The Modi government has taken a major step to boost employment by approving a new scheme worth ₹1.07 lakh crore. This scheme aims to create jobs for the youth of India. The decision was made during a Union Cabinet meeting on Tuesday. Alongside this, the Cabinet also approved ₹1 lakh crore to strengthen Research and Development (R&D) across the country.
The Employment Linked Incentive (ELI) Scheme is a key part of this initiative. It was introduced in the 2024-25 Union Budget. The scheme aims to promote job creation and encourage private companies to hire more workers. It will run for five years with a total budget of ₹2 lakh crore. In its first phase, ₹1.07 lakh crore has been approved.
The ELI scheme features three major plans:
1. **Plan A** provides one month’s salary as a direct benefit for newly hired workers.
2. **Plan B** focuses on boosting employment in the manufacturing sector.
3. **Plan C** offers financial support to companies for creating additional jobs across all sectors.
Together, these plans are expected to generate around 3.1 crore new jobs throughout the country.
The Cabinet also allocated ₹63,000 crore for internship programs aimed at skill training and ₹30,000 crore to modernize Industrial Training Institutes (ITIs). This investment aims to improve training infrastructure and equip students with essential industry-relevant skills. The goal is to enhance job readiness among the youth.
The benefits of the Cabinet’s decisions include improved skill development and formal employment opportunities. Youth will have better chances of securing jobs, while ITIs will provide more advanced technical education. Moreover, the funding for R&D will drive innovation and enhance competitiveness across industries.
Other notable approvals by the Cabinet include ₹1,853 crore for widening the Paramakudi-Ramanathapuram National Highway and progress on the Ramanathapuram-Dhanushkodi highway. The government has also approved the Khelo India Policy 2025, set to replace the current National Sports Policy. These approvals indicate the government’s ongoing commitment to employment generation and youth development.
The ELI scheme aims to support both new employees and employers. First-time employees registered with the Employees’ Provident Fund Organisation (EPFO) will receive one month’s wages, up to ₹15,000, in two installments. This is designed to promote financial discipline, as a part of the incentive will be placed in a savings account for a fixed period.
The scheme is structured to incentivize employers as well. For every additional employee hired, employers can receive benefits for a period of up to two years. This is particularly focused on the manufacturing sector, where incentives will extend to cover the third and fourth years as well.
The government’s initiative is expected to formalize the workforce in the country. It aims to extend social security coverage to millions of young men and women entering the job market for the first time. Overall, this scheme reflects the government’s proactive approach to tackle unemployment and improve the livelihoods of the youth in India.
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