In a significant policy move aimed at accelerating formal job creation and bolstering India’s long-term economic vision, the Union Cabinet has approved the Employment Linked Incentive (ELI) Scheme. The initiative, expected to generate over 3.5 crore jobs in two years, including 1.92 crore first-time workforce entrants, is being widely lauded by industry leaders as a transformative step toward achieving the Viksit Bharat@2047 mission.

A new chapter for formal employment and manufacturing growth

The ELI Scheme is designed not just to incentivise job creation but to deepen formalisation and social security across sectors—especially manufacturing, a cornerstone of India’s growth ambitions. Industry leaders see this as a progressive move that aligns with the government’s broader initiatives such as Make in India, PLI (Production Linked Incentive), and the National Manufacturing Mission.

Shaswat Goenka, Chairman, CII Eastern Region Council and Vice Chairman, RP-Sanjiv Goenka Group, called the ELI Scheme a “progressive and integrated policy that rightly places labour at the heart of national growth.” He added, “This initiative is set to drive employment, formalisation, and long-term sectoral productivity.”

Driving inclusion and industrial expansion

Harpreet Kaur, Chief Human Resources Officer, Godrej Enterprises Group, believes the scheme marks a pivotal moment in India’s economic and workforce journey. “With over 3.5 crore new jobs expected, including nearly 1.92 crore first-time entrants, the scheme provides a strong foundation for industrial growth and workforce formalisation, particularly in sectors like manufacturing where India is poised for growth,” she said.

Kaur added that for Godrej, the scheme offers a fresh opportunity to expand their talent base. “We will increase our intake in both white- and blue-collar roles. By aligning with national employment and skilling priorities, we aim to unlock inclusive growth and strengthen India’s industrial ecosystem.”

Focus on first-time job seekers and skilling

The ELI Scheme also includes key incentives: employers will receive benefits for hiring additional employees, provided they remain employed for at least six months. It also offers a one-month EPF wage (up to Rs15,000) in two instalments for eligible workers—making it especially attractive for first-time job seekers.

Santosh Rudrawar, Group CHRO, Sanjay Ghodawat Group, hailed the scheme as a “game-changing initiative” that will significantly boost employment and social security across sectors. “Opening doors for 1.92 crore first-time job seekers and providing sustained incentives to employers is a pivotal step,” he said.

Rudrawar emphasised that the scheme’s added focus on skill development and extended incentives for the manufacturing sector will help overcome long-standing industry challenges. “It’s a remarkable step toward India’s vision of becoming a global manufacturing hub,” he noted.

Building the future workforce

With its dual focus on formalisation and inclusive employment, the ELI Scheme is set to be a catalyst in shaping a more resilient, skilled, and secure workforce. As India eyes its 2047 development goals, this initiative represents a bold move to align labour policy with long-term industrial growth and social equity.