Summary:

Industry leaders expect the new employment-linked incentives to significantly boost India's $500 billion electronics sector by 2030. However, it remains uncertain whether these benefits will extend to contractual employees, as many OEMs rely on third-party labor. Mr. Rajoo Goel, ELCINA's Secretary General, anticipates substantial growth in domestic manufacturing over the next 6-7 years, potentially creating 1 million new jobs by 2026 and up to 5 million by 2030, requiring an additional $36 billion in investment.

Union Minister Nirmala Sitharaman announced three employment-linked incentive schemes to support first-time employees and companies in her recent budget speech. Scheme B focuses on bulk hiring in manufacturing, with US$ 6.21 billion (Rs. 52,000 crore) allocated over two years to create 3 million new jobs. Employers who hire 50 new employees or 25% more than the previous year will receive an 8-24% salary incentive. These measures aim to drive industrial growth and could result in up to 6 million direct jobs by 2030.

Source: IBEF 

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