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Cabinet Approves ELI Scheme: 3.5 Crore Jobs for India’s Youth – Key Details

In a major push for employment generation, the Modi government has approved the Employment Linked Incentive (ELI) Scheme, targeting 3.5 crore new jobs with a ₹1 lakh crore budget. This scheme is crucial for SSC, PSC, and design entrance exam aspirants as it highlights government policies impacting employment and economic growth.

Key Highlights of the ELI Scheme
Budget: Nearly ₹1 lakh crore under the Union Budget 2024-25.
Duration: Job creation from August 1, 2025, to July 31, 2027.
Target: 3.5 crore formal jobs, focusing on manufacturing and first-time employees.
Social Security: Mandatory EPFO registration for beneficiaries.

Two-Part Structure:
Part A – Incentives for First-Time Employees
1.92 crore new employees eligible.
One-month wage (up to ₹15,000) in two installments.
Financial literacy training required for full benefits.
Savings lock-in to promote future financial security.
Part B – Employer Support
Extra incentives for hiring new employees (6-month retention required).
Higher benefits for manufacturing firms (extended to 3rd & 4th years).
EPFO-registered employers only.

Why Is This Important for Exams?
Government schemes are frequently asked in SSC, PSC, and banking exams.
Current affairs related to employment policies are crucial for interview rounds.
GK sections in NID, NIFT, FDDI, and design exams often include economic policies.

Sample Questions & Answers
Q: What is the budget allocated for the ELI Scheme?
A: ₹1 lakh crore.
Q: How many jobs will the ELI Scheme generate?
A: 3.5 crore jobs by 2027.
Q: Which sector gets extended incentives under ELI?
A: Manufacturing (3rd & 4th-year benefits).
Q: What is the minimum employment period to avail benefits?
A: 6 months.
Q: How will employees receive incentives under Part A?
A: Through DBT via Aadhaar-linked payments in two installments.