Employment Linked Incentive Scheme: A Catalyst for Jobs, Economic Growth, and Formalisation

With the world fast moving towards automation, the Government of India's recently approved Employment Linked Incentive (ELI) scheme, comes as a very timely and measured step. With an outlay of nearly Rs 1 lakh crore, it is a bold policy intervention in India's evolving employment landscape especially in manufacturing sector.

- BY MS. JYOTI VIJ

Designed to support the creation of more than 3.5 crore jobs over the next two years, the ELI Scheme is not just an economic measure—it is a strategic investment in the future of India's workforce, directly supporting the Government's Viksit Bharat@2047 vision. ELI is going to be a major catalyst of job creation in the country.

Unlike many other countries where population would soon start reducing or have started reducing, India still has a large working-age population which needs to be supported by more job opportunities. The ELI Scheme seeks to bridge the persistent gap between job seekers and job creators, and more importantly, between informal work and formal employment.

Beyond the immediate employment outcomes, it is important to note that the ELI Scheme also strengthens India’s progress towards several Sustainable Development Goals (SDGs) particularly in SDG 8 (Decent Work and Economic Growth), by incentivising formal, long-term employment; in SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities), by offering targeted financial support to low-wage earners and first-time jobseekers.