Union Finance Minister Nirmala Sitharaman, on Tuesday, July 22, announced the Prime Minister’s package of five schemes to facilitate employment, education, and skills for youth with a central outlay of Rs. 2 lakh crores.
The package includes Employment Linked Incentives, as well as measures to boost skill training, increase women’s workforce participation, support MSMEs, and improve capital infrastructure. These efforts are designed to create a substantial positive impact on the nation’s employment landscape.
Major Schemes and Reforms
1. Employment Linked Incentives (ELI)
* Scheme A: Provides a one-month wage (up to Rs. 15,000) in three instalments to first-time employees in the formal sector registered with the Employee Provident Fund Organisation (EPFO).
* Scheme B: Incentivizes job creation in manufacturing by supporting additional hiring of first-time employees. Benefits are tied to EPFO contributions during the first four years of employment.
* Scheme C: Reimburses employers Rs. 3,000 per month for two years for each additional employee with a salary of up to Rs. 1 lakh per month.
2. Skill Development and Internships
* Scheme D: Aims to skill 20 lakh youth and upgrade 1,000 Industrial Training Institutes in collaboration with state governments and industry.
* Scheme E: Provides internship opportunities to one crore youth in top companies, with allowances of Rs. 5,000 per month and a one-time assistance of Rs. 6,000.
3. Labour Welfare Initiatives
* eShram Portal Integration: A unified platform for job seekers and skill providers to streamline labour welfare and employment connections.
* Revamping Portals: Improvements to the Shram Suvidha and Samadhan portals to enhance compliance and grievance redressal processes.
Additional Key Measures
* Infrastructure Investments: An 11% increase in capital expenditure to Rs. 11.11 lakh crore will create jobs in construction, transportation, and logistics.
* Entrepreneurship Support: Financial aid and tax benefits for start-ups and MSMEs to foster job creation.
* Rural Employment: Enhanced MGNREGA funding to support rural livelihoods and reduce urban migration.
* Industrial Growth: Development of “plug and play” industrial parks and National Industrial Corridor Development to spur manufacturing and services, creating millions of jobs.
