From Gig Worker Security To Female Workforce Participation: CII Suggests Seven-Point Agenda For Job Creation In FY26 Budget

The Confederation of Indian Industry (CII) has emphasised that the upcoming annual budget for FY26 could introduce measures to enhance employment generation and engage India’s growing young population productively. 

In its recommendations, CII outlined a comprehensive seven-point agenda to harness India’s demographic dividend while promoting inclusive growth.

1. Integrated National Employment Policy

CII proposed an integrated national employment policy to subsume the various employment-generation schemes currently operational under different ministries and states.

This unified policy could also build on the National Career Service (NCS) portal, creating a single employment data source for effective implementation and monitoring.

2. Internship Programme in Rural Government Offices

To bridge the gap between education and employability, CII suggested launching an internship programme for college-educated youth in government offices across rural areas.

This initiative would not only create short-term employment opportunities but also strengthen the implementation of rural government programmes.

3. Income Tax Incentives for Job Creation

CII recommended introducing a new provision under income tax rules in lieu of Section 80JJAA, to incentivise new employment generation.

The new provision should remain applicable under the concessional tax regime, enabling businesses to benefit while creating jobs.

4. Boosting Female Workforce Participation

CII called for targeted measures to increase women’s participation in the workforce.

These include constructing dormitories with CSR funds, formalising sectors like the care economy, and establishing government-supported crèches in industrial clusters.

5. Social Security for Gig Workers

Rolling out labour codes that extend social security coverage to gig and platform workers would be pivotal in fortifying the employment ecosystem.

6. International Mobility Authority

Highlighting global workforce shortages, CII proposed setting up an international mobility authority under the Ministry of External Affairs.

This authority would facilitate government-to-government collaborations and develop skill-building programmes, including foreign language and cultural training, to align Indian youth with global job markets.

7. Expert Committee on Productivity

To address India’s high Incremental Capital Output Ratio (ICOR) of 4.1, CII suggested forming an expert committee to study productivity metrics and recommend measures to improve efficiency.

Chandrajit Banerjee, Director General, CII, stated, "Coupled with higher employment, India also needs to ensure that productivity goes up. India's Incremental Capital Output Ratio (ICOR) needs to trend down from its present level of 4.1. We need to establish metrics of measuring this. In fact, the Union Budget could set up an expert committee to study this in greater detail and recommend measures on way forward."

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