India’s new ₹1 trillion Employment Linked Incentive Scheme is the latest attempt to address the country’s deepening employment crisis, particularly in urban areas and the manufacturing sector. The government aims to create over 35 million jobs between August 2025 and July 2027 by providing income support to first-time employees and offering subsidies to firms that hire additional workers.This announcement underscores the urgency of India’s urban livelihood problem. Recent consumer surveys reveal persistent pessimism: employment sentiment remains weak, incomes are stagnant, and inflation pressures are widespread. Urban discontent is politically salient, and unlike rural income-support measures and food distribution programmes, this scheme explicitly targets the organised workforce.
.png)
