Cabinet Nod For ELI Scheme To Create 3.5 Cr jobs
Employment Linked Incentive scheme aims to create 3.5 crore jobs with focus on manufacturing and first-time workers: Reports
NEW DELHI: The Union Cabinet on Tuesday approved two major schemes: Employment Linked Incentive (ELI) Scheme with an outlay of ₹1.07 lakh crore to support employment generation across all sectors and Research, Development and Innovation (RDI) Scheme with a corpus of ₹1 lakh crore to spur private-sector investment in research.
Under the ELI Scheme, administered through EPFO’s social-security framework, an estimated 3.5 crore jobs will be created over the next two years. First-time employees will receive one month’s wages (capped at ₹15,000), while employers will earn incentives for up to two years, extended by an additional two years for positions in the manufacturing sector. These benefits will apply to jobs created between August 1, 2025 and July 31, 2027. The scheme was first announced in the Union Budget 2024-25 as part of the Prime Minister’s package of five youth-focused initiatives.
Prime Minister Narendra Modi posted on X, “The Employment Linked Incentive (ELI) Scheme cleared by Cabinet will boost job creation. The focus on manufacturing and incentives for first-time employees will greatly benefit our youth.”
With an allocation of ₹99,446 crore, the ELI Scheme aims to bring 1.92 crore first-time workers into the formal workforce, contributing to the total target of 3.5 crore new jobs.
The RDI Scheme is designed to provide long-term, low- or no-interest financing to private enterprises in sunrise and strategic sectors. Its goal is to overcome funding constraints, foster innovation, and enhance competitiveness through risk and growth capital.
Modi added in another X post, “Today’s Cabinet decision relating to the Research, Development and Innovation (RDI) Scheme will be a game changer in the world of research and innovation. This scheme, with a corpus of ₹1 lakh crore, will have a major impact on emerging and sunrise sectors and will boost private-sector participation in R&D.”
Information and broadcasting minister Ashwini Vaishnaw said the ELI Scheme will enhance employability and social security across sectors, with special emphasis on manufacturing. He described the RDI Scheme as essential for scaling up private-sector research and development in domains critical to economic security and self-reliance.
Governance of the RDI Scheme will be overseen by the Anusandhan National Research Foundation (ANRF): the Prime Minister-chaired Governing Board will set strategic direction, while the executive council will finalise guidelines and recommend fund managers. An Empowered Group of Secretaries, led by the Cabinet Secretary, will approve scheme modifications and review performance. The Department of Science and Technology will act as the nodal implementation agency.