Budget 2023: PLI-like scheme to fix India's job woes? What CII president Sanjiv Bajaj thinks
Union Budget can focus on sops for sectors like tourism and logistics which have major employment generation potential especially in the wake of challenges they faced during pandemic.
January 18, 2023 / 04:20 PM IST
A scheme just on the lines of PLI in Budget 2023 for generating employment can help fix India's jobs problem.
An employment-linked incentive scheme in Budget 2023 just like the production-linked incentive (PLI) scheme for sectors that have more potential for creating jobs like logistics and tourism can help fix India's job problems.
"We think the PLI schemes have been very positive. Extending that and adding a few sectors towards what we suggest is an employment-linked incentive scheme for sectors like logistics and tourism which take a lot of people. This can provide a great fillip," CII President Sanjiv Bajaj said during a panel discussion hosted by CNBC-TV18 at WEF in Davos.
Bajaj batted for more infrastructure spending due to its multiplier effect on the economy and a major driver of rural and urban jobs and domestic consumption.
"Continued expansion in government infrastructure funding. This has played a very positive role in the last few years. It’s held our economy together, provided rural and urban jobs, created that much more domestic consumption," Bajaj said.
He sought relief for taxpayers at the bottom rung of the income ladder in the Union Budget. He said that inflation and job losses have hurt this segment the most.
"Cut in personal income tax at the lower segment will help these people stretch their rupee a little bit more."
The Centre had introduced the PLI scheme in 2020 in order to accelerate the push towards more domestic production under the aegis of Make in India. The scheme has worked well in attracting global manufacturers to shift base in India especially in the wake of troubles mounting for them in China.
Finance minister Nirmala Sitharaman will present the Union Budget for 2023-24 on February 1.
The Budget is likely to unveil measures that will help in enhancing the skillset of people. Most of the PLI schemes include new age sectors, which have a huge role to play in job creation.
Sectors like tourism and hospitality, which suffered badly during pandemic, are struggling to get back staff as they have shifted to other sectors. The travel industry has sought GST relief from the government in this year's Budget.
