Relevance: GS Paper II – Governance & Social Justice; GS Paper III – Indian Economy
Source: The Hindu analysis and Ministry of Labour & Employment (MoLE) draft Shram Shakti Niti 2025

Introduction

India’s labour market remains heavily informal — over 400 million workers lack written contracts, social protection, or workplace safety. Despite rapid digitalisation and economic reforms, exploitation, underpayment, and exclusion persist in both traditional and gig sectors.
In response, the government has unveiled the draft Shram Shakti Niti 2025, pitched as a “future-ready” labour policy for a rights-driven, technology-enabled workforce. However, its success will depend on whether it prioritises workers’ dignity over deregulation.

The Draft Shram Shakti Niti 2025: Key Provisions

Persistent Gaps in India’s Labour Landscape

While the policy envisions a “rights-driven” workforce, India’s labour realities tell another story:

• Informality and underpayment: Over 80% of workers earn daily wages without legal benefits. Many are denied ESI and PF through reclassification as “casual” labour.
  
• Falling labour share: Labour’s share in national income has declined from 30% in 1980s to about 16% in 2024, reflecting weakened bargaining power.
  
• Gender and gig inequality: Women, migrants, and platform workers face digital exclusion, unsafe conditions, and limited recourse under current laws.
  
• Weak enforcement: The dilution of inspector powers and shift to algorithmic compliance risk masking violations under the guise of efficiency.
  

Concerns and Risks

The Way Forward

To make Shram Shakti Niti a transformative policy, reforms must focus on dignity, fairness, and accountability, not just digitalisation:

• Enforceable Rights: Strengthen inspection mechanisms and legal penalties for exploitation.
  
• Inclusive Coverage: Extend all benefits to gig, migrant, and domestic workers, regardless of employer size.
  
• Bridging the Digital Divide: Ensure digital systems are accessible in regional languages and offline modes.
  
• Worker Empowerment: Promote unionisation and collective bargaining to balance employer dominance.
  
• Measurable Accountability: Monitor key outcomes—formal job creation, gender parity, and wage growth—under independent audits.
  

Key Takeaways

• The Shram Shakti Niti 2025 is an ambitious attempt to modernise India’s labour governance through technology and integration.
  
• However, without institutional safeguards, inclusion, and enforcement, digital dashboards will not translate into real change.
  
• Labour reform must restore protection, dignity, and fair participation—not merely automate compliance.
  

One-line wrap:
India’s labour policy must go beyond digital ambition — it must secure dignity, justice, and real protection for every worker.

UPSC Mains Question:
“Critically examine the Shram Shakti Niti 2025. How can India balance digital governance with worker protection in its evolving labour landscape?”