India Approves Incentive Plan to Spur Job Growth
The Union Cabinet has greenlit an Employment Linked Incentive (ELI) Scheme, a move projected to generate substantial employment opportunities within the manufacturing sector. The initiative seeks to create jobs and boost domestic manufacturing.
Cabinet Approves Massive Job Creation Plan
The Indian cabinet has approved a substantial $11.7 billion incentive plan aimed at creating as many as 35 million new jobs. The approved Employment Linked Incentive scheme intends to stimulate employment across various sectors over the next two years.
The scheme will also extend benefits to first-time employees in the private sector, offering them up to ₹15,000. This provision aims to encourage companies to hire new personnel and expand their workforce.
Details of the Employment Linked Incentive Scheme
The approved scheme aims to generate over 35 million jobs within two years. Sectors such as textiles and electronics are expected to benefit significantly, driving economic growth and creating a wide array of employment prospects for the nation’s youth.
As part of the scheme, new employees in the private sector will receive ₹15,000. This financial support aims to boost job creation and provide opportunities for individuals entering the workforce for the first time.
Expert Insight
According to a report by the Centre for Monitoring Indian Economy (CMIE), India’s unemployment rate stood at 8% in early 2024, highlighting the need for such employment-generating schemes CMIE, 2024.
“The Employment Linked Incentive scheme is expected to provide a significant boost to the manufacturing sector, encouraging companies to create more jobs.”
—Unnamed Government Official
Scheme Impact
The incentives are structured to encourage manufacturing and job creation, with the government hoping to see a significant increase in both areas over the coming years. This initiative aligns with broader economic goals to strengthen India’s manufacturing base and reduce unemployment.
