Udyamee, Ahmedabad:
As India prepares for the Union Budget 2025, the Confederation of Indian Industry (CII) has outlined a comprehensive strategy aimed at enhancing employment opportunities across the nation. CII’s recommendations focus on policy integration, sectoral support, and workforce inclusivity.
Chandrajit Banerjee, Director General of CII, emphasized the importance of productivity alongside employment. He highlighted the need to reduce India’s Incremental Capital Output Ratio (ICOR) from its current level of 4.1, suggesting that the Union Budget could establish an expert committee to explore this in detail and recommend actionable measures.
Support for Labor-Intensive Sectors
To stimulate job creation, CII suggests targeted policy support for labor-intensive industries. By fostering growth in these sectors, the government can facilitate large-scale employment opportunities, particularly benefiting semi-skilled and unskilled workers.
Implementation of Labor Codes
The swift enactment of labor codes is deemed essential by CII to modernize labor laws and enhance worker welfare. This move is anticipated to create a more conducive environment for both employers and employees, thereby promoting job growth.
Integrated National Employment Policy
CII advocates for the formulation of a cohesive National Employment Policy that consolidates existing employment-generating initiatives from various ministries and states. This unified approach is expected to streamline efforts and maximize the impact of employment programs nationwide.
Increasing Female Workforce Participation
Addressing the low participation of women in the workforce, CII recommends initiatives such as constructing dormitories using Corporate Social Responsibility (CSR) funds, formalizing sectors like the care economy, and establishing government-supported crèches in industrial clusters. These measures aim to create a more inclusive and supportive work environment for women.
Internship Programs in Rural Government Offices
To bridge the gap between education and employment, CII proposes launching internship programs in rural government offices for college-educated youth. This initiative would provide short-term employment opportunities and enhance the implementation of various rural development programs.
Establishment of an International Mobility Authority
With global workforce shortages due to aging populations, CII suggests setting up an International Mobility Authority under the Ministry of External Affairs. This body would facilitate government-to-government collaborations, enabling Indian youth to access overseas employment opportunities. It would also work with the Ministry of Skill Development and Entrepreneurship to align skill development programs with global market needs, including cultural and language training.
Tax Incentives for Employment Generation
To encourage new employment, CII proposes introducing a new provision under income tax laws, replacing Section 80JJAA. This provision should continue as a Chapter VIA deduction from gross total income, available even if a taxpayer opts for the concessional tax regime. Such incentives are expected to motivate businesses to expand their workforce.
