CII urges focus on employment policies, labour codes and women workforce in Union Budget 2025-26 - World News Network

New Delhi [India], January 5 (ANI): The Confederation of Indian Industry (CII) has called for a range of measures to be included in the upcoming Union Budget announcements, including an integrated National Employment Policy, policy support for employment generation, implementation of labour codes, and increased participation of women in the workforce, among other initiatives.
As is the convention, the budget for 2025-26 will be tabled on February 1, 2025.
The industry body added in its suggestions that the Union Budget for FY 2025 had outlined a series of initiatives to boost employment generation, including the Employment Linked Incentive Scheme, but the forthcoming budget could announce further measures to boost employment generation.
Sharing a comprehensive set of recommendations to harness India’s demographic dividend, Chandrajit Banerjee, Director General, CII, said, “India stands at a unique juncture where its demographic dividend presents a tremendous opportunity to propel economic growth and social transformation. Employment generation is a critical pillar in this journey. Coupled with higher employment, India also needs to ensure that productivity goes up. India’s Incremental Capital Output Ratio (ICOR) needs to trend down from its present level of 4.1. We need to establish metrics of measuring this. In fact, the Union Budget could set up an expert committee to study this in greater detail and recommend measures on the way forward.”
CII has proposed an integrated National Employment Policy, which could subsume under its ambit the slew of employment-generating schemes currently in works by various ministries/states.
In addition, the unified policy could also build on the single integrated employment portal, the National Career Service (NCS), wherein all the data can flow into this from various ministries and state portals, the industry body stated.
CII advocated for the development of a Universal Labour Information Management System (ULIMS) under NCS, adding that the move will help provide information about employment opportunities and projections, job classification, skills demand, and training opportunities aligned to the projections.
CII has proposed a new section in lieu of section 80JJAA to encourage new employment. The new provision should continue as Chapter VIA deduction from gross total income, which is available even if the taxpayer opts for the concessional tax regime, CII added.
It can be made available to any taxpayer who carries on business or profession and is liable to tax audit, it added.
It can be provided that employees who are recruited by the taxpayer as part of split/reconstruction or business reorganisation will not qualify for the deduction. The deduction can be granted for the first three years of new employment with reference to salary paid in the respective tax year but is subject to a ceiling of Rs. 1 lakh per month, CII added in the suggestions.
Giving emphasis on job creation, the industry body advocated for targeted support for employment-intensive sectors such as construction, tourism, textiles, and low-skilled manufacturing.
To boost exports from labour-intensive manufacturing sectors, which will lead to employment generation, tariff structures, support through programs like the Production/Employment Linked Schemes, and the Free Trade Agreements (FTAs) that India is entering need to be synced, CII stated.
CII stated that for the rural areas, the government could consider launching an internship program in government offices in rural areas for college-educated youth, adding that the program would help augment the available manpower resources for the effective implementation of various initiatives.
CII also emphasised the need to incentivise participation of women in the workforce, which is currently low. New initiatives, including the construction of dormitories using CSR funds, the formalisation of sectors like the care economy, and the establishment of government-supported creches in industrial clusters, could be taken to increase female labour force participation, it added.
The industry body advocated for gender-sensitive frameworks in skill development and employment policies that can empower women economically.
CII also demanded rolling out labour codes while ensuring social security coverage for gig and platform workers would further strengthen the employment landscape.
The industry body suggested that the government could consider setting up an International Mobility Authority under the Ministry of External Affairs.
This authority could facilitate government-to-government (G2G) collaborations for helping Indian youth tap overseas employment opportunities, it added.
The authority could also work with the Ministry of Skill Development and Entrepreneurship to help develop skill development programs aligned with global opportunities. In addition to technical skills, the programs should also include cultural training and foreign language skills, CII added in its Union Budget 2025-26 recommendations. (ANI)

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