The Eighth South and South-West Asia Subregional Forum on Sustainable Development Goals (SDGs) recently convened in New Delhi. Chaired by Ms. Sumita Dawra, Secretary of the Ministry of Labour and Employment, the session focused on SDG 8, which aims to promote decent work and economic growth. The forum brought into light India’s commitment to inclusive economic growth and improved employment opportunities.
India’s Economic Growth
India’s GDP growth is projected at 7% for FY 2024-25. This acceleration is attributed to effective poverty alleviation programmes, which have helped 250 million people escape multidimensional poverty. The government’s focus on sustainable growth and economic inclusion is evident in its strategic initiatives.
Social Protection Initiatives
India has doubled its social protection coverage, as reported by the International Labour Organization (ILO). The Targeted Public Distribution System provides food security to approximately 800 million people, making it one of the largest legally binding social assistance schemes globally. This model may serve as a benchmark for the South and South-West Asia region.
Employment Trends
Recent data reveals a decrease in the unemployment rate from 6% in 2017-18 to 3.2% in 2022-23. The employment rate has increased from 46.8% to 56% in the same period. The service sector, along with construction and manufacturing, has been very important in job creation, showcasing the dynamic nature of India’s labour market.
Formalisation of the Labour Market
India has seen the addition of over 64 million net subscribers to the Employees’ Provident Fund Organization (EPFO) in the past six years. The introduction of Employment Linked Insurance (ELI) schemes in the 2024-25 Budget reflects the government’s commitment to quality job creation. These schemes target first-time employees and encourage employer participation.
Leveraging Technology
Technological advancements are enhancing labour market efficiency. The National Career Service (NCS) portal connects job seekers with employers. In the unorganised sector, the e-Shram portal has registered over 300 million workers, offering a comprehensive solution for social security access and welfare benefits.
Labour Reforms
India’s labour law reforms consolidate 29 laws into four simplified codes. These reforms aim to improve working conditions and productivity while ensuring better social security for all workers, including those in the gig economy. The government is also collaborating internationally to facilitate skills recognition and promote decent work practices.
International Cooperation
India’s G20 presidency has encourageed partnerships with organisations like the ILO and OECD. These collaborations focus on mutual recognition of skills and qualifications, enhancing cross-border labour mobility. India’s efforts to promote decent work practices in global supply chains underline its commitment to sustainable development.
Questions for UPSC:
- Critically discuss the impact of India’s poverty alleviation programs on economic growth.
- Examine the role of technology in enhancing employment opportunities in India.
- Analyse the significance of labour law reforms in improving working conditions.
- Estimate the potential benefits of international cooperation on India’s labour market.
Answer Hints:
1. Critically discuss the impact of India’s poverty alleviation programs on economic growth.
- India’s poverty alleviation programs have successfully lifted approximately 250 million people out of multidimensional poverty, enhancing overall economic participation.
- Increased consumer spending from previously impoverished populations contributes to GDP growth, projected at 7% for FY 2024-25.
- Effective poverty alleviation measures improve human capital, leading to a more skilled workforce that drives productivity and innovation.
- Programs focus on inclusive growth, which encourages social stability and broadens the economic base, essential for sustained growth.
- International recognition and support for these programs position India as a model for poverty alleviation in South and South-West Asia.
2. Examine the role of technology in enhancing employment opportunities in India.
- Technological platforms like the National Career Service (NCS) connect job seekers with employers, bridging the demand-supply gap in the job market.
- The e-Shram portal facilitates social security access for over 300 million registered workers in the unorganized sector, enhancing job security.
- Digital tools promote skill development and training, preparing the workforce for emerging job opportunities in various sectors.
- Technology streamlines recruitment processes, making it easier for companies to find qualified candidates, thereby increasing employment rates.
- Innovative digital solutions are essential for adapting to the evolving nature of work, especially in gig and platform economies.
3. Analyse the significance of labour law reforms in improving working conditions.
- India’s consolidation of 29 labour laws into 4 simplified codes aims to create clarity and ease of compliance for employers and employees alike.
- These reforms enhance working conditions by ensuring better social security coverage, particularly for gig and platform workers.
- Streamlined regulations improve productivity and workplace safety, encouraging a healthier work environment.
- Labour reforms encourage formal employment, which is associated with greater job security and benefits compared to informal work.
- International collaboration on labour standards reinforces India’s commitment to decent work practices and enhances its global competitiveness.
4. Estimate the potential benefits of international cooperation on India’s labour market.
- International cooperation facilitates mutual recognition of skills and qualifications, enhancing cross-border labour mobility for Indian workers.
- Collaborations with organizations like ILO and OECD promote the adoption of best practices in labour standards and employment policies.
- Access to global markets and networks can lead to increased foreign investment, creating more job opportunities in India.
- Partnerships can enhance skill development programs, aligning them with international demands and improving employability.
- Strengthened international ties can improve India’s position in global supply chains, promoting sustainable economic growth and decent work practices.
