Ahead of the Union Budget 2022-23, Indian industry has urged the government to offer incentives for job creation, including special exemptions, under the already announced Production Linked Incentive (PLI) schemes.
The plea assumes significance amid growing concerns about high unemployment levels in the country, even as a FICCI survey of manufacturing firms showed that 75% of firms reported a significant increase in business volume and orders in the quarter. Haven’t planned on hiring despite the increase. By December 2021 quarter.
The Director of the Board of Industry said, “With the country recovering from the pandemic as well as the imperative to support jobs and create new jobs, the Confederation of Indian Industry (CII) suggests that the budget for PLI incentives for 13 sectors Adds a job creation component.” General Chandrajit Banerjee said.
CII has also argued for increasing the outlay on MGNREGS to help rural unemployed workers affected by the COVID-19 pandemic and spur consumption. It has also increased the ₹25,000 monthly wage limit under the Income Tax Act to pass on benefits to firms hiring new employees.
Separately, FICCI’s latest quarterly survey of the manufacturing sector showed that the average capacity utilization in the third quarter of 2021-22 was in the range of 65%-70%, but with three out of four firms hiring. The outlook remained ‘weak’. Want to hire in the current quarter.
“Cost of doing business remains a cause for concern (with) higher raw material prices, cost of finance, demand uncertainty, working capital crunch and logistics costs, combined with lower domestic and global demand due to supply chain disruptions The survey found that cheap imports in large quantities and high electricity tariffs are further hampering business expansion plans.