India’s Shram Shakti Niti 2025 Labour Policy Overview

India’s labour sector faces deep challenges in 2025. Millions endure forced and informal labour without legal protections. The government introduced the Shram Shakti Niti 2025 policy aiming to modernise social security and workers’ rights. The policy combines digital tools with traditional values but raises concerns about implementation and inclusivity.

Context of Forced and Informal Labour

India has over 11 million people in modern slavery, the highest worldwide. Many workers, especially women in seafood, steel, and textile sectors, face exploitation. They work long hours for low wages without contracts or benefits. Middlemen and contractors often deny them legal protections. This reflects the fragility of India’s labour laws and enforcement.

Key Features of Shram Shakti Niti 2025

The policy proposes a Universal Social Security Account merging multiple schemes like Employees’ Provident Fund, Employees’ State Insurance, and e-SHRAM. It aims to provide lifelong health, pension, maternity, accident, and life insurance benefits. Digital IDs will link workers to services. The policy draws on Article 41 of the Constitution, promising rights to work and social assistance.

Challenges in Implementation

Digital reliance risks excluding women, elderly, and low-literate workers due to only 38% household literacy. There is no mandatory employer contribution or state funding guarantees. Union protections and collective bargaining are weak. The policy lacks clear penalties for violations. Informal workers and gig economy employees remain vulnerable to wage theft and poor working conditions.

Occupational Safety and Gender Concerns

The policy commits to enforcing the 2020 Occupational Safety and Health Code with gender-sensitive standards. It targets near-zero fatalities by 2047. However, inspector shortages and lack of penalties make this goal doubtful. Women’s care roles and maternity relief are recognised but insufficiently supported, especially for informal workers.

Role of Artificial Intelligence and Skill Development

AI-powered National Career Service plans to match jobs and skills, especially in smaller cities. It aims to reduce graduate-job mismatches. However, AI bias risks discrimination based on caste and gender. Gig workers’ wage minima and transition benefits remain unclear. Ethics audits and union involvement are needed to ensure fairness.

Gender Equity and Social Inclusion Goals

The policy targets raising female labour participation from 33.7% to 35% by 2030. Measures include affordable childcare, flexible work, equal pay, and apprenticeships. Yet, without quotas or stronger maternity support, progress may be limited. Dalit women and youth face unique challenges, requiring union-led audits and better data collection.

Green Technology and Just Transitions

Shram Shakti Niti promotes AI-enhanced safety and reskilling for coal and other workers. It aligns with Sustainable Development Goal 13 on climate action. However, just transitions lack income support and union participation. Rural workers risk marginalisation as green jobs concentrate in urban areas. Tripartite funding and OECD safeguards are essential to prevent exploitation.

Data Privacy and Governance Concerns

The policy links digital initiatives with education and employment governance. Weak enforcement of the Digital Personal Data Protection Act could lead to surveillance and threaten freedoms under Article 19. Transparency and grievance redressal mechanisms are critical but currently inadequate.

Need for Institutional Support and Accountability

Without concrete funding, offline access, and strong enforcement, the policy risks becoming symbolic. Tripartite enforcement involving government, employers, and unions is necessary. Pilots and rights audits should ensure accountability. The true test will be restoring dignity, rights, and justice for India’s vast informal workforce.

Questions for UPSC:

1. Taking example of India’s informal labour sector, discuss the challenges and solutions for universal social security in developing countries.
2. Examine the role of Artificial Intelligence in labour markets. How can AI be regulated to prevent caste and gender discrimination in employment?
3. Analyse the impact of occupational safety laws on informal workers. Discuss in the light of labour rights and gender equity in India.
4. Critically discuss the concept of just transitions in climate policy. How can it be implemented to protect vulnerable workers in fossil fuel industries?

Answer Hints:

1. Taking example of India’s informal labour sector, discuss the challenges and solutions for universal social security in developing countries.

1. High informal employment (~90%) lacks contracts, benefits, and legal protections.
2. Digital ID and social security schemes risk excluding low-literacy, women, elderly workers.
3. Absence of mandatory employer contributions and weak state funding threaten scheme sustainability.
4. Middlemen and contractor-based hiring cause wage theft and deny benefits.
5. Tripartite enforcement (government, employers, unions) and offline access needed for inclusion.
6. Solutions – universal portable accounts, rights audits, grievance redressal, and strong regulatory oversight.

2. Examine the role of Artificial Intelligence in labour markets. How can AI be regulated to prevent caste and gender discrimination in employment?

1. AI used for job matching, credential checks, and skill alignment in emerging labour markets.
2. Risks of AI bias leading to caste- and gender-based discrimination violating constitutional equality.
3. Need for ethics audits, transparency, and union involvement in AI algorithm design and deployment.
4. Mandatory safeguards against bias and discrimination embedded in AI systems.
5. Regular monitoring and grievance redressal mechanisms for affected workers.
6. Inclusive digital literacy and offline alternatives to avoid exclusion of marginalized groups.

3. Analyse the impact of occupational safety laws on informal workers. Discuss in the light of labour rights and gender equity in India.

1. Occupational Safety, Health and Working Conditions Code (2020) aims to improve workplace safety.
2. Informal workers often excluded due to inspector shortages, weak enforcement, and lack of penalties.
3. Gender-sensitive standards acknowledge women’s care roles and maternity relief but lack sufficient support.
4. Unsafe conditions lead to health hazards, fatalities, and exploitation, violating labour rights.
5. Effective enforcement requires increased inspection, union participation, and gender-responsive policies.
6. Improved data collection and targeted protections for vulnerable groups like women and informal workers essential.

4. Critically discuss the concept of just transitions in climate policy. How can it be implemented to protect vulnerable workers in fossil fuel industries?

1. Just transitions aim to shift to green economy while safeguarding livelihoods of fossil fuel workers.
2. Policy promotes AI-enhanced safety and reskilling but lacks income support and union involvement.
3. Rural and informal workers risk marginalisation as green jobs concentrate in urban areas.
4. Tripartite funding and OECD safeguards necessary to prevent exploitation and ensure fairness.
5. Implementation needs inclusive planning, social protection, and participation of affected workers/unions.
6. Aligns with Sustainable Development Goal 13 and labour rights (ILO Conventions) for sustainable livelihoods.