Latest news with #SumitaDawra
India Gazette
01-07-2025
- Business
- India Gazette
Employment Linked Incentive scheme expected to generate over 3.5 crore jobs: Sumita Dawra
New Delhi [India], July 1 (ANI): Following the Union Cabinet's approval of the Employment Linked Incentive (ELI) Scheme to support employment generation, former secretary of the Ministry of Labour and Employment, Sumita Dawra, said that the scheme is expected to generate over 3.5 crore jobs. The Union Cabinet, chaired by Prime Minister Narendra Modi, on Tuesday approved the Employment Linked Incentive (ELI) Scheme to support employment generation, enhance employability and social security across all sectors, with special focus on the manufacturing sector. Speaking to ANI about the scheme, former secretary of the Ministry of Labour and Employment, Sumita Dawra, said, 'This scheme was announced in the Union budget 2024-2025 with a historic budgetary announcement of more than Rs 1 lakh crore. The scheme has been prepared with a lot of consultation with industry, trade unions, more than 25 ministries of the government of India, with all the state governments, and with the regional workshops, which were done in the states to consult the industry there and the officers, so it's a consultative approach.' 'The Prime Minister was very clear that the scheme should be simple and effective so that the real benefit of the scheme reaches the youth of the country, particularly the first-timers who are entering the workforce, and also it serves as an incentive for employment generation, particularly in the manufacturing sector... More than 3.5 crore jobs are expected as a result of the scheme.' Chandrajit Banerjee, Director General of the Confederation of Indian Industry (CII), echoed similar sentiments. 'This is a much-needed and timely intervention. The industry has long advocated for an employment-linked incentive scheme to drive job creation and workforce formalisation,' she said. Banerjee expressed optimism that the scheme would significantly increase EPFO coverage and bring more workers under the social security net. Union Minister Ashwini Vaishnaw had earlier briefed the media about the scheme's structure, which is designed in two parts, aiming to ease hiring challenges and encourage employers to recruit young people entering the workforce for the first time. According to an official release, under the ELI scheme, first-time employees will receive one month's wage up to Rs 15,000. Employers will receive incentives for two years for generating additional employment, with extended benefits for an additional two years in the manufacturing sector. The ELI Scheme was announced in the Union Budget 2024-25 as part of the PM's package of five schemes to facilitate employment, skilling and other opportunities for 4.1 crore youth with a total budget outlay of Rs 2 lakh crore. With an outlay of Rs 99,446 Crore, the ELI Scheme aims to incentivise the creation of more than 3.5 crore jobs in the country over 2 years. Out of these, 1.92 Crore beneficiaries will be first-time entrants into the workforce. The benefits of the Scheme will apply to jobs created between August 1, 2025, and July 31, 2027. The scheme consists of two parts, with Part A focused on first timers and Part B focused on employers. Targeting first-time employees registered with EPFO, this Part will offer a one-month EPF wage up to Rs 15,000 in two instalments. Employees with salaries up to Rs 1 lakh will be eligible. The 1st instalment will be payable after 6 months of service, and the 2nd instalment will be payable after 12 months of service and completion of a financial literacy programme by the employee. To encourage the habit of saving, a portion of the incentive will be deposited into a savings instrument or deposit account for a fixed period and can be withdrawn by the employee at a later date. Part A will benefit around 1.92 crore first-time employees, while Part B will provide support to employers. This part will cover the generation of additional employment in all sectors, with a special focus on the manufacturing sector. Employers will receive incentives for employees with salaries up to Rs 1 lakh. The Government will incentivise employers, up to Rs 3000 per month, for two years, for each additional employee with sustained employment for at least six months. For the manufacturing sector, incentives will also be extended to the 3rd and 4th years. Establishments registered with EPFO will be required to hire at least two additional employees (for employers with fewer than 50 employees) or five additional employees (for employers with 50 or more employees) on a sustained basis for at least six months. All payments to the first-time employees under Part A of the Scheme will be made through the DBT (Direct Benefit Transfer) mode using the Aadhar Bridge Payment System (ABPS). Payments to the Employers under Part B will be made directly into their PAN-linked Accounts. With the ELI Scheme, the government intends to catalyse job creation in all sectors, particularly in the manufacturing sector, while also incentivising young people joining the workforce for the first time. An important outcome of the Scheme will also be the formalisation of the country's workforce by extending social security coverage for crores of young men and women. (ANI)
