Government Initiatives for Employment and Innovation

Employment-Linked Incentive (ELI) Scheme

• The government has approved a ₹99,446 crore ELI scheme.
• Aims to create over 35 million formal jobs over two years, focusing on the manufacturing sector.
• Part of a broader strategy to formalize the workforce, enhance savings, and provide social security.
• Targets job creation for first-time employees and incentivizes employers.

Research Development And Innovation (RDI) Scheme

• Approved with a ₹1 lakh crore budget.
• Provides long-term financing or refinancing at low/zero interest.
• Aims to boost private sector investment and catalyze job creation across sectors.

Implementation and Benefits

The ELI scheme is part of the Prime Minister’s package aimed at facilitating employment and skilling for 41 million youth with a total outlay of ₹2 lakh crore.

• Jobs covered from August 1, this year to July 31, 2027.
• Part A: Supports first-time employees with wages up to ₹15,000.
• Part B: Incentivizes employers for generating additional employment.

Scheme Details

• First-Time Employees
  • Receive one month’s wage, capped at ₹15,000.
  • Payments in two instalments: after six months and after 12 months, upon completion of a financial literacy program.
  • A portion of the incentive is saved in a deposit account for later withdrawal.
• Employers
  • Incentives of up to ₹3,000 per month for two years for each additional employee.
  • Extended incentives for third and fourth years in the manufacturing sector.

Expected Impact

• Approximately 19.2 million beneficiaries expected to be first-time employees.
• Additional 26 million jobs anticipated through employer incentives.
• The scheme will be implemented by the Employees’ Provident Fund Organisation (EPFO).

Overall, this initiative is seen as a promising step toward enhancing employment opportunities and supporting economic growth.