The central government will launch a major job-linked incentive scheme on August 1, aiming to generate employment for 3.5 crore individuals. This nationwide plan focuses on incentivising private companies and state governments to create new job roles across sectors like manufacturing, services, logistics, and infrastructure.
What the Scheme Promises?
The scheme offers financial rewards to companies that generate verified employment. Employers will receive incentives based on the number of jobs they create, the nature of the roles, and the salary brackets involved. State governments participating in the scheme will also get additional funds based on performance metrics.
Each job created must follow a formal contract and ensure social security benefits such as EPFO and ESIC coverage. The idea is to promote stable, long-term employment rather than gig-based or informal roles.
Industries in Focus
While the plan is open to all sectors, there will be a special push for jobs in manufacturing, logistics, renewable energy, and services like tourism and hospitality. MSMEs are expected to be key players. Government officials believe that sectors with high employment elasticity will drive faster results under this framework.
Tech-enabled tracking will be used to verify job creation data submitted by participating firms. The system is expected to plug leakages and ensure transparency.
Why This Matters Now?
India has seen a sharp increase in youth unemployment, particularly among graduates and diploma holders. This new scheme is being pitched as part of a broader push to address that challenge. It also fits into the larger strategy to make India a global manufacturing and supply chain hub.
What Comes Next?
A dedicated job portal and dashboard will go live with the launch. Firms interested in participating must register and provide baseline employment data. The first review of the scheme impact is scheduled for December.
The government hopes this approach will build momentum toward its long-term employment goals while easing the stress in both urban and rural labour markets.
