On July 2, 2025, the Government of India approved the Employment Linked Incentive (ELI) Scheme with an allocation of ₹99,446 crore to generate over 3.5 crore jobs nationwide. The policy, announced by the Union Cabinet in New Delhi, is designed to boost formal employment, especially in the manufacturing sector, by providing wage-linked support to employers who create new jobs for first-time workers.
The Union Cabinet of India has sanctioned the Employment Linked Incentive (ELI) Scheme with a total financial outlay of ₹99,446 crore. This landmark decision, taken on July 2, 2025, aims to create over 3.5 crore jobs across the country in the next two years, particularly in industrial hubs like Maharashtra, Tamil Nadu, and Gujarat.
The ELI Scheme is designed to promote sustained employment generation by incentivizing companies to hire first-time employees and retain them. Employers in the manufacturing and allied sectors will receive wage support for creating additional jobs, making the scheme one of India’s most significant employment interventions in recent times.
The focus of the scheme lies in boosting job creation while also empowering the formal economy. It provides incentives that directly benefit both job seekers and job creators, thus enhancing the overall employment ecosystem.
Officials noted that the move comes in response to India’s growing youth population entering the workforce. By supporting industries with wage incentives, the government seeks to strengthen sectors that have high employment potential and face skill supply challenges.
The Union Cabinet, chaired by the Prime Minister, expects the scheme to contribute not just to employment but also to increased industrial productivity and economic inclusion.
The rollout of the scheme is expected to commence later this year, with guidelines and registration processes to be released soon.
