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Concerns Over India's Labour Policy 2025

Published on: 12-Nov-2025

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Concerns Over India's Labour Policy 2025

Article Summary

Key Highlights from Labour Policy and Forced Labour Investigation

Constitutional References:

  • Article 14: Right to equality before the law.
  • Article 15: Prohibition of discrimination on grounds of religion, race, caste, sex, or place of birth.
  • Article 16: Right to equality of opportunity in matters of public employment.
  • Article 23: Prohibition of traffic in human beings and forced labour.
  • Article 41: Right to work, education, and public assistance in certain cases.
  • Directive Principle of State Policy (Directive 42): State’s obligation to secure just and humane conditions of work and maternity relief.
  • Article 21: Right to life and personal liberty.
  • Article 12: Concept of just governance.

Statistics and Economic Indicators:

  • 11 million people in India live in modern slavery, the highest in the world.
  • 90% of India's workforce is informally employed, as reported by the International Labour Organization (ILO) in 2024.

Government Policies and Schemes:

  • Introduction of Shram Shakti Niti 2025: A draft policy aiming to improve labour conditions, inspired by cultural texts but criticized for ignoring current realities.
  • Universal Social Security Account: Merges various employee benefits and health schemes but lacks assured funding leading to concerns over its effectiveness.
  • Target of 35% female labor participation by 2030, currently at 33.7%.
  • Occupational Safety, Health and Working Conditions Code (2020): Emphasis on enforcement and risk audits for better worker conditions.

Judicial Judgments and Legislative Developments:

  • The draft policy faces criticism for flouting existing labour laws, enabling wage theft, and dismissing worker rights.

ILO Conventions and International Agreements:

  • Commitment to the ILO Convention 155 regarding occupational safety and health.
  • Needs alignment with ILO Convention 29 on forced or compulsory labour.

Science & Technology Updates:

  • Use of Artificial Intelligence (AI) in the Ministry of Labour and Employment’s National Career Service for job matching and skill alignment.
  • Concerns regarding AI bias potentially violating Article 15 protections.

Challenges and Gaps:

  • Lack of union protections and inadequate enforcement mechanisms raise concerns about labour rights and dignity.
  • Digital exclusion posed by a literacy rate of only 38%, particularly affecting vulnerable groups like women and low-literate individuals.
  • Absence of concrete funding and penalties mentioned in the policy could jeopardize its implementation.

Environmental and Societal Considerations:

  • Policy emphasizes green-tech advancements and reskilling initiatives aligned with Sustainable Development Goal 13 regarding climate change.
  • Risks of widening inequalities between urban and rural sectors in job opportunities.

Recommendations:

  • Immediate action needed for pilot program rollouts focusing on rights audits and tripartite enforcement mechanisms.
  • Urgent need for offline access provisions for digitally excluded workers.
  • Importance of transparent grievance redressal systems to ensure accountability.

Summary

The Shram Shakti Niti 2025 policy aims to modernize India's labour landscape while addressing extensive issues such as forced labour and worker exploitation. However, it raises significant concerns about regulatory oversight, social justice, and effective implementation due to gaps in funding and protections. The success of this initiative will hinge on actionable pilot programs and a commitment to restore dignity and rights for India's informal workforce.

Key Terms & Concepts

Shram Shakti Niti 2025New labour policy introduction
11 millionPeople in modern slavery
Articles 14, 16, 23Constitutional protections violated
Article 41Right to work, education
e-SHRAMSocial security scheme
2020 Occupational Safety, Health and Working Conditions CodeOccupational safety regulations
ILO Convention 155Women's occupational safety standards
91.75%Graduate mismatch in jobs
35%Target female labour participation
Sustainable Development Goal 13Climate action goal
Digital Personal Data Protection ActRegulation on data privacy
Labour and Employment Policy Evaluation Index (LEPEI)Monitoring policy effectiveness
National Career Service (NCS)Job matching service
Artificial Intelligence (AI)Technology in employment services
400 millionInformal workers affected

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