Finance Minister Nirmala Sitharaman
The central government is continuously working to increase new job opportunities in the country. In the last budget, an internship scheme was brought in this direction. This time too, there is full hope that there will be an emphasis on new jobs in the budget. The Confederation of Indian Industry (CII) also believes that more measures to boost job creation may be announced in the upcoming annual budget for financial year 2025-26. The industry body stressed that large-scale employment generation is important to make the young population productive and promote inclusive growth in the world’s most populous country.
CII gave 7 suggestions to the government
The industry body has suggested a 7-point agenda to harness India’s demographic dividend, which includes an integrated national employment policy, support to labour-intensive sectors, and establishment of an international transport authority, among other targeted measures. The average age of India is only 29 years. India is a young country, and its working age population is expected to add 133 million people by 2050. CII said the government may consider starting internship programs in government offices in rural areas for college-educated youth. It argued that the initiative would create short-term employment opportunities in government offices while bridging the gap between education and vocational skills. The program will also help in enhancing the available manpower resources for effective implementation of various rural programs and government initiatives.
There is a need to change the income tax rules also
CII has also proposed to introduce a new provision in place of Section 80JJAA under the Income Tax Rules to promote 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 treatment. It has proposed an integrated National Employment Policy under which the employment generation schemes currently being implemented by various Ministries/States can be subsumed. CII Director General Chandrajit Banerjee said that along with increasing employment, India will also have to ensure that productivity increases.
Expert committee will have to be formed
India’s incremental capital output ratio (ICOR) needs to be brought down from its current level of 4.1. We need to set standards to measure it. In fact, an expert committee may be constituted in the Union Budget to study this in more detail and recommend further measures.
Latest Business News
