In a major push to tackle unemployment and boost job creation, the Union Cabinet led by Prime Minister Narendra Modi has greenlit a massive Employment Linked Incentive (ELI) Scheme worth Rs 1.07 lakh crore. The ambitious plan is expected to generate over 3.5 crore new jobs across India, with a special focus on the manufacturing sector.
What’s in It for First-Time Employees?
First-time job entrants will receive direct benefits:
One month’s wages (up to Rs 15,000) as a joining incentive.
An additional Rs 3,000 per month for two years, provided the employment is retained for at least six months.
Employers will also receive incentives for hiring employees earning up to Rs 1 lakh per month, helping to formalize jobs and improve working conditions.
Manufacturing Sector Gets More
Recognizing the potential of manufacturing as a job multiplier, the scheme will extend benefits for an extra two years—covering up to four years of incentives for jobs created in this sector between August 2025 and July 2027.
Who Will Benefit?
3.5 crore jobs to be created.
1.92 crore first-time entrants are expected to benefit.
Focused on boosting urban and rural youth employment, especially for the 15–29 age group facing rising joblessness.
Why Now?
The ELI scheme was first announced in the Union Budget 2024, part of a larger Rs 2 lakh crore package aimed at skill development, entrepreneurship, and employment opportunities for India’s youth. The push comes amid concerns over rising unemployment despite strong GDP growth and is seen as a politically significant step following BJP’s seat losses in the 2024 elections.