India's ELI Scheme: Boosting Job Creation and Workforce Formalization

The Union Cabinet, led by Prime Minister Narendra Modi, has given the green light to an Employment Linked Incentive (ELI) scheme with an allocation of Rs 1.07 lakh crore. The initiative will provide incentives across sectors, aiming to create 3.5 crore jobs over two years, with a special focus on manufacturing.

The scheme promises financial benefits to both employees and employers. First-time employees could receive a one-month wage up to Rs 15,000. Meanwhile, employers will get incentives for generating additional employment, with extended benefits for the manufacturing sector up to four years.

An essential facet of this scheme is the formalization of the country's workforce. CII and FICCI have applauded the initiative as a major step in boosting employment, particularly for MSMEs. Payments will be facilitated via direct transfers, ensuring transparency and efficiency.

(With inputs from agencies.)