In a major policy decision chaired by Prime Minister Narendra Modi, the Union Cabinet has approved the ₹2 lakh crore Employment Linked Incentive (ELI) scheme. The initiative targets the creation of 3.5 crore new jobs between 2025 and 2027.

The ELI scheme will offer financial incentives to youth joining the workforce for the first time through companies registered with the Employees' Provident Fund Organisation (EPFO). Those who complete one year of employment will receive up to ₹15,000 as a direct benefit transferred to their bank accounts.

Employers hiring fresh candidates and retaining them for at least six months will also be eligible for a monthly incentive ranging from ₹1,000 to ₹3,000 per employee. The amount will vary based on salary brackets, and in the case of the manufacturing sector, the benefits will be available for up to four years.

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Additionally, the scheme will provide mandatory skill development training. Beneficiaries must complete government-approved online courses focusing on financial literacy and professional responsibility.

The government has emphasized that this is not a short-term remedy to unemployment, but rather a long-term structural step toward sustainable economic growth and youth empowerment in India.