The Confederation of Indian Industry (CII) has called on the government to prioritize employment creation in the Union Budget 2025-26. It emphasized the need to harness India’s demographic dividend to boost economic growth. The apex business chamber noted that the FY25 Budget had introduced initiatives like the Employment Linked Incentive Scheme to promote job creation. The upcoming Budget should include more measures to enhance employment opportunities, CII stated.
India, now the world’s most populous nation with 1.45 billion citizens, has a median age of 29 years. By 2050, the working-age population will increase by 133 million. CII highlighted that mass-scale employment generation is crucial to engage this young workforce productively and ensure inclusive growth.
National Employment Policy And Labour Systems
CII proposed an integrated National Employment Policy to consolidate employment schemes across Ministries. It suggested enhancing the National Career Service (NCS) portal by integrating it with the Universal Labour Information Management System (ULIMS). This system would offer data on job opportunities, skills demand, and training options aligned with market needs.
The business chamber also recommended a new section to replace section 80JJAA, encouraging new employment through tax deductions. The provision would apply to businesses undergoing tax audits and provide deductions for salaries of new employees for three years, with a cap of ₹1 lakh per month.
CII stressed the importance of increasing women’s workforce participation. Initiatives like dormitories funded through CSR, government-supported creches, and formalizing care economy jobs could address this issue. It also urged targeted support for employment-intensive sectors like construction, tourism, textiles, and manufacturing.
To enhance India’s global workforce, CII proposed setting up an International Mobility Authority under the Ministry of External Affairs. This body would facilitate overseas job opportunities and align skill development programs with global demands.
CII Director General Chandrajit Banerjee suggested forming an expert committee to improve productivity and lower India’s Incremental Capital Output Ratio (ICOR). He said the Union Budget could adopt measures to enhance efficiency alongside employment growth.
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