India Unveils Ambitious Job Creation Plan: ELI Scheme to Boost Employment

On Tuesday, Union Minister Ashwini Vaishnaw announced that the Indian government has approved a historic Employment Linked Incentive (ELI) Scheme, set to transform job creation strategies in the country. Approved by the Union Cabinet under the leadership of Prime Minister Narendra Modi, the initiative is designed to boost employment and strengthen social security across India.

The ambitious scheme, with an allocated budget of Rs 99,446 crore, aims to create over 3.5 crore jobs. This initiative is part of the Prime Minister's broader employment package announced in the 2024-25 Union Budget, designed to aid 4.1 crore young Indians. According to the Union Minister, the ELI Scheme will primarily focus on the manufacturing sector, offering incentives both to companies and first-time employees.

The scheme is bifurcated into two segments: Part A is aimed at first-time employees, providing a month's salary up to Rs 15,000 in two installments, while Part B incentivizes employers, particularly those in manufacturing, to create additional employment. Employers will receive Rs 3000 per month per new employee for two years. For sustained growth and to encourage financial habits, a portion of employee incentives will be secured in savings instruments.

(With inputs from agencies.)