The Confederation of Indian Industry (CII) has called for a comprehensive National Employment Policy, labour code implementation, and increased female workforce participation in the upcoming Union Budget 2025-26.
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The Confederation of Indian Industry (CII) has called for a series of measures to be included in the upcoming Union Budget for 2025-26, urging the government to prioritise the development of an integrated National Employment Policy, stronger support for employment generation, and the full implementation of labour codes. Additionally, the industry body stressed the importance of enhancing the participation of women in the workforce, among other recommendations.
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The Union Budget for the fiscal year 2025-26 is scheduled to be presented on February 1, 2025. CII, in its comprehensive set of suggestions, highlighted the need for continued efforts to improve employment generation. The organisation noted that while the 2025 Budget had already introduced schemes like the Employment Linked Incentive Scheme to boost job creation, further initiatives should be considered to accelerate employment growth.
Chandrajit Banerjee, Director General of CII, pointed out that India stands at a pivotal moment where its demographic dividend offers a unique opportunity for economic growth and social transformation. "Employment generation is critical to this journey," he said. Banerjee further emphasised the need to enhance productivity, suggesting that India's Incremental Capital Output Ratio (ICOR) needs to be reduced. He proposed the formation of an expert committee to examine this issue in greater detail and provide recommendations.
A key proposal from CII is the creation of an integrated National Employment Policy, which would encompass various employment-generation schemes currently under consideration by different ministries and states. The policy could also build on the existing National Career Service (NCS), integrating data from various platforms into one unified portal.
In addition, CII has advocated for the establishment of a Universal Labour Information Management System (ULIMS), which would provide valuable information on employment opportunities, job classifications, skills demand, and available training opportunities.
The industry body also suggested introducing a new provision in lieu of Section 80JJAA, which would encourage new employment by offering deductions on gross income. This initiative could be available to taxpayers involved in business or profession, with specific conditions around the recruitment of new employees.
CII has also proposed targeted support for employment-intensive sectors such as construction, textiles, tourism, and low-skilled manufacturing, with an emphasis on boosting exports from these sectors. It recommended aligning tariff structures and support programs like the Production/Employment Linked Schemes and Free Trade Agreements (FTAs) to facilitate this.
(With inputs from ANI)
To strengthen rural employment, CII suggested launching an internship program for college-educated youth in government offices in rural areas, providing much-needed support for the effective implementation of various government initiatives.
Additionally, the industry body has called for measures to boost female workforce participation, which currently remains low. CII proposed initiatives like constructing dormitories using CSR funds, formalising the care economy, and establishing government-supported creches in industrial clusters to improve the working conditions for women.
CII also recommended the rolling out of labour codes and extending social security coverage to gig and platform workers, helping to further strengthen the employment landscape. Furthermore, the organisation suggested creating an International Mobility Authority under the Ministry of External Affairs to facilitate Indian youth in accessing overseas employment opportunities. This authority could collaborate with the Ministry of Skill Development and Entrepreneurship to develop skill programs aligned with global demands, including technical, cultural, and foreign language skills.
As per ANI, these recommendations reflect CII's vision to leverage India’s demographic advantage and transform it into a robust, employment-generating economy.
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