Reimagining India’s Labour Agenda in the Age of AI and Digital Disruption

The New World of Work 

As India embraces the promise of a digital economy, the nature of work is being rapidly redefined. From gig platforms and AI-driven work management to the slow but steady automation of tasks, the labour landscape is undergoing a silent transformation. Yet, the policy and research architecture governing this vast and diverse workforce remains tethered to industrial-era assumptions. If India is to respond meaningfully to this moment, it must urgently reconfigure its labour policy, research focus, and training strategies.

An Informal Majority T

he Indian labour force is among the world’s largest and most complex. Over 90% of our workers are in the informal sector—without job security, formal contracts, or social protection. Historically, policy attention and academic labour research have concentrated on formal employment in traditional industries. However, with the rise of platform-based work (like food delivery, ride-hailing, and freelance digital services), this lens is proving insufficient.

Time for a Research Realignment 

A paradigm shift is essential. Labour research in India must now engage with newer realities: gig and platform work, algorithmic control, care work, data labour, and the blurred boundaries between self-employment and wage work. These are not fringe issues. They are fast becoming the defining