How the Employee Linked Incentive (ELI) Scheme Supports Job Creation in India

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  • Admin
  • 29 October, 2024

The Employment-Linked Incentive (ELI) Scheme marks a pivotal shift in India’s approach to job creation, particularly within the Micro, Small, and Medium Enterprises (MSME) sector. Aiming to generate over two crore jobs within two years, the scheme focuses on formalizing employment in this essential sector, supporting skill development, and promoting gender inclusion to drive economic growth.

Designed to cater to MSMEs—responsible for over 633.9 lakh enterprises across India—the ELI Scheme addresses the informal nature of much of the workforce. According to Economic Times, our Chief Strategy Officer, Sumit Kumar, emphasized that by providing wage subsidies and offering financial support, the ELI Scheme will make formal employment more accessible to low- and middle-income groups who typically face the highest risk of remaining in informal work environments.

The scheme also prioritizes skill building, particularly in transversal skills like digital literacy, communication, and problem-solving. By nurturing these competencies, MSMEs can develop a highly adaptable workforce that is not only prepared to meet current market needs but also resilient in the face of economic challenges.

The initiative further bridges the gap between education, skill development, and employment by aligning workforce training with industry standards. Sumit Kumar highlights that integrating these skill-building efforts will help drive productivity and economic resilience, ultimately enhancing job opportunities for millions of Indian youth.

Through initiatives like the ELI Scheme, the Indian government is creating a pathway toward structured, skill-oriented job opportunities that support long-term growth and sustainability in India’s rapidly evolving job market.

For detailed insights into the ELI Scheme, you can read the full article in The Economic Times

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