The national business chamber CII said on Sunday that the Union Budget 2025–2026 should keep making job creation a top priority in order to capitalize on India’s demographic dividend and spur economic development.

It emphasized that the job Linked Incentive Scheme was one of many measures to increase job creation that were specified in the Union Budget for FY25. According to the CII statement, more steps to increase job creation may be announced in the next budget.

With 1.45 billion inhabitants, India is now the most populated nation in the world. India is also a youthful nation, with a median age of just 29 years. By 2050, the country’s working-age population is expected to grow by 133 million. According to CII, creating jobs on a large scale is crucial to fostering inclusive development and effectively involving this youthful demographic.

The business chamber has suggested an integrated national employment policy that could include all of the job-generating initiatives that are now being developed by different ministries.

Furthermore, all data from different ministries and state portals may flow into the National Career Service (NCS), a single integrated job portal that might be expanded upon by the unified strategy. Examining the evolution of the Universal Labour Information Management System (ULIMS) under NCS is crucial in this regard. This would include data on job categorization, skills demand, training opportunities that are in line with the estimates, and employment prospects and projections.

In order to promote new jobs, CII has suggested replacing section 80JJAA with a new section as part of their budget wish list. Even if the taxpayer chooses a concessional tax scheme, the new provision should be accessible as a Chapter VIA deduction from gross total income. Any taxpayer who does business or has a profession and is subject to a tax audit may be given access to it. According to the statement, the deduction is available for the first three years of a new job, based on the pay received during the relevant tax year, although it is limited to Rs 1 lakh per month.

Additionally, CII has looked for specific assistance for industries that provide a lot of jobs, such as low-skilled manufacturing, tourism, textiles, and construction. It also said that tariff structures and assistance via programs like the Production/Employment Linked Schemes and the Free Trade Agreements (FTAs) that India is joining must be coordinated in order to increase exports from labor-intensive industrial sectors, which would result in the creation of jobs.

The existing low rate of female labor participation might be raised to further strengthen the Indian economy. According to CII, new measures might be implemented to increase female labor force participation, such as the introduction of government-sponsored creches in industrial clusters, the formalization of industries like the care economy, and the building of dorms using CSR funding.

According to CII, the government should think about offering college-educated young people internships at government offices located in rural regions. This program would bridge the gap between professional skills and education while providing temporary work possibilities in government offices.

According to the statement, the job environment will be further strengthened by implementing labor laws while guaranteeing Social Security coverage to gig and platform workers.

Additionally, the government has been pushed by CII to think about establishing an International Mobility Authority under the Ministry of External Affairs. Government-to-government partnerships might be facilitated by this body to assist Indian youngsters in accessing job possibilities abroad. The Ministry of Skill Development and Entrepreneurship and the authority might collaborate to create skill development initiatives that are in line with international possibilities.

“India must make sure that productivity increases in tandem with increased employment,” said Chandrajit Banerjee, Director General of the CII. The Incremental Capital Output Ratio (ICOR) for India must decline from its current value of 4.1. An expert committee might be established by the Union Budget to look at the issue more thoroughly and suggest further steps.