July 2, 2025: In a significant policy push aimed at boosting job creation and technological advancement, the Union Cabinet has approved two major initiatives — the ₹99,446 crore Employment Linked Incentive (ELI) Scheme and the ₹1 lakh crore Research and Development Incentive (RDI) Scheme. These landmark decisions are expected to catalyze industrial growth and enhance India’s global competitiveness.

Welcoming the ELI Scheme, Hemant Jain, President of PHDCCI, stated: “PHDCCI welcomes the Cabinet’s approval of the ₹99,446 crore Employment Linked Incentive Scheme. This bold move promises to generate 3.5 crore jobs, boost first-time employment through substantial wage support, and catalyze manufacturing-sector growth.”

The ELI Scheme is designed to incentivize companies to expand their workforce by offering wage-linked subsidies, especially targeting first-time job seekers and women. The scheme is expected to have a transformative impact on labor-intensive sectors and help formalize employment across the economy.

In a parallel move to strengthen India’s innovation ecosystem, the Cabinet also approved the RDI Scheme, aimed at encouraging private investment in research and development through long-term, low-cost financing.

Commenting on this initiative, Hemant Jain added: “PHDCCI welcomes the Cabinet’s landmark approval of the ₹1 lakh crore RDI Scheme. This forward-looking initiative will considerably boost private sector participation in technology development and augurs well for our export-oriented firms. By enabling long-term, low-cost financing, the scheme aligns with India’s vision of becoming a global R&D hub and achieving technological self-reliance.”

Together, the ELI and RDI schemes represent a strategic combination of employment generation and innovation support — a twin-engine approach to fostering inclusive and sustainable economic growth in India.