India's Social Protection and Labour Reforms
India's social protection coverage is anticipated to increase to 57% due to in-kind benefits from the Centre and states as highlighted in the upcoming International Labour Organisation's (ILO) World Social Protection Report.
Current Social Protection Coverage
- According to ILO's 2024-26 report, India's social protection coverage doubled to 48.8% from 24.4% in 2021.
Government Initiatives and Reforms
- Led by Labour and Employment Secretary Sumita Dawra, India has implemented several job creation and labour reforms.
- Budget emphasizes employment-led development in sectors such as agriculture, MSMEs, manufacturing, exports, and education.
- Labour reforms include:
- Simplified labour codes
- Universalisation of wages
- Social security for gig and platform workers
- Formalising employment
- Enhancing female participation
- Streamlining registrations and compliances
- Technological integration for transparency and grievance redressal
Positive Trends in Labour Market
- Unemployment rate dropped to 3.2% in 2023-24 from 6% in 2017-18.
- Labour force participation rate increased to 60.1% from 49.8%.
- Worker population ratio improved to 58.2% from 46.8%.
Gender Inclusion and Economic Growth
- India aims for 70% female workforce participation by 2047.
- Policies supporting gender inclusion include extended maternity leave, crèche facilities, and equal pay provisions.
- Increased female participation in sectors like IT, R&D, and engineering is a significant economic growth driver.
