Budget: CII suggests seven-point agenda for employment generation – Newz9

NEW DELHI: The upcoming annual finances for FY26 might announce additional measures to spice up employment generation, CII mentioned on Sunday, emphasizing that job creation at a mass scale is necessary to interact the younger inhabitants productively, and drive inclusive progress on the planet’s most populous nation. . The business physique has urged a seven-point agenda to harness India’s demographic dividend, together with an built-in nationwide employment coverageassist to labour-intensive sectors, and establishing a global mobility authority, amongst different focused measures.
With a median age of simply 29 years, India is a younger nation, and is about so as to add 133 million folks to its working-age inhabitants by 2050.
The authorities might contemplate launching an internship program in authorities places of work in rural areas for the school-educated youth, CII mentioned.
It argued that this initiative would create quick-time period employment alternatives in authorities places of work whereas bridging the hole between training {and professional} expertise.
The program would additionally assist increase the out there manpower assets for the efficient implementation of assorted rural packages and authorities initiatives.
CII has additionally proposed introducing a brand new provision below earnings tax rule in lieu of Section 80JJAA to encourage new employment. The new provision ought to proceed as Chapter VIA deduction from gross whole earnings, which is offered even when a taxpayer opts for concessional tax regime.
It has proposed an built-in nationwide employment coverage which might subsume below its ambit the slew of employment producing schemes presently in works by numerous ministries/states.
In addition, the unified coverage might additionally construct on the only built-in employment portal — National Career Service (NCS) — whereby all the information can movement into this from numerous ministries and state portals.
Highlighting that rising girls’s participation within the workforce, which is presently low, can additional increase the Indian financial system, CII mentioned, new initiatives together with the development of dormitories utilizing CSR funds, the formalization of sectors like care financial system, and establishing authorities-supported creches in industrial clusters might be taken to extend feminine labor drive participation.
Moreover, rolling out labor codes whereas making certain social safety protection to the gig and platform employees would additional strengthen the employment panorama.
Many elements of the world are dealing with workforce shortages on account of getting older populations, and India ought to leverage this chance. The authorities might contemplate establishing a global mobility authority below the Ministry of External Affairs. This authority might facilitate G2G collaborations for serving to Indian youth faucet the abroad employment alternatives.
The authority might additionally work with the Ministry of Skill Development and Entrepreneurship to assist develop talent improvement packages aligned with world alternatives. In addition to technical expertise, the packages must also embody cultural coaching, and overseas language expertise.
Chandrajit Banerjee, Director General, CII, mentioned, “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 way forward.”