Draft National Labour Policy: Shram Shakti Niti
The Ministry of Labour and Employment's draft policy aims to establish a fair, inclusive, and future-ready labour system, focusing on dignity, protection, and opportunity for all workers, including those in formal, informal, and gig sectors.
Ministry's Role as an Employment Facilitator
- Use of digital tools and AI to connect workers, employers, and training institutions.
- Recognition of structural shifts in the labour market due to digitisation, green transitions, and new employment forms.
- Expansion of the National Career Service (NCS) into a Digital Public Infrastructure for Employment to address information asymmetry.
AI's Impact on Labour Market
- The "South Asia Development Update" report by the World Bank outlines AI's reshaping of India's labour landscape.
- Fears of job losses from automation are prevalent, but AI offers productivity growth and inclusion challenges.
- Only 7% of jobs in South Asia are highly exposed to automation; 15% are AI-human complementary.
- AI-related jobs offer a 30% wage premium over other white-collar positions.
- Indian firms are shifting from business process outsourcing to knowledge process outsourcing.
Proposed Interventions
- Targeted skilling and reskilling programs, especially in semiurban and rural areas.
- Promotion of AI-enabled job matching, digital credentialing, and entrepreneurship support.
- CBSE plans to introduce AI in the school curriculum from Class III.
- Integration of AI and data science into undergraduate programs for an AI-ready workforce.
Challenges and Measures
- Universal and portable social security proposed, alongside simplified compliance for businesses.
- Support for green and tech-led transitions.
- Challenges include the dominance of informality, gender disparities, and coordination across government levels.
If implemented effectively, the Shram Shakti Niti could improve labour-market conditions, though the broader challenge remains in creating gainful employment while balancing worker rights and business flexibility.
