Q. With reference to the Employment Linked Incentive (ELI) scheme, consider the following statements:
1.Manufacturing and service sectors are primarily targeted by the ELI scheme.
2.Ministry of Labour and Employment is responsible for implementing the scheme.
3.Low-interest loans are provided under the scheme to the employer as incentives.
Which of the statements given above are correct?
Explanation –
Statements 1 and 2 are correct. The primary objective of the ELI scheme is to incentivize companies to create new employment opportunities by offering financial incentives for each new hire. This is designed to boost job creation and reduce unemployment. The ELI scheme primarily targets the manufacturing and service sectors. These sectors are crucial for economic growth and have significant potential for job creation, which aligns with the scheme’s objectives. The Ministry of Labour and Employment is the government body responsible for implementing the ELI scheme. This ministry oversees labor policies and employment-related initiatives, making it the appropriate authority for this scheme.
Statement 3 is incorrect. The ELI scheme provides financial incentives primarily in the form of tax rebates and financial grants, not low-interest loans. The focus is on direct financial support to encourage hiring rather than providing loans.
Source: The Hindu
