In a major move to support employment and boost innovation, the Union Cabinet chaired by Prime Minister Narendra Modi has approved two key schemes worth over ₹2 lakh crore. Union Minister Ashwini Vaishnaw announced the details during a press briefing on Tuesday. These include the Employment Linked Incentive (ELI) scheme and the Research Development and Innovation (RDI) scheme, both aimed at improving job opportunities and encouraging private sector-led research.
Job Creation Gets a Boost with ₹1.07 Lakh Crore
The government has approved ₹1.07 lakh crore for the first phase of the ELI scheme, which was announced in the Union Budget 2024–25. The scheme will run for five years with a total budget of ₹2 lakh crore and is expected to help create over 3 crore new jobs.
The scheme has three parts:
Plan A: One month’s salary will be given directly to each newly hired worker.
Plan B: Support for manufacturing firms to hire more staff.
Plan C: Financial help for companies creating extra jobs in any sector.
Additionally, ₹63,000 crore will go towards internship and skill training programs to help youth become job-ready, and ₹30,000 crore will be used to upgrade ITIs with modern, industry-relevant courses.
₹1 Lakh Crore for Research and Innovation
The Cabinet has also approved ₹1 lakh crore for the RDI scheme to support private investment in research and emerging technologies.
The plan will offer long-term loans at little or no interest to companies working in key sectors. It will also back projects involving critical technologies and support start-ups through a special deep-tech fund.
The scheme will be overseen by the Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister, and implemented by the Department of Science and Technology.
Other Cabinet Approvals
- ₹1,853 crore to widen the Paramakudi–Ramanathapuram highway
- Continued work on the Ramanathapuram–Dhanushkodi highway
- Approval of Khelo India Policy 2025 to replace the existing National Sports Policy
