In a significant move to address unemployment, the central government has approved the ambitious ‘Employment Linked Incentive (ELI)’ scheme, aiming to create 3.5 crore new job opportunities over the next two years. The decision was taken during a Cabinet meeting chaired by Prime Minister Narendra Modi, with a massive ₹1 lakh crore budget allocated for the initiative.
The ELI scheme is specially designed for first-time job seekers, offering them a financial incentive to join the workforce. As part of the scheme, the government will provide a subsidy equivalent to one month’s salary, capped at ₹15,000, in two installments. The first installment will be released after six months, and the second after 12 months of employment. The amount will be disbursed directly to companies, encouraging them to hire more fresh talent.
According to Union Minister Ashwini Vaishnaw, the scheme will place special emphasis on the manufacturing sector. If a company retains an employee for at least one year, it will receive a monthly subsidy of ₹3,000 per employee. This initiative is expected to not only boost job creation but also strengthen social security and corporate hiring capacity, especially for inexperienced candidates.
In addition to the ELI scheme, the Cabinet also approved the ‘Research, Development and Innovation (RDI)’ scheme, aimed at supporting private sector research in emerging and advanced technologies. This move is expected to enhance India's innovation ecosystem. Furthermore, the Cabinet gave the green light to the four-laning project of the Paramakudi–Ramanathapuram highway in Tamil Nadu, which is set to improve regional connectivity and promote local economic development.
The ELI scheme is being seen as a strategic and effective step to combat unemployment, stimulate the manufacturing sector, and empower the youth of the country. With large-scale job creation and support for innovation, the Modi government aims to drive inclusive economic growth in the years ahead.