Modi Government Launches ₹99,446 Cr Plan to Create 3.5 Crore Jobs
📢 What is the ELI Scheme?
The Employment-Linked Incentive (ELI) Scheme was officially approved by the Union Cabinet on July 1, 2025, under the chairmanship of Prime Minister Narendra Modi. With a total budget outlay of ₹99,446 crore (approx. $11.7 billion), the scheme aims to generate over 3.5 crore (35 million) formal sector jobs between:
🗓️ August 1, 2025 – July 31, 2027
🔹 Key Components of the ELI Scheme
Part A – Support for First-Time Employees
- Target: ~1.92 crore (19.2 million) first-time workers in the formal sector
- Incentive:One-month EPF wage subsidy (max ₹15,000), disbursed in two installments:
- 1st Installment: After 6 months of continuous employment
- 2nd Installment: After 12 months + completion of a financial literacy course
- A portion is locked into savings, promoting long-term financial planning
Part B – Employer Incentives
- Employers can claim up to ₹3,000/month per new employee for 2 years (if the employee stays ≥ 6 months)
- Extended incentives for manufacturing firms into the 3rd and 4th year
- Eligibility criteria:
- Firms with <50 employees must hire at least 2 new workers
- Firms with ≥50 employees must hire at least 5
🎯 Objectives & Goals
The ELI scheme is a major initiative within the Modi government’s ₹2 lakh crore 2024–25 employment and skilling stimulus package. The primary objectives include:
- Encouraging formal workforce entry
- Providing financial security via EPF and savings
- Boosting youth employment
- Revitalizing the manufacturing sector
- Addressing urban (17.9%) and rural (13.7%) youth unemployment as of May 2025
💬 Government Statements
🗣️ Labour Minister Mansukh Mandaviya:
“The ELI scheme will be implemented in mission mode to ensure timely delivery.”
🗣️ PM Narendra Modi (via X/Twitter):
“By incentivising first-time workers, boosting manufacturing, and encouraging employer participation, [the scheme] reflects smart, inclusive policymaking.”
🛠 Implementation & Delivery
- Direct Benefit Transfer (DBT) system:
- Employees: Aadhaar-linked bank accounts
- Employers: PAN-linked accounts
- Eligibility:
- Must be EPFO-registered
- Employees must earn ≤ ₹1 lakh/month
- Administered by the Ministry of Labour & Employment
- Nationwide enrollment drive to ensure seamless onboarding
📌 Summary: Why the ELI Scheme Matters
The ELI Scheme is a bold and ambitious jobs strategy built on dual pathways:
👨💼 For Job-Seekers:
- Incentivizes first-time formal sector employment
- Encourages long-term financial savings and literacy
🏭 For Employers:
- Financial support for workforce expansion
- Extra incentives for manufacturing sector growth
If implemented effectively, the scheme can reduce youth unemployment, formalize the informal sector, and revive India’s job-intensive industries.
📄 Disclaimer
This article is for informational purposes only and is based on publicly available data and media reports. While we strive for accuracy, readers should refer to official government announcements or consult the Ministry of Labour & Employment for the most updated details and eligibility criteria.
