Consider the following statements with respect to Employment Linked Incentive (ELI) Scheme:
1. It aims to encourage private sector companies to create new formal employment by providing incentives based on the number of new jobs generated.
2. It specifically targets labor-intensive sectors such as textiles, garments, and footwear to promote large-scale job creation.
3. Only businesses registered as Micro, Small, and Medium Enterprises (MSMEs) are eligible to receive benefits under the ELI Scheme.

Which of the statement(s) given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Question

Consider the following statements with respect to Employment Linked Incentive (ELI) Scheme:
1. It aims to encourage private sector companies to create new formal employment by providing incentives based on the number of new jobs generated.
2. It specifically targets labor-intensive sectors such as textiles, garments, and footwear to promote large-scale job creation.
3. Only businesses registered as Micro, Small, and Medium Enterprises (MSMEs) are eligible to receive benefits under the ELI Scheme.

Which of the statement(s) given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

ONLiNE UPSC · Accepted Answer

Statement 1 is correct: The Employment Linked Incentive (ELI) Scheme is designed to boost formal job creation, especially in the manufacturing sector. It provides financial incentives to employers for generating additional employment, and to first-time employees for joining the formal workforce. The incentives are directly linked to the number of new jobs created and sustained by private sector companies.

Statement 2 is not correct: While the scheme places a special focus on the manufacturing sector, which includes many labor-intensive industries, it is not specific to sectors like textiles, garments, or footwear. The ELI scheme aims to support employment generation and social security across all sectors, with a particular emphasis on manufacturing.

Statement 3 is not correct: There is no restriction on who can apply under the scheme. The ELI Scheme is open to all eligible employers registered with the Employees' Provident Fund Organisation (EPFO), no matter how big or small the company is. Both large companies and MSMEs can benefit from the scheme if they meet the eligibility conditions, such as hiring new employees and registering them with the EPFO.

Employment Linked Incentive (ELI) Scheme

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M Question 1	⏱ 0
Consider the following statements with respect to Employment Linked Incentive (ELI) Scheme: 1. It aims to encourage private sector companies to create new formal employment by providing incentives based on the number of new jobs generated. 2. It specifically targets labor-intensive sectors such as textiles, garments, and footwear to promote large-scale job creation. 3. Only businesses registered as Micro, Small, and Medium Enterprises (MSMEs) are eligible to receive benefits under the ELI Scheme. Which of the statement(s) given above is/are correct? (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3