The job landscape in India is ever-evolving, majorly influenced by transforming business ecosystems and economic policies. One such transformative endeavor that has been making waves since its inception is the Production-Linked Incentive (PLI) scheme. Its benefits extend beyond just supporting domestic industry; it creates job opportunities for Indians. The government of India’s initiative to further enhance manufacturing capabilities and exports for ten more labor-intensive sectors, ranging from food processing to textiles, in addition to its already established sectors, such as allied equipment for mobile phones, pharmaceuticals, and medical devices. This dynamic scheme, geared toward boosting manufacturing in India, is making a substantial impact on the country's job creation landscape.

As the PLI scheme continues to gain momentum, it has garnered attention for its potential to revolutionise employment in India. The numbers speak volumes – a significant portion of employers anticipate a surge in hiring, citing an uptick in employee productivity and greater investment in Micro, Small, and Medium Enterprises (MSMEs). 

The impact of the PLI scheme on job creation is apparent, with a significant portion of employers expressing optimism about the scheme's potential. According to a recent survey, a staggering 60 per cent of employers anticipate an increase in hiring over the next two years as a direct result of the PLI scheme. This surge in job creation can be attributed to the scheme's incentive structure, which encourages businesses to expand and diversify their operations within the specified sectors.

Moreover, the survey reveals that 69 per cent of employers believe that the PLI scheme will have a profound impact on employee productivity. By providing incentives for manufacturing, the scheme fosters a competitive environment, pushing companies to adopt cutting-edge technology and best practices, ultimately resulting in improved productivity.

While large corporations play a pivotal role in India's economic landscape, it's the Small and Medium Enterprises (SMEs) that often act as the backbone of the nation's job market. The PLI scheme is a game-changer for these smaller organisations, as it provides them with a substantial boost.

A striking 72 per cent of small organisations foresee an increase in hiring by up to 20 per cent over the next two years, thanks to the PLI scheme. For these businesses, the incentives provided by the government can make a world of difference, allowing them to expand their operations and create jobs at an accelerated pace. In addition to job creation, these organisations also reap the benefits of enhanced employee productivity, with 77 per cent of medium organisations expressing their belief in the scheme's positive impact. 

One of the cornerstones of the PLI scheme's success lies in its potential to attract investment in Micro, Small, and Medium Enterprises (MSMEs). A robust MSME sector is vital for job creation and fostering economic growth. With the PLI scheme in play, 54 per cent of employers believe it is extremely likely to attract investments in MSMEs. The scheme's attractive incentives, such as capital subsidies and financial support, make it more feasible for smaller businesses to thrive in the competitive market. As these MSMEs flourish, they generate more employment opportunities, further solidifying the scheme's impact on the job landscape.

The impact of the PLI scheme on job creation isn't limited to specific regions or demographics. Recent revelations from the survey done by Teamlease Services have showcased preferred locations by male and female employees. Coimbatore and Hyderabad are the two model cities, demonstrating equal preference for both genders. This gender-neutral approach to job creation is a testament to the scheme's inclusivity and capacity to empower individuals from all walks of life.

As we look ahead, the impact of the PLI scheme on job creation holds the potential to redefine the economic and employment dynamics of India. It has the potential to create 60 lakh new jobs in five years, starting from 2021-22. It represents a leap towards a self-reliant and prosperous future, where the aspirations and dreams of the workforce find new avenues for fulfillment. With the PLI scheme at the helm, we can expect a future where job opportunities are not just numbers but stepping stones to a brighter and more inclusive tomorrow.

Krishnendu Chatterjee is the VP and Business Head at TeamLease Services Ltd. He has been with TeamLease for more than six years and currently heads the Banking and Financial Services and Industrial Verticals. He brings about 17 years of management experience, working with leading organisations including JPMorgan Chase, Kean Consulting, SilverSkils etc. In his current role at TeamLease, Chatterjee is responsible for managing about Rs 3,000 crore in annual revenue with a strong base of over 93,000 fixed term contractors, leading the business development, account management and hiring.