How the National Labour Card Program will help to achieve Viksit Bharat.
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Table of contents
Why Does India Need a National Labour Card?
Current challenges of not tracking labour.
Informal Economy Dominance: Nearly 80-90% of India’s workforce operates in the informal sector, without job security, benefits, or legal protections.
Skill Mismatch: Many workers are underemployed or employed in roles that do not utilise their full skill level due to a lack of formal records and effective job-matching systems.
Policy Inefficiency: The limited availability of data on workforce skills hampers effective policy-making.
Exploitation of Labour: Without formal recognition, many workers (e.g., domestic workers, gig workers) face exploitation and lack social security benefits.
Opportunities for the National Labour Card.
Build a centralised labour database to formalise and empower the workforce.
Align workforce capabilities with India’s industrial and service sector needs.
Enhance labour mobility across regions and sectors to mitigate regional disparities.
Benefits of the National Labour Card
A. For Workers:
Recognition and Dignity: Formal identity as part of the workforce.
Access to Benefits: Easy enrollment in government schemes (insurance, pension, healthcare).
Skill Validation: Verified proof of skills and qualifications for better job opportunities.
B. For Employers:
Verified Profiles: Simplified hiring process with access to a database of skilled workers.
Compliance Ease: Help employers ensure minimum wage and other labour law compliance.
Workforce Matching: Quickly find workers with the right skill sets.
C. For Policymakers / Government:
Data-Driven Policies: Use insights from the database to create targeted workforce development initiatives.
Formalisation of the Economy: Transitioning informal workers to the formal sector.
Labour Market Monitoring: Track trends in employment, skill demand, and gaps.
National Labour Card Integration with National Development Goals
A. Economic Impact
Boost Productivity: The efficient allocation of skilled labour will enhance productivity in both the industrial and service sectors.
Formalisation of Workforce: Transitioning workers into the formal economy increases tax revenue and access to financial services.
Attract Foreign Investment: A robust labour database makes India an attractive destination for industries requiring skilled labour.
B. Social Impact
Empower Marginalised Communities: Ensure recognition and opportunities for traditionally underrepresented groups.
Gender Equality: Highlight and support the contributions of women in pink-collar jobs.
Labour Rights: Protect workers against exploitation and unsafe working conditions.
C. Strategic Impact
Preparedness for Industry 4.0: Identify reskilling needs to adapt to automation and technological shifts.
National Security: A united and empowered workforce strengthens internal stability.
INDIA’s National Labour Card aligns with India’s vision of inclusive growth and economic empowerment. This initiative has the potential to formalise the workforce, bridge skill gaps, and propel the nation toward becoming a global economic superpower, also known as Viksit Bharat, before 2047.
