The Confederation of Indian Industry (CII) has put forth an ambitious seven-point agenda aimed at enhancing employment opportunities in India by 2025-26, recognizing the significant potential of the country’s demographic dividend. The proposal emphasizes the need to streamline and integrate various employment schemes through a robust National Employment Policy, managed via the National Career Service (NCS). This centralization is designed to improve coordination and provide actionable data insights regarding job opportunities and skills demand.
One of the cornerstone proposals from CII is the development of a Universal Labour Information Management System (ULIMS) under the NCS framework. This system is set to offer data-driven insights into the employment landscape, focusing on job opportunities, skills demand, and available training programs. With such a setup, policymakers and employers can make well-informed decisions, thus bridging the gap between job seekers and potential employers. CII believes that a well-structured data management system is essential for creating a dynamic and responsive employment ecosystem.
Incentivizing Hiring and Supporting Labor-Intensive Sectors
In a bid to stimulate job creation, CII has recommended the introduction of a new tax provision to replace section 80JJAA, which enables employers to claim deductions for new employees. The proposed provision would permit deductions for hiring new employees up to Rs 1 lakh per month for three years. This incentive is designed to encourage businesses to expand their workforce, thereby accelerating job creation across various sectors. By providing financial incentives, the proposal hopes to foster an environment conducive to employment growth.
Additionally, CII stresses the importance of offering focused support to labor-intensive sectors such as construction, textiles, and tourism. These sectors have high job creation potential but often face challenges related to tariff structures, Free Trade Agreements (FTAs), and employment-linked schemes. CII suggests synchronizing these elements to boost exports and job opportunities within these industries. By addressing these challenges comprehensively, the proposal aims to strengthen the overall employment landscape, particularly benefiting sectors with significant labor demands.
Empowering Rural Youth and Enhancing Global Employability
CII also emphasizes the need for specialized programs aimed at empowering rural youth. The agenda calls for the establishment of focused vocational training centers in rural areas to equip young individuals with market-relevant skills. By enhancing access to quality training, the initiative aims to improve employment outcomes for rural communities and reduce urban migration.
Furthermore, CII proposes measures to enhance the global employability of India’s workforce. This includes aligning skill development programs with international standards and fostering collaborations with global employers. By ensuring that Indian workers are equipped with globally recognized certifications and skills, the agenda aims to open up international job markets and attract foreign investment in India’s talent pool.