“Several initiatives have been undertaken to spur employment generation in the country. Employment-linked incentives can be instrumental in encouraging micro, small and medium enterprises and developing sectors that have the potential to create a large number of jobs,” said R Mukundan, chairman of the CII National Committee on Industrial Relations.
He said the government needs to build on its initiatives with additional incentives.
Also read: Govt’s formal job scheme may get extension
Earlier this month, the government announced that PLIs had garnered investment of Rs 1.03 lakh crore, which led to creation of about 678,000 jobs till November 2023. Experts said besides focusing on PLI, there is a need for tax breaks or subsidies for small and medium-sized enterprises (SMEs) for job creation.”Targeted incentives such as tax breaks or subsidies for SMEs that hire workers from marginalised communities can address social inequality while simultaneously boosting job creation across sectors,” said Suchita Dutta, executive director, Indian Staffing Federation.She said there is also a need to provide tax breaks to companies, which would encourage the formalisation of the workforce, and that these incentives need to be offered to both employers and employees.Also Read: Budget 2024 survey- India’s job story has a major missing part
The ministries of finance, skill development and labour need to align goals to get the right skills to people which can help generate employment, said Dutta.
Mukundan, who is also the managing director of Tata Chemicals, also said the government should align its skilling initiatives with the needs of the private sector.
More GIFTs
Experts also indicated that there is a need for more special economic zones (SEZs) like Gujarat International Finance Tec-City (GIFT) and lowering import duties on certain items which can also help labour-intensive sectors.
“Our analysis shows that the Shenzhen Industrial Region in China, spread over 300 sq km, is about the same size as the combined area of all Indian special economic zones,” said Rahul Ahluwalia, co-founder, Foundation for Economic Development, a think tank.
