth from Scheduled Castes (SC), Scheduled Tribes (ST), Backward Classes (BC), and Minority communities who possess business ideas but lack financial resources.
Beneficiaries will receive loans with unprecedented subsidies: 100% for loans up to ₹50,000, 90% up to ₹1 lakh, 80% up to ₹2 lakh, and 70% up to ₹4 lakh. This means a youth establishing a ₹4 lakh enterprise would only need to repay 30% of the loan amount.
As part of this, it has been decided to issue proceedings for units costing up to ₹1 lakh in the first phase on June 2.
Social Justice is the priority
The response has been overwhelming, with over 16.22 lakh applicants seeking support. The government has meticulously selected the first 5 lakh beneficiaries for this year, ensuring 80% represent marginalized groups (BC: 31.44%, SC: 29.36%, ST: 19.59%).
Additionally, 25% of spots are reserved for women and 5% for persons with disabilities, aligning with Chief Minister Revanth Reddy’s commitment to social equity.
A phased rollout begins June 2-9 with the distribution of sanction letters across all constituencies. This will be followed by intensive Entrepreneurship Development Training (June 10-15) delivered by government-empaneled agencies to sharpen skills in chosen sectors.
The grounding of business units starts June 16, with a strict deadline for all ventures to be operational by Gandhi Jayanti (October 2nd).
Boost for the state economy
The scheme’s impact is projected to extend far beyond individual empowerment. Citing the All India Census of MSMEs, the government estimates that each new unit will create an average of 4.4 jobs.
With 5 lakh businesses launching simultaneously, the Telangana government anticipates the creation of 22 lakh new jobs, both directly and indirectly, a significant boost to the state’s economy and a potential model for addressing unemployment nationwide.
This initiative stands in stark contrast to the previous administration’s record, where 9.09 lakh corporation loan applications reportedly languished pending.
By turning lakhs of unemployed youth into business owners within months, Telangana aims to ignite a grassroots economic revolution while setting a new benchmark for inclusive development in India.