"Reservation is not the objective but creation of avenues for employment generation," said Deveshwar, addressing his first news conference since taking charge as president of the leading industry lobby.

Deveshwar, chairman of ITC Hotels and member of the National Manufacturing Competitiveness Council set up by the prime minister, said: "We are embarking on a strategy for employment creation and not something that will create short-term problems."

During his one-year tenure as president, Deveshwar said among the many initiatives CII would embark on would be a major programme to set up 500 vocational training centres for graduates to develop skills for employment.

CII has already committed to contributing funds to upgrade 100 Industrial Training Institutes (ITIs).

Stressing the need to undertake projects like value chain development right from raw materials to finished products, Deveshwar said this would help to create employment through backward and forward linkages.

"The corporate sector is not employment generators by itself as it accounts for just a small share of the estimated 23 million jobs in the organised sector, with the public sector accounting for 60 percent," said Deveshwar.

"The corporate sector can help to create backward and forward linkages to create competition and help generate employment."

India with a young population - its median age in 2000 was less than 24 compared to 38 for Europe and 41 for Japan - "has the unique opportunity to complement what an ageing world needs most in terms of productive workers", he said.

CII's focus on skill development and promotion of entrepreneurship is expected to help young people entering the job market, he noted.