To engage the young population of the world's most populous nation, the Confederation of Indian Industry (CII) has called for certain measures to be included in the upcoming Union Budget 2025-26 on February 1, 2025. The industry body's seven-point agenda also suggested an integrated National Employment Policy, policy support for employment generation, implementation of labour codes, and increased participation of women in the workforce.
"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 Chandrajit Banerjee, Director General, CII.
He also outlined that India also needs to ensure that productivity goes up along with higher employment. Banerjee noted that India's Incremental Capital Output Ratio (ICOR) must trend down from its current level of 4.1.
CII recommended an integrated National Employment Policy that could encompass the slew of employment-generating schemes currently being implemented by various ministries and states.
The industry body further suggested a Universal Labour Information Management System (ULIMS) under the National Career Service (NCS) with the objective of providing information about employment opportunities and projections, job classification, skills demand, and training opportunities aligned to the projections.
Emphasising on job creation, CII also advocated for targeted support for employment-intensive sectors such as construction, tourism, textiles, and low-skilled manufacturing.
Furthermore, the industry body suggested the government to consider launching an internship program in government offices in rural areas for college-educated youth and highlighted the need to incentivise the participation of women in the workforce, which is currently low. It also advocated for a gender-sensitive framework in skill development and employment policies
India's Job Market in 2024
The country's job market registered a 9 per cent year-on-year spike in hiring activities last year, as per Naukri JobSpeak Index. The report highlighted that Artificial intelligence and machine learning (AI/ML) led the surge with 36 per cent rise in hiring.
In an interview with Outlook Business, TeamLease Services Limited chief executive officer Kartik Narayan, pointed out that the technological shift is inevitable as they offer significant efficiency improvements and cost savings. However, Narayan said, this trend can widen the existing skill gap if workers are not trained to adapt.
Hence, India must bridge this gap by investing in skill development and creating pathways for workers to transition into new roles that AI and automation cannot easily replace.