India Gazette
01-07-2025
- Business
- India Gazette
ELI Scheme gets industry thumbs-up as game-changer for job creation
New Delhi [India], July 1 (ANI): Indian industry leaders have hailed the government's approval of the Employment Linked Incentive (ELI) Scheme as a bold and timely move to tackle India's pressing job creation challenge. The business executives and policy experts believe that the scheme will transform the employment landscape, as it focuses on formalising the workforce, empowering first-time job seekers, and reducing hiring costs for employers--especially in labour-intensive and capital-constrained sectors. Many have compared its potential impact to that of the Production Linked Incentive (PLI) scheme, calling it a 'game-changer' for youth employment, regional development, and growth of MSMEs. The Union Cabinet on Tuesday approved the much-anticipated Employment Linked Incentive (ELI) Scheme, aimed at generating over 3.5 crore jobs and providing a major boost to formal employment, particularly in labour-intensive sectors such as manufacturing, textiles, tourism, and construction. Welcoming the move, Chandrajit Banerjee, Director General, Confederation of Indian Industry (CII), said, 'ELI is a significant step towards boosting employment and formalising India's workforce. The ELI scheme opens doors for first-time job seekers, empowering them to contribute meaningfully to India's growth story. It empowers employers to expand their workforce and gives a decisive push to India's labour-intensive sectors.' With an outlay of Rs 99446 crore, the ELI Scheme will support the creation of over 3.5 crore jobs. Sumita Dawra, former Secretary, Ministry of Labour & Employment, said that the scheme has been prepared with a lot of consultation with industry, trade unions, more than 25 ministries of the government of India, with all the state governments, and with the regional workshops, which were done in the states to consult the industry there and the officers. 'PM was very clear that the scheme should be simple and effective so that the real benefit of the scheme reaches the youth of the country, particularly the first-timers who are entering the workforce, and also it serves as an incentive for employment generation, particularly in the manufacturing sector... More than 3.5 crore jobs are expected as a result of the scheme,' she said. Subhrakant Panda, Managing Director of IMFA, said, 'The scheme will drive employment, especially in the manufacturing sector, by taking an innovative approach that provides support to those entering the workforce for the first time with incentives for sustained employment. This will be a game changer for the labour-intensive industries and MSMEs.' Dr Ranjeet Mehta, CEO and Secretary General of PHD Chamber of Commerce and Industry (PHDCCI), said the scheme comes at a time when India's youth population is at its peak. 'This announcement by the government is very important, as India has the world's largest youth population. We have a demographic dividend and having this kind of scheme will definitely create employment for our youth population. Secondly, it also incentivises industries, especially the MSMEs who are always very short on capital.' 'So giving this kind of a scheme and reimbursing the cost for one year will definitely reduce the cost of the employment at the same time, this will also focus on regional development,' he added. For businesses, the scheme also offers direct wage and hiring-related incentives. Raghunandan Saraf, Founder and CEO of Saraf Furniture, noted the dual benefits for employers and employees. 