Mandaviya Leads Push for ELI Rollout Targeting Youth Employment Surge

In a landmark move to accelerate employment generation and deepen formalization across India’s workforce, the Union Ministry of Labour & Employment convened a high-level virtual meeting with State Labour and Industry Ministers on Monday. Chaired by Union Minister Dr. Mansukh Mandaviya, the meeting served as a strategic platform to discuss the implementation modalities and collaborative opportunities for the successful rollout of the Employment Linked Incentive (ELI) Scheme.

ELI Scheme: Building on the Success of PLI

Describing the scheme as the “second step after the Production Linked Incentive (PLI) Scheme,” Dr. Mandaviya highlighted ELI’s critical role in advancing the vision of Atmanirbhar Bharat. He emphasized that the initiative is tailored to support employers financially, enabling them to hire more workers, particularly youth and first-time job seekers, and deepen the process of formal employment across sectors.

“This scheme is a win-win for both employers and job seekers. It ensures growth in employment while also promoting formalization and social security,” said the Minister.

Dr. Mandaviya cited KLEMS data from the Reserve Bank of India (RBI) to note that over 17 crore employment opportunities were created in the past decade, largely propelled by manufacturing, construction, and services. “We must build on this momentum and make sure this economic engine continues to fire on all cylinders,” he stated.

₹99,446 Crore Scheme Aims to Create 3.5 Crore Jobs

Addressing the participants, the Secretary, Ministry of Labour & Employment, elaborated on the scope and ambition of the scheme. With an outlay of ₹99,446 crore, the ELI Scheme targets the creation of over 3.5 crore jobs in the next two years.

Key features include:

• Incentives linked to sustained employment: Employers will receive the first incentive tranche only after six months of continuous employment of new hires, ensuring job sustainability.

• Focus on social security: The scheme integrates efforts to expand Employees’ Provident Fund (EPF) coverage and social protection measures.

• Manufacturing-led job creation: While open to all sectors, the scheme prioritizes job creation in labour-intensive manufacturing sectors, including textiles, leather, and electronics.

Simplified Procedures to Maximize Participation

To ensure the scheme reaches its full potential, Dr. Mandaviya reassured the participants that bureaucratic hurdles have been minimized. “All procedural formalities have been simplified. We want employers—especially small and medium-sized enterprises (SMEs)—to come forward and benefit without delay,” he said.

He urged state governments to promote the scheme widely, leveraging television, radio, press briefings, and community outreach to spread awareness and mobilize employers.

Strong State Support and Proposals for District-Level Outreach

The meeting witnessed active participation from ministers of states including Gujarat, Assam, Bihar, Chhattisgarh, Madhya Pradesh, Arunachal Pradesh, and Jharkhand. Ministers welcomed the initiative and assured full cooperation from their administrations.

They recommended that the Centre work with states to organize district-level events and industry-focused awareness campaigns in collaboration with local industry chambers and associations. Such outreach would help disseminate information about the scheme, target grassroots-level industries, and reach last-mile beneficiaries.

Several ministers also proposed integrating their existing employment-oriented schemes with ELI to streamline support for job seekers and employers.

Linking Labour and Industry for a Common Goal

“Labour and industry are two sides of the same coin,” said Dr. Mandaviya, stressing the importance of synergy between both pillars of the economy to drive national progress.

The ELI Scheme, he added, is not merely a financial incentive—it is a strategic economic intervention to ensure that India’s young workforce finds meaningful employment in an evolving global economy.

Road Ahead: Coordinated National Action

The Director (Labour & Employment) presented the detailed framework of the ELI Scheme, and the meeting concluded with remarks from the Joint Secretary (L&E), who thanked all participants and emphasized the Ministry’s continued commitment to employment generation through focused, state-centred, and collaborative strategies.

As India strives toward becoming a $5 trillion economy, the ELI Scheme offers a powerful tool to boost employment, deepen formalization, and foster inclusive, sustainable economic growth.