Union Budget 2025-26: Big Advice! Focus on Job Creation and Economic Growth, Says CII

Union Budget 2025-26: The Confederation of Indian Industry (CII) has called for continued emphasis on job creation in the upcoming Union Budget 2025-26 to harness India's demographic dividend and stimulate economic growth. The chamber emphasised that the budget should build on previous initiatives designed to generate employment and explore new ways to expand job opportunities for the country’s growing workforce.

Prioritising Employment Generation for Economic Growth

India, with a population of 1.45 billion and a median age of 29 years, is the world’s most populous nation. By 2050, the country is expected to add 133 million people to its working-age population. The CII stressed the need for large-scale employment generation to engage this young workforce effectively. This would not only boost economic growth but also foster inclusive progress. Continuing to prioritise employment creation in the Union Budget 2025-26 will be key to addressing this challenge.

CII’s Proposal for a National Employment Policy

The CII proposed an integrated National Employment Policy that would streamline various existing employment schemes under one framework. This policy could encompass all the initiatives currently managed by different ministries, thereby enhancing efficiency. One of the key features of this proposal is the development of the Universal Labour Information Management System (ULIMS), which would be part of the National Career Service (NCS). ULIMS would provide valuable information on employment opportunities, skill demands, job classifications, and training programs aligned with market needs.

Targeted Support for Employment-Intensive Sectors

In its union budget 2025-26 wish list, the CII has asked for targeted support for sectors that rely heavily on employment, such as construction, tourism, textiles, and low-skilled manufacturing. To boost exports from these labour-intensive sectors, the business chamber highlighted the need for synchronised tariff structures and support through various schemes like the Production/Employment Linked Schemes and Free Trade Agreements (FTAs).

Additionally, increasing female participation in the workforce is another priority for the CII. Proposals include creating dormitories using CSR funds, formalising sectors like the care economy, and establishing government-supported creches in industrial clusters to support women workers.

Encouraging Innovation and Skill Development for Employment

CII also suggested that the government consider launching an internship program in rural areas for college-educated youth, helping them bridge the gap between education and professional skills while providing short-term employment opportunities in government offices.

Moreover, the chamber called for the implementation of Labour Codes to ensure social security for gig and platform workers, strengthening India’s employment landscape. An International Mobility Authority under the Ministry of External Affairs could further assist Indian youth in accessing overseas job opportunities, CII proposed. This authority could collaborate with the Ministry of Skill Development to align skill development programs with global employment trends.