To boost productivity and foster inclusive growth, the Confederation of Indian Industry (CII) has recommended that the government prioritise employment generation as a central theme in the Union Budget for FY26.
The CII has suggested the introduction of an integrated National Employment Policy (NEP), which would consolidate various employment-generating schemes currently being implemented by multiple ministries and states. The industry body has also called for targeted support to employment-intensive sectors such as construction, tourism and textiles, alongside the rollout of an internship program in rural government offices for college-educated youth.
“This initiative (internship) would create short-term employment opportunities in government offices while bridging the gap between education and professional skills,” said CII director general Chandrajit Banerjee.
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The CII has further urged the government to implement measures aimed at increasing women’s participation in the workforce, which remains low. “New initiatives, including the construction of dormitories using CSR funds, the formalisation of sectors like the care economy, and the establishment of government-supported creches in industrial clusters, could be undertaken to enhance female labor force participation,” Banerjee said.
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In addition, the organisation has recommended rolling out the four labour codes to modernize India’s labour framework. It also called for social security coverage for gig and platform workers to strengthen the employment ecosystem. FE had recently reported that a framework to provide social security for gig and platform workers is likely to be introduced early in the next fiscal year.
“India stands at a unique juncture where its demographic dividend presents a tremendous opportunity to propel economic growth and social transformation. Employment generation is a critical pillar in this journey,” said Banerjee. “India’s Incremental Capital Output Ratio (ICOR) needs to trend down from its present level of 4.1,”he added.
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