BS EDIT: Will the ELI Scheme Solve India’s Jobs Challenge?

By Business StandardPublished On Jul 3, 2025

What is the ELI Scheme?

The ELI scheme supports first-time employees and incentivises employers to create new formal jobs, aiming to link growth with employment

How It Works

Workers will get up to ₹15,000 in wage support, while employers can earn up to ₹3,000 per new hire for up to four years in manufacturing

Scale and Ambition

The scheme targets over 35 million jobs, combining direct worker benefits and employer incentives to boost formal workforce participation

Structural Hurdles

Skill gaps, outdated training, and rigid labour laws still limit India’s ability to generate large-scale, quality jobs

Can Skilling Reforms Help?

New skilling efforts are underway, but poor curricula and weak industry links may blunt their impact

A Step Forward, But Incomplete

The ELI scheme is timely, but without deeper reforms, it may fall short of transforming India’s job market