India’s Labour Secretary Vandana Gurnani, on Monday, July 14, urged Global Capability Centres (GCCs) to actively engage with the government’s Employment Linked Incentive (ELI) scheme, warning that it could face the same lack of traction as the earlier PM internship programme.“I hope the Employment Linked Incentive scheme doesn’t meet the same fate as the PM internship scheme with respect to GCCs,” Gurnani said, calling on the industry to “study the ELI scheme and participate.”
Speaking at the CII GCC Summit, Gurnani noted a steady rise in workforce participation, adding that GCCs have played a role in that shift. However, youth unemployment remains a concern, currently hovering around 10% in India – below the global average of 13% but still significant.
The government has combined 39 labour laws into four codes to ease compliance, but implementation is still pending. Gurnani said coordination with state governments is ongoing to facilitate the adoption of these labour codes and rationalise additional regulations.The remarks come as the Centre seeks deeper private sector engagement to boost formal job creation, especially in high-growth sectors such as IT, analytics, and financial services.Also Read: ELI scheme to offer cash support to first-time workers and employers hiring new staffAnnounced on July 1, the ELI scheme plans to generate 3.5 crore formal jobs by July 2027, of which 1.9 crore are expected to be first-time formal workers.The scheme, split into two parts, offers first-time employees with income up to ₹1 lakh per month an incentive of ₹15,000 to be paid in two installments after completing six and twelve months. The amount will be credited directly into the beneficiary’s bank accounts and workers will have to undergo financial literacy training, and a part of the benefit will be earmarked for savings.Companies, on the other hand, stand to benefit up to ₹3,000/month per new employee hired in two years. This is extended to four years for manufacturing units, with eligibility based on EPFO registration and minimum hiring thresholds. India’s informal economy accounts for an overwhelming share of employment, with workers lacking access to provident funds, insurance, or job security.
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