Shram Shakti Niti 2025: India’s New Labour Vision or Digital Disguise?

Context

In 2024, India faced growing international scrutiny for its labour rights violations — from seafood factories on the eastern coast to steel and textile hubs across the country. Amidst this, the Government of India unveiled the draft Shram Shakti Niti 2025, claiming to be a “future-ready” labour policy rooted in ancient Indian ethos.

Yet, field reports and ILO findings paint a contrasting picture — of wage theft, digital exclusion, and informal exploitation, making this policy a test of India’s constitutional commitment to justice, equality, and dignity of labour.

⚖️ Background: India’s Labour Reality

Over 90% of India’s workforce remains informally employed, according to the International Labour Organization (ILO, 2024).
Nearly 11 million people are trapped in modern slavery, the highest globally.
Workers are often hired via contractors and classified as daily wagers, stripping them of Provident Fund (PF), Employees’ State Insurance (ESI), and maternity benefits.

This informalization of labour erodes Articles 14 (equality before law), 16 (equal opportunity), and 23 (prohibition of forced labour) of the Constitution.

🧩 Key Features of Shram Shakti Niti 2025

1. Universal Social Security Account

Introduces a portable “Universal Social Security Account” (USSA) integrating:
- EPFO (Provident Fund)
- ESIC (Health insurance)
- PM-JAY (Ayushman Bharat)
- e-SHRAM
- State Welfare Boards
Claims to ensure lifelong coverage — pension, maternity, accident, and life insurance — aligning with Article 41 (Right to work and public assistance).

🟠 Issue:

The draft lacks a funding model — no employer mandates or state contribution — replicating the weaknesses of e-SHRAM, where payouts remain minimal.

Digital-only implementation risks excluding women, the elderly, and low-literacy workers (only 38% household literacy), violating Article 15 (non-discrimination).

2. Occupational Safety and Health

Envisions enforcement of the Occupational Safety, Health and Working Conditions (OSHWC) Code, 2020.
Promises “near-zero fatalities by 2047” through:
- Risk audits
- Gender-sensitive standards
- AI-driven monitoring

🟠 Issue:

This goal seems unrealistic without:

Penalties for violators
Adequate labour inspectors (current shortage exceeds 50%)
Mental health and gender safeguards for gig and informal workers

It undermines Article 42 (humane conditions of work and maternity relief) and ILO Convention 155 (occupational safety).

3. AI-Driven Employment Facilitation

The policy redefines the Ministry of Labour and Employment (MoLE) as an employment facilitator, using:
- AI-based National Career Service (NCS) for job matching and skill alignment
- Integration with Skill India Mission to address 91.75% graduate-employment mismatch

🟠 Issue:

Lack of AI ethics safeguards may perpetuate caste and gender bias, violating Article 15.

No framework for algorithmic transparency or union oversight, risking digital exploitation.

4. Gig and Informal Workers

The policy largely ignores Wages Code 2019 enforcement for the 12 million gig workers.
“Flexibility” in gig work often masks wage theft and absence of benefits.

🟠 Solution Proposed by Experts:

Implement union-vetted AI systems and ethics audits to ensure fair digital labour governance.

5. Gender and Labour Force Participation

Sets a target of 35% female labour force participation by 2030 (current: 33.7%).
Promises:
- Affordable childcare
- Flexible work hours
- Equal pay and apprenticeships

🟠 Issue:

Without quotas, enforcement penalties, or strong maternity benefits, this goal risks tokenism.

Ignoring caste and mental health data also erases challenges faced by Dalit and Adivasi women.

6. Green-Tech and Just Transition

Promotes AI-enhanced safety and green job reskilling for coal and fossil sector workers.
Aligns with:
- Article 21 (Right to livelihood and life)
- SDG 13 (Climate Action)

🟠 Issue:

Lacks income support, union involvement, and tripartite funding.

Without these, “green jobs” risk turning into eco-exploitation, violating ILO Convention 29 (forced labour).

7. Governance and Data Protection

Proposes Labour and Employment Policy Evaluation Index (LEPEI) dashboards for convergence across ministries.
Seeks synergy with the National Education Policy and Digital India initiatives.

🟠 Issue:

Weak enforcement of the Digital Personal Data Protection Act (2023) could lead to worker surveillance, undermining Article 19 (freedom of expression and association).

⚠️ Areas of Concern

Concern	Constitutional / Legal Reference
Informalisation of work	Articles 14, 16, 23
Exclusion via digital-only model	Article 15
Lack of AI bias safeguards	Article 15
Weak occupational safety oversight	Article 42
Absence of union consultation	Article 19
Surveillance risk	Digital Personal Data Protection Act
No gig worker protections	Code on Wages, ILO Convention 190

🧠 UPSC Relevance

Prelims (2025) Focus Areas

Labour Codes 2020 (Wages, Social Security, OSHWC, Industrial Relations)
ILO Conventions 29, 87, 98, 155, 195
e-SHRAM and gig worker policies
Constitutional Articles: 14, 15, 19, 21, 23, 41, 42
Sustainable Development Goal 8: Decent Work and Economic Growth

Mains (GS Paper 2 & 3) Angles

"Shram Shakti Niti 2025 promises inclusivity and modernisation, yet risks deepening digital and class divides. Discuss the need for rights-based labour reform in India."

🌱 The Way Forward

Tripartite Model – State, employers, and unions must jointly oversee implementation.
Offline Accessibility – Ensure inclusion of low-literate and rural workers.
Ethics in AI – Union-vetted algorithms and transparency clauses.
Funding Clarity – Employer and government contributions for USSA.
Labour Inspection Reform – Recruit and train inspectors for real enforcement.
Gender and Caste Data Mandates – For evidence-based inclusion.
Mental Health and Safety Programs – Especially in gig and informal sectors.

🩵 Conclusion

The Shram Shakti Niti 2025 aspires to modernise India’s labour governance under the banner of Viksit Bharat.

Yet, digital dashboards and AI algorithms cannot substitute justice.

Without funding, offline access, and union safeguards, this policy risks becoming a symbolic exercise — promoting “employer ease” over worker rights.

India’s true progress lies not in automation, but in restoring dignity, equality, and justice to its 400 million informal workers.

UPSC Quick Recap Table

Policy Component	Promise	Key Issue
Universal Social Security Account	Integrated, portable welfare	No funding clarity
Occupational Safety	Zero fatalities by 2047	Inspector shortage
AI-driven job matching	Digital efficiency	Bias & exclusion risks
Female workforce target	35% by 2030	Weak enforcement
Green-tech vision	Sustainable jobs	No just transition
Governance & LEPEI	Data convergence	Privacy concerns

Suryavanshi IAS

Wednesday, November 12, 2025