Exploited Workers and the Gaps in India’s Labour Policy: Analysing the Draft Shram Shakti Niti 2025

Context

1. The Central Government has introduced the draft Shram Shakti Niti 2025, a proposed national labour policy aimed at making India’s workforce “future-ready.”
2. It seeks to unify social security, improve safety, and promote gender equity and technology integration.
3. However, the policy has drawn criticism for being disconnected from the lived realities of India’s labour force, where 11 million people experience modern slavery, and over 90% of workers are informally employed without contracts or social benefits.

What is the Shram Shakti Niti 2025?

1. The Shram Shakti Niti 2025 is a proposed labour policy that aspires to modernise India’s employment framework while embedding it in “ancient Indian ethos.”
2. It brings together multiple schemes and labour codes under one umbrella to create a universal social protection system for all categories of workers – formal, informal, and gig.
3. It is designed to align with constitutional directives such as Article 41 (right to work and assistance), Article 42 (just and humane work conditions), and Article 15 (prohibition of discrimination).
4. However, while the policy emphasises digital integration, skill alignment, and inclusivity, its lack of clear financial support, institutional safeguards, and union involvement makes it more aspirational than actionable.

Why Was the Policy Introduced?

1. To unify fragmented labour schemes into a single, portable social security system.
2. To respond to the rise of gig and platform-based work, ensuring benefits for new-age workers.
3. To balance employer flexibility and worker welfare amid rapid industrial and technological change.
4. To boost female labour participation and align India’s workforce with Vision 2047 and Sustainable Development Goals (SDGs).

However, the underlying motive also appears to be ease for employers and simplification of compliance, which raises questions about the balance between efficiency and worker rights.

How the Policy Works (Key Features and Mechanisms)?

1. Universal Social Security Account
   1. Proposes a portable digital account combining existing schemes such as EPFO, ESIC, PM-JAY, e-SHRAM, and State welfare boards.
   2. Aims to offer lifelong coverage for health, pension, accident, maternity, and insurance benefits.
   3. But no clear funding source or employer contribution is mentioned, risking weak implementation.
   4. Heavy reliance on digital IDs may exclude women, elderly, and low-literate workers, given low household digital literacy (38%).
2. Occupational Safety and Health
   2020. Promises strict enforcement of the Occupational Safety, Health and Working Conditions Code, 2020.
   2021. Aims for “near-zero fatalities by 2047” through audits and gender-sensitive standards.
   2022. However, lack of penalties, inadequate inspectors, and digital dependence make this goal unrealistic.
3. AI-driven Employment Facilitation
   1. Plans to make the Ministry of Labour and Employment an “employment facilitator” using AI-driven National Career Service (NCS) for job matching and skill mapping.
   2. Intends to merge with Skill India to reduce graduate-employment mismatch (91.75%).
   3. But without bias safeguards, AI systems risk reinforcing caste and gender discrimination.
4. Gender and Inclusion Goals
   1. Targets 35% female labour force participation by 2030 through childcare, flexible work, equal pay, and apprenticeships.
   2. However, the absence of quotas, penalties, or maternity support for informal workers limits the likelihood of achieving this goal.
5. Green-Tech and Just Transition
   1. Supports reskilling for coal and industrial workers to promote sustainable, green jobs, aligning with SDG-13 (Climate Action).
   2. Yet, without income support or union involvement, these transitions may deepen inequality and job insecurity.
6. Governance and Digital Oversight
   1. Proposes LEPEI (Labour and Employment Policy Evaluation Index) dashboards for policy monitoring.
   2. Links labour data with Digital India and NEP 2020 for skill and education integration.
   3. However, weak enforcement of Digital Personal Data Protection Act, 2023 risks worker surveillance and privacy violations.

Challenges and Way Forward

Conclusion

The Shram Shakti Niti 2025 reflects India’s attempt to create a unified, future-ready labour ecosystem. However, without concrete financial mechanisms, offline accessibility, union safeguards, and ethical oversight, the policy risks becoming more symbolic than transformative. For India’s 500 million-strong workforce, especially those in informal and gig sectors, the real measure of success will lie not in digital dashboards, but in the restoration of dignity, rights, and justice – ensuring that development is not achieved at the cost of human welfare.