Ahead of the Union Budget 2022-23, industry body CII has pitched additional incentive rates in the Production Linked Incentive Schemes based on the number of jobs created.
The Confederation of Indian Industry (CII) has suggested incentivizing employment-intensive sectors such as leather and food processing to attract investments and create employment.
The budget should bring more PLI rates to boost job creation in the manufacturing
“With the imperative to support jobs and create new employment as the country recovers from the pandemic, CII suggests that the Budget add a job-creation component to the incentive.
CII also recommends that more employment-intensive sectors under the purview of the PLI schemes, which will significantly encourage investments in these sectors, ” CII Director General Chandrajit Banerjee said.
The incentives could The basis will be the proposed number of jobs created in the project, giving higher weightage to job creation in the PLI schemes, said CII.
Apart from the PLI scheme for employment, CII brought out a range of measures they could take up in the forthcoming Budget to help jobs gain traction as the pandemic impact is being cross income classes.
Provide relief to workers hit by the pandemic in the rural areas. The chamber recommended that the outlay for MGNREGA be enhanced considerably to support the rural poor, encouraging consumption growth.
It also suggested that Section 80JJAA of the Income Tax Act, which provides benefits for new workers with less than a threshold income of Rs 25,000 per month, should enhance the limit to encourage higher-skilled jobs creation.
job over, CII stated that “they should extend on-the-job training to all sectors with industry associations as third-party agencies for scaling up an apprenticeship.”
To reduce the compliance burden for MSMEs in hiring apprentices, they could set up a fund to build a real-time information system as a platform to bridge information gaps between workers looking for work and MSMEs looking for workers.
The industry body recommended that they can step up exports of labour-intensive goods with special economic zones, coastal zones, and industrial parks with WTO compatible benefits.