
In an effort to align India’s job market with the rapidly changing world of work, the Union Ministry of Labour and Employment has released the draft of its new national labour and employment policy, ‘Shram Shakti Niti 2025’.
The proposed framework envisions a future where India’s workforce is AI-ready, green-skilled, and empowered through formal job opportunities, as per a report by Hindustan Times.
The policy comes at a time when the country faces a persistent challenge: economic growth without enough new jobs. Despite India’s rising GDP, the pace of job creation has lagged, leaving a growing youth population eager for quality employment opportunities.
Labour ministry to act as “employment facilitator”
The draft redefines the role of the Ministry of Labour and Employment (MoLE), from being a regulator to an “Employment Facilitator”. It aims to create convergence among workers, employers, and training institutions using AI-powered systems for job matching, skill assessment, and career guidance.
The policy also strengthens the National Career Service (NCS) portal, transforming it into India’s Digital Public Infrastructure (DPI) for Employment. This would make NCS the country’s central digital platform for job listings, credential verification, and skill alignment.
Focus areas: Green jobs, gig workers, and women’s participation
The draft policy highlights the need to expand female workforce participation, provide social security for gig and platform workers, and promote green and technology-driven employment sectors.
The document notes that India will soon have one in every five working-age people in the world, making it critical to create at least 115 million new jobs by 2030.
According to the government’s Economic Survey 2024, India must generate 7.85 million non-farm jobs every year to meet the growing demand, a figure that far exceeds current employment rates.
Implementation in three phases
The draft proposes a three-phase rollout:
Phase I (2025–27): Establish institutional frameworks, integrate social security systems, and pilot AI-based job matching through NCS.
Phase II (2027–30): Launch nationwide social security accounts and skill-credit systems.
Phase III (Beyond 2030): Focus on consolidation and continuous improvement.
At the national level, an inter-ministerial council, chaired by the Minister of Labour and Employment, will oversee implementation. States and districts will have their own labour missions and resource centres to ensure local execution