The Modi government has taken a significant step to boost employment by approving a new scheme worth ₹1.07 lakh crore aimed at generating jobs for the youth. The decision was made during the Union Cabinet meeting held on Tuesday. In addition, the Cabinet has approved ₹1 lakh crore to strengthen Research and Development (R&D) across the country.
What is the ELI Scheme?The Employment Linked Incentive (ELI) Scheme was introduced in the 2024–25 Union Budget to promote formal job creation. It aims to create more job opportunities for the youth and encourage private companies to hire more workers. The scheme will run for five years with a total budget of ₹2 lakh crore. In the first phase, ₹1.07 lakh crore has been approved.
Three Main Job Plans Under the ELI SchemeThe ELI scheme is structured into three major plans: Plan A offers one month’s salary as a direct benefit to newly hired workers. Plan B focuses on boosting employment specifically in the manufacturing sector. Plan C provides financial support to companies for creating additional jobs across all sectors. Together, these plans are expected to generate around 3.1 crore new jobs across the country.Focus on Skill Training and EducationTo enhance job readiness among youth, the Cabinet has also approved ₹63,000 crore for internship programs focused on skill training and ₹30,000 crore to modernize Industrial Training Institutes (ITIs). This investment aims to improve training infrastructure and equip students with industry-relevant skills.Benefits of Cabinet DecisionsThe ELI scheme will support both new employees and employers. Youth will benefit from better skill development and formal employment opportunities. ITIs will provide more advanced technical education. R&D funding will drive innovation and improve competitiveness across industries.Other Major ApprovalsThe Cabinet also cleared several key infrastructure and policy decisions, including ₹1,853 crore for widening the Paramakudi–Ramanathapuram National Highway to four lanes, progress on the Ramanathapuram–Dhanushkodi highway, and the approval of the Khelo India Policy 2025, which will replace the current National Sports Policy. These decisions highlight the government’s continued focus on employment generation, youth development, and infrastructure growth.