'The scheme is actually intended to give more opportunities to the employees who are struggling to find jobs or find employment. So this is going to be a good boost to the current employment market as well... It also helps the employees in retaining the employees. This is going to lower the attrition rate as well; it's also going to increase savings for the employees,' he added. Saraf further added, 'Employers are also set to receive some incentive based on this, a nominal amount. So that incentive is just to make sure that employers are also on board with the scheme... One larger benefit is that the attrition rate will be lower now. since the incentive is to be distributed after six months and then after 12 months. So that means the attrition rate will be lower and at the same time, employers will also receive some incentive.' Under the Scheme, while the first-time employees will get one month's wage up to Rs 15,000, the employers will be given incentives for a period of two years for generating additional employment. The ELI Scheme was announced in the Union Budget 2024-25 as part of the PM's package of five schemes to facilitate employment, skilling and other opportunities for 4.1 Crore youth with a total budget outlay of Rs 2 Lakh Crore. (ANI)
Time of India
06-06-2025
- Business
- Time of India
'It's no longer a cost thing': GCCs shift from support units to strategic value creators
Once viewed as peripheral back offices or outsourcing outposts, India's Global Capability Centres (GCCs) are undergoing an identity shift. Today, they are emerging as strategic nerve centres—driving product innovation, global go-to-market capabilities, and Artificial Intelligence (AI) breakthroughs across industries. Take the instance of Bosch Global Software Technologies, a global digital engineering company, where the journey of GCCs spans a 30-year transformation into a global AI-led business unit. Meanwhile, Rakuten, a global financial group based in Tokyo, suggests renaming GCCs as Global Value Centres (GVCs), a shift that indicates the growing strategic and innovation-led value these centres contribute beyond cost efficiency. In their increasing role as R&D powerhouses, GCCs are not just applying AI but leading innovations across healthcare, real estate, mobility, and hardware. At Bosch, GCCs are steering the company's generative (Gen) AI roadmap, with GenAI frameworks helping enhance code libraries. In a similar vein, at Jones Lang LaSalle Incorporated (JLL), the global real estate conglomerate is focusing its internal hackathons on agentic AI. Meanwhile, Qualcomm, a global chip manufacturing giant, designs AI-enabled chipsets for next-gen vehicles, even as Philips Innovation Campus leverages AI to reduce MRI scan time by 50%. These signals of transformation were discussed at the final round of Bosch Conversations roundtable titled 'GCCs as Engines of Strategic Innovation: Creating Global Centers of Excellence'. Held on May 22 at the Hilton Embassy Bengaluru, industry leaders came together to chart the evolution of India's GCCs from cost centres to engines of strategic value. Live Events Against the backdrop of a sector poised to reach USD 105 billion and employ over 2.8 million people by 2030 , as projected by Union Labour Secretary Sumita Dawra earlier this year, the discussion delved into how GCCs are now pivotal to global product innovation, AI-led transformation, and go-to-market acceleration. The speakers included Ramaprasad Subramaniam, Vice President & GCC Lead, Qualcomm; Arvind Vaishnav, Head of Philips Innovation Campus, Philips; Pawan Sachdeva, Managing Director - Digital and Health Services Platform, Carelon Global Solutions; Manish Mittal, Director, GBS Corporate Shared Services, Novozymes (a Novonesis company); Pratik Nath, Managing Director, Epsilon India; Ashokkumar Jayakumar, CIO, JLL; Subbu Swaminathan, Senior Vice President – Product & Engineering, Rakuten; Soumitra Saha, MD and Country Head, Lumen India; and, Ramesh Ramaswamy, Head - Transformation, Bosch Software and Digital Solutions. Driving the AI-led shift One of the clearest illustrations of this multi-decade journey came from Ramesh Ramaswamy, Head of Transformation at Bosch Software and Digital Solutions. Reflecting on Bosch's early entry into the GCC space, he said, ' 'We began our GCC journey long before the term even existed—over 25-27 years back,' he recalled. 'For us, a GCC is not only about delivering for the headquarters, it is also about being close to the end markets enabling us to deliver high-value, relevant outcomes to the parent organization.' Ramaswamy traced the evolution of Bosch's GCC footprint across India, Vietnam, Mexico, and Poland—driven not just by access to talent, but by proximity to customer ecosystems. He emphasized how Bosch GCCs have matured from delivery units into true innovation hubs—creating new products and even monetizing them independently. Moving up the value chain: From innovation to execution This theme of end-to-end innovation was echoed by Arvind Vaishnav, Head of Philips Innovation Campus, who reinforced that India is no longer just executing ideas but generating them, particularly in healthtech. He pointed to Philips' SmartSpeed solution as a breakthrough in AI-led clinical outcomes. Speaking about the interventions that could make Indian healthcare robust, from predictive diagnostics to faster scans, the speaker highlighted the need for a broader mindset shift: 'Everyone is identifying these real-world pain points and striving to move up the value chain. True value is created only when you're solving meaningful problems—not just building for the sake of it.' He added that it's no longer enough to just deliver hardware or standalone products. 'The real differentiation comes from combining robust software with innovative thinking to create solutions that truly improve patient experience and clinical outcomes. That's how India can lead—not just in innovation, but in execution that has a global impact.' Solving real-world problems at scale Throughout the conversation, a common refrain was the deep customer orientation and problem-solving mindset. Philips stressed co-creation with clinicians; JLL builds tools that help brokers make decisions 'in front of the client'; Rakuten developed India-born products now used across Asia. For Ashokkumar Jayakumar, CIO at JLL, India's GCCs have become indispensable to the firm's digital-first real estate strategy. The Bengaluru centre, now 1,000-strong, leads key products such as Azara and enables real-time decision tools for brokers and clients. 'We want to give the best tech tools to [our brokers]—so building CRM systems or any apps that they can use to show in front of the clients... we enable tools so our clients can make informed decisions.' Jayakumar underscored how sustainability imperatives are shaping product development from India. 'Each and all your companies have sustainability goals, so we help our clients with that... we come up with tools and tech to see how we can reduce and help our clients get their goals.' He also pointed to India's growing influence in ideation: 'We run hackathons... (the) majority of the participation comes from our GCC... This year, actually, we are running a hackathon on agentic AI… exciting times.' Pawan Sachdeva, Managing Director - Digital and Health Services Platform, Carelon Global Solutions, highlighted how GCCs are evolving beyond cost arbitrage to become strategic platforms delivering tangible value in healthcare innovation. That said, Sachdeva cautioned against technology obsession over consumer experience. He shared a real-life example from within Carelon Global Solutions to demonstrate this. 'It wasn't some rocket science or major tech breakthrough. It was something very simple—my team began systematically reviewing user feedback on the app stores. If a single, small issue was responsible for multiple negative reviews, we fixed it. Then we proactively responded to the users to let them know their feedback had been addressed. This led to overwhelmingly positive responses,' Sachdeva illustrated. India as the nerve centre: From innovation hubs to global deployment Pratik Nath, Managing Director of Epsilon India, seconded Sachdeva's opinion, reinforcing the view that India's GCCs have evolved far beyond cost centres to become core engines of AI and martech innovation. Nearly half of Epsilon's engineering talent is based in India, Nath noted, leading global initiatives in predictive modelling, personalised marketing at scale, and campaign automation using generative AI. He urged a shift from legacy maturity models to outcome-led global leadership from day one. 'What's fascinating is the sheer scale and continuity of model evolution. Just in the time we've been speaking, over two billion model updates have happened globally. And many aren't shiny GenAI models—they're older, embedded systems like risk and recommendation engines, some dating back to the '90s. Innovation isn't about replacing them, but layering new capabilities like GenAI on top of what already works.' 'GCCs are often seen primarily as tech hubs, but they're just as capable of delivering high-quality customer experiences—even from thousands of miles away from the headquarters,' stressed Soumitra Saha, MD and Country Head, Lumen India. From being a traditional telco, Lumen is transitioning into a digital-first, AI-powered company—with India at the forefront of this shift, proactively piloting GenAI initiatives. 'A key success factor for GCCs over the next decade will be their ability to drive innovation in products, services, and experiences directly from India. But to do this effectively, they must combine deep domain expertise with strong business understanding.' From Rakuten's observability tech launched in India and scaled to Southeast Asia, to Qualcomm's India-led chipset design for global devices, to Philips' India-developed FDA filings—the narrative is clear: India is not just a talent pool, it's a launchpad. Subbu Swaminathan of Rakuten India offered a compelling reframe: from Global Capability Centres to Global Value Centres (GVCs). Over the past decade, Rakuten's Bengaluru-based hub has evolved from a conventional outsourcing unit to a launchpad for in-house product innovation. 'Started as… (an) outsourcing centre, but now, leading the innovation from India to Japan and other markets.' Swaminathan cited an in-house observability solution built in India and now scaled to multiple clients across Southeast Asia. 'We saw a need... So we entered and built our own observability solution and piloted at scale… launched the business from India.' For Rakuten, the GCC model is now about strategic alignment and business contribution. 'It's no longer a cost thing. It's about: how can you strategically look at the parent organization, and how can you increase the business contribution from India?' Closing the loop, Ramaprasad Subramaniam, Vice President & GCC Lead at Qualcomm, reflected on how India has moved from the periphery to the core of Qualcomm's global chip design strategy. Over two decades, the India GCC has grown from a cost arbitrage base to a full-stack innovation engine powering next-gen chipsets across smartphones, IoT, computing, and automotive use cases. He highlighted Qualcomm India's role in designing solutions for leading domestic brands such as Mahindra and Tata, and underlined that India now contributes to ARM-based laptop alternatives and future-forward chip architectures. As GCCs scale their ambitions, they are also expanding geographically to tap into India's broader talent base. Vaishnav noted that at Philips, there is a growing importance of building Tier-II/III ecosystems to avoid 'concentration risks' and tap into untapped talent. Similarly, Subramaniam affirmed Qualcomm's commitment to capability building across India, reinforcing the idea that GCCs are investing in geographic resilience. Responding to a discussion on how organisations perceive and position their GCCs, Manish Mittal, Director of GBS Corporate Shared Services at Novozymes (now part of Novonesis), explained that at this global bio-solutions leader, the India centre is not treated as a separate, siloed support unit, but as a fully embedded strategic extension of the global organisation. He emphasised that location is irrelevant when capabilities are core and integrated into enterprise decision-making. 'We are very integrated. We don't call ourselves a GCC… The core is strategic. It's not like 'this is India'—it's just, this is it. We are another function.' For more such critical insights on the future of GCCs and how GCCs are generating new revenue streams, not just supporting existing ones, watch the conversation here. 'It's no longer a cost thing': GCCs shift from support units to strategic value creators | Discussion Watch the full conversation here Bosch Conversations is a global, by-invite flagship series that brings together thought leaders. Hosted by Bosch Software and Digital Solutions , it focuses on digital disruptions and leadership in the context of market needs and industry challenges. Economic Times WhatsApp channel )
Time of India
30-05-2025
- Business
- Time of India
EPFO likely to allow instant PF withdrawals via UPI and ATMs from June 2025
The Employees' Provident Fund Organisation (EPFO) is set to revolutionize the way millions of employees access their provident fund (PF) savings. Starting June 2025, EPF members will be able to instantly withdraw PF funds via Unified Payments Interface (UPI) and ATMs, according to DD News. This major step is being implemented with the support of the Ministry of Labour and Employment and has already received approval from the National Payments Corporation of India (NPCI). The new facility will also allow users to check their PF balance directly on UPI platforms and transfer funds to their bank accounts without delays. Instant PF withdrawals under EPFO 3.0 Currently, PF withdrawals involve submitting online claims followed by a waiting period for approval from EPFO field offices. This process can take several days or even weeks. However, the upcoming integration with UPI and ATMs is expected to make settlements instantaneous. Members will be allowed to withdraw up to ₹1 lakh instantly—especially helpful in emergencies. 'EPFO has made significant improvements in its digital infrastructure by integrating over 120 databases,' said Sumita Dawra, Secretary at the Ministry of Labour and Employment. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Perdagangkan CFD Emas dengan Broker Tepercaya IC Markets Mendaftar Undo 'These efforts have reduced claim processing time to just three days, with 95 per cent of claims now being processed automatically. Further upgrades are also in progress to make the system even more efficient.' Expanded withdrawal purposes Currently, the EPF scheme allows withdrawals for medical emergencies, housing, education, and marriage, but members must meet specific eligibility criteria and provide proper documentation. With the upcoming changes, the scope of permitted withdrawal reasons will be expanded, giving employees greater financial flexibility for key life events. In another significant development, pensioners under the Employees' Pension Scheme (EPS) of 1995 will be able to access their pensions from any bank branch across India starting January 1, 2025. This means retirees will no longer be restricted to specific banks or branches. Even if a pensioner relocates or changes banks, pension disbursal will continue seamlessly through the Centralised Pension Processing System (CPPS), eliminating the need to transfer Pension Payment Orders (PPO) between offices. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
30-05-2025
- Business
- Time of India
EPF withdrawals via ATM, instant UPI as EPFO 3.0 likely to roll out in June 2025
Tired of too many ads? Remove Ads Withdrawing EPF funds instantly under EPFO 3.0 Tired of too many ads? Remove Ads Pension changes for EPFO from January 1, 2025 The Employees' Provident Fund Organisation (EPFO) plans to change how millions of employees withdraw their provident fund (PF) funds. It is likely that from June 2025, EPF members will be able to withdraw PF funds instantaneously via UPI and ATMs, eliminating the lengthy and methods of the past, according to the DD initiative is being implemented with the support of the Ministry of Labour and Employment and has received approval from the National Payments Corporation of India (NPCI). EPF members will also be able to check their PF balance directly on UPI platforms and transfer funds to their preferred bank accounts without read: EPF changes in 2025: New form to transfer EPF account, instant UAN activation, other announcements made by EPFO that you need to know Currently, Withdrawing PF funds involves submitting online claims and waiting for approvals from field offices of EPFO. This can take several days or even weeks. However, with the upcoming UPI integration and withdrawal facility via ATM, EPF withdrawal settlement will become instant and are the days of submitting online claims and waiting days or even weeks for PF withdrawals. With the new UPI integration, EPFO members can withdraw up to Rs 1 lakh instantly, making funds readily available during emergencies. According to Sumita Dawra, Secretary at the Ministry of Labour and Employment, this update allows employees to check their PF balance directly on UPI platforms and transfer funds to their bank accounts without delays, as per DD reasons for PF WithdrawalsCurrently, EPF scheme allows withdrawals for medical emergencies, Housing (e.g., home purchases or renovations), Education (e.g., funding higher studies), Marriage (e.g., wedding expenses). However, to make the EPF withdrawal, an EPF member is required to fulfill certain criteria. Once the specific conditions are met, KYC and other documents are in order, only then EPFO successfully settles the proposal to expand the EPF withdrawal scope ensures that employees can tap into their PF savings for critical life events, making the system more responsive to their needs. This step aims to give more financial flexibility to employees. 'EPFO has made significant improvements in its digital infrastructure by integrating over 120 databases,' Dawra said.'These efforts have reduced claim processing time to just three days, with 95 per cent of claims now being processed automatically. Further upgrades are also in progress to make the system even more efficient,' she covered by the Employees' Pension Scheme (EPS) of 1995 will be able to access their pension from any bank branch in India as of January 1, 2025. This means that retirees can obtain their benefits from any bank or branch in even in the event that a pensioner relocates or switches banks or branches, the CPPS will guarantee pension delivery across India without requiring the transfer of Pension Payment Orders (PPO) from one office to another.
