CII demands urgent employment reforms in budget 2025

India's Confederation of Indian Industry (CII) has made a strong call to the government regarding the upcoming Union Budget for 2025-26, set to be presented on February 1, 2025. They emphasized that the government should prioritize employment generation and implement essential labour reforms aimed at increasing women’s participation in the workforce. This request comes at a crucial time as India faces the challenge of effectively harnessing its demographic dividend. CII proposed an organized approach through a National Employment Policy that would unify various employment-centric initiatives across several ministries and state administrations. Chandrajit Banerjee, the Director General of CII, highlighted that India is at a pivotal moment where maximizing its demographic potential can lead to both substantial economic growth and social advancements. He recommended establishing an expert committee to examine productivity metrics, providing practical solutions to enhance the effectiveness of formulated employment plans. Furthermore, CII suggested the creation of a single integrated employment portal, enhancing the existing National Career Service program with a Universal Labour Information Management System, which would deliver critical insights about job opportunities, skills demand, and tailored training programs. In order to boost job creation, the Confederation proposed changes such as replacing Section 80JJAA to introduce a fresh incentive aimed at employing new workers, which would involve tax deductions for businesses hiring additional employees within a three-year timeframe. Targeted support for industries known for being labour-intensive like construction, textiles, and tourism was also suggested, linking it to the broader goal of stimulating employment generation. Regarding low participation rates of women in the workforce, the CII emphasized the necessity of gender-sensitive practices like government-supported childcare facilities within industrial hubs, as well as dormitory options funded through Corporate Social Responsibility (CSR). The organization advocated for formalizing care work as an essential component of the economy, which could lead to improved economic empowerment for women. In addition, CII's proposals included implementing comprehensive labour codes that would secure social protections for gig and platform workers. To facilitate overseas employment for youth, establishing an International Mobility Authority under the Ministry of External Affairs was suggested to create opportunities aligned with global market needs through collaboration with the Ministry of Skill Development. These initiatives underscore a collective demand for holistic strategies that not only aim to enhance employment rates but also propose structural reforms necessary for sustainable economic development and improved social welfare within the country.