CII's 7-Point Plan to Create Jobs in India's Budget 2025

What did CII ask for in Budget 2025?

Ahead of Budget 2025, India's Union Budget for 2025-26, the Confederation of Indian Industry (CII) put forward a seven-point agenda for employment generation in early January 2025. Think of it as a roadmap to revving up the employment engine of the Indian economy.

The timing matters. CII pointed out that India's median age is 29 and that its working-age population is expected to grow by 133 million by 2050. That is a lot of people who will need jobs. Here is what each of the seven points asked for.

1. One national employment policy

The first point is an Integrated National Employment Policy. CII wants the many job schemes run by different ministries and states brought under one umbrella, built on the National Career Service (NCS) portal.

It also proposed a Universal Labour Information Management System (ULIMS) under the NCS, plus an expert committee to study the Incremental Capital Output Ratio (ICOR). Think of it like matchmaking: one system that shows where the jobs are and what skills they need.

2. A tax break for new hires

CII asked for a new income tax provision in place of Section 80JJAA to encourage new hiring. It would cover the first three years of new employment, capped at ₹100,000 per month per employee, and stay available even for taxpayers who choose the concessional tax regime.

Look at it this way: companies want to make a profit, and lowering the tax cost of each new worker frees up money that can go into hiring and expanding their workforce.

3. Support for job-heavy sectors

The third point targets employment-intensive sectors such as construction, tourism, textiles and low-skilled manufacturing. CII suggested streamlined tariffs, stronger production-linked and employment-linked incentives, and free trade agreements that are better aligned with these industries.

4. Rural internships for graduates

CII proposed an internship programme in government offices in rural areas for college-educated youth. It would give young people short-term jobs and help close the gap between what they learn in college and the skills employers want.

The interns would also help deliver rural development programmes on the ground, so the scheme works for both the graduates and the villages they serve.

5. More women in the workforce

To raise women's participation in the workforce, CII suggested dormitories for women workers funded through CSR, formalising the care economy, government-supported creches in industrial clusters, and gender-sensitive skill and employment frameworks.

6. Labour codes and gig worker security

CII asked the government to prioritise rolling out the labour codes and to extend social security coverage to gig and platform workers.

7. An authority for jobs abroad

The last point is an International Mobility Authority under the Ministry of External Affairs. It would pursue government-to-government job arrangements overseas, run skill programmes with the Ministry of Skill Development and Entrepreneurship, and offer cultural and language training.

What did Budget 2025-26 actually include for jobs?

When Finance Minister Nirmala Sitharaman presented the Budget on February 1, 2025, her speech promised identity cards, e-Shram registration and healthcare under PM Jan Arogya Yojana for gig workers of online platforms, a step expected to help nearly 10 million gig workers. It also promised measures for labour-intensive sectors, including a focus product scheme for footwear and leather expected to facilitate employment for 2.2 million people, and a new National Manufacturing Mission.

Putting It All Together

So, what's the takeaway here? CII's seven-point agenda covered policy, tax, job-heavy sectors, rural youth, women, social security and jobs abroad. The Budget picked up some of the same themes, most clearly gig worker security and labour-intensive sectors. For job seekers, these are the areas to watch for new openings and support.

For more insights, be sure to subscribe to Metaintro here.