Cabinet announces incentive scheme to generate more jobs, focusing on manufacturing sector
The Union Cabinet has approved an Employment-Linked Incentive (ELI) scheme with an allocation of ₹99,446 crore to boost job creation, primarily in manufacturing. The scheme offers incentives to first-time employees (one-month wage up to ₹15,000) and employers (up to ₹3,000 per month for two years, extended for manufacturing). It aims to create over 3.5 crore jobs, with 1.92 crore beneficiaries being first-timers. Benefits are applicable for jobs created between August 1, 2025, and July 31, 2027, as part of a larger government package for youth employment and skilling.
Key Points
- The Union Cabinet has approved the Employment-Linked Incentive (ELI) scheme to stimulate job creation, particularly in the manufacturing sector.
- The scheme offers financial incentives to both first-time employees and employers for generating additional employment.
- It targets the creation of over 3.5 crore jobs, with a significant focus on integrating new entrants into the workforce.
- Benefits are time-bound, applicable to jobs created within a specific two-year window.
- The scheme is part of a larger government package aimed at facilitating employment and skilling for youth.
Exam Facts
- ELI scheme allocation: ₹99,446 crore.
- Target job creation: over 3.5 crore jobs.
- First-time employee wage incentive: up to ₹15,000 (one-month wage).
- Employer incentive: up to ₹3,000 per month for two years (extended for manufacturing).
- Scheme benefits applicable for jobs created between August 1, 2025, and July 31, 2027.
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