Dr. Mandaviya Leads Talks on ELI Scheme Rollout

Key Message:
The Employment Linked Incentive (ELI) Scheme is set to be a transformative step in India’s employment ecosystem, aiming to generate over 3.5 crore quality jobs by supporting employers and formalizing the workforce. The Centre and States have committed to working together to ensure its successful rollout for sustainable and inclusive growth.

Highlights:

• High-level virtual meeting held under Union Minister Dr. Mansukh Mandaviya‘s chairpersonship.
• ELI Scheme seen as the successor to the PLI Scheme, focused on employment generation.
• ₹99,446 crore outlay with a target to create 3.5 crore jobs in two years.
• First incentive disbursal only after six months of sustained employment.
• Labour Ministers from several states pledged full cooperation.
• Emphasis on simple processes, grassroots awareness, and Centre-State synergy.

Background/Context:
India has made remarkable progress in employment generation, with over 17 crore jobs created in the last decade, according to RBI’s KLEMS data. To build on this momentum, the Government of India has introduced the Employment Linked Incentive (ELI) Scheme, a strategic follow-up to the successful Production Linked Incentive (PLI) initiative. The ELI Scheme is tailored to deepen employment formalization, enhance employability, and drive economic inclusivity, particularly for youth.

The recent virtual meeting convened by the Union Ministry of Labour & Employment provided a collaborative platform for State Labour and Industry Ministers to align on strategy, implementation, and outreach of the scheme. The goal is to facilitate widespread adoption and reach even the remotest parts of the country.

Impact / What’s Next:
The ELI Scheme is poised to redefine job creation strategies by linking financial incentives to sustained employment outcomes. With a simplified framework, strong backing from state governments, and coordinated outreach campaigns, the initiative is expected to:

• Improve employment quality and job security.
• Drive industrial growth through workforce support.
• Expand social security coverage across sectors.
• Foster a culture of sustainable and long-term employment.

As a next step, States will spearhead district-level awareness drives, partner with industry associations, and integrate local employment initiatives with the ELI Scheme. These combined efforts are expected to create a robust employment generation ecosystem aligned with the vision of a self-reliant India.

“Labour and industry go hand in hand,” remarked Dr. Mandaviya, marking the beginning of a new chapter in collaborative employment strategies for strengthening India’s economicfoundation.