The Bharatiya Janata Party (BJP) government on Monday said it has introduced a new measure to help ease the pressure on the already overworked workforce.
The Government of India’s decision to introduce the new Employment Guarantee Scheme (EGS) will allow people who have not been working for two years to start working in five-year increments, the Prime Minister’s Office said.
The new scheme will provide support for those who have been out of work for two-and-a-half years and are unemployed for five years or more.
Currently, there are more than 16 million unemployed people in India, the government said in a statement.
“EGS will help those who do not have sufficient means to support themselves and those who are struggling to support their families and are looking for a job,” the government added.
Under the scheme, eligible people would receive Rs 5,000 per month from the central government and Rs 3,500 per month per month for the state government, the statement said.
According to the government, eligible individuals can start work in six months.
The scheme is expected to reduce the unemployment rate from 11.2 percent to 5.5 percent by 2020 and it would also help ease unemployment among women, the ministry said.
India is ranked number one in terms of unemployment in the world, and the country has the third highest number of people unemployed.
Earlier this month, India introduced a national EGS scheme which offers up to Rs 50,000 monthly benefits to unemployed people.