Rs 99,446 cr employment incentive scheme spurs optimism in J&K industrial sector

Srinagar, July 02: In a push towards inclusive job creation and industrial revival, the Government of India has unveiled the Employment Linked Incentive (ELI) scheme, with a massive outlay of Rs 99,446 crore to support the generation of over 3.5 crore new jobs across India. The scheme is being hailed as a “game-changer” by business leaders and entrepreneurs in Jammu & Kashmir, who believe it could dramatically alter the employment landscape of the Union Territory.The scheme, launched under the Ministry of Labour & Employment, offers dual incentives with Rs 15,000 in two installments to first-time job seekers in Part A while Part B grants employers up to Rs 3,000 per new hire per month, for up to two years, with extended benefits for the manufacturing sector into the 3rd and 4th year.For business owners in Kashmir Valley, where industrial activity often fluctuates due to political instability and lack of investment, the ELI scheme has brought a wave of cautious optimism.“This is the first time we’re seeing targeted hiring support directly linked to job creation. It means I can expand my operations and hire 10–15 new workers without worrying about wage liabilities in the initial phase,” said Zahid Raina, who runs manufacturing unit of paper cups and tissue papers.He added that this kind of monthly wage support is unheard of in the Indian MSME ecosystem. “For every new worker I hire, the government is practically helping me with Rs 36,000 a year. That’s a huge cost relief.”For border and remote districts like Poonch, Kupwara, and Kishtwar, the scheme is seen as a powerful antidote to youth migration, a long-standing issue in these areas.Bilal Lone, another young entrepreneur, who runs a unit manufacturing wooden handicrafts, said the ELI scheme could retain talent in the J&K.“Young people leave for Delhi or Punjab because they don’t see jobs locally. But now, if employers like me get incentives to hire, and the youth get Rs 15,000 in their first job, it creates a win-win situation,” he said.The scheme is particularly generous for the manufacturing sector, which will receive extended incentives for the third and fourth years. In J&K where industrialization has lagged behind due to infrastructure and security concerns, this extended cushion is being seen as a trust-building measure.Government officials and economic observers in J&K say the scheme will also encourage formal employment, which has traditionally been low in the UT. With mandatory registration and tracking mechanisms, the initiative is expected to reduce informal, undocumented hiring.A senior official from the Department of Industries and Commerce, J&K, speaking on condition of anonymity, said that this scheme will push small and medium businesses to formally hire and train workers. The benefit is mutual, employers save on costs, while employees get financial stability and eligibility for future benefits.Shabnam Farooq, who runs a women-led garment unit said that the scheme must be advertised and simplified for small business owners who are not familiar with digital paperwork. Otherwise, it may remain underutilized.She added that the Directorate of Employment and Industries Department J&K should conduct district-level workshops to help businesses register and apply smoothly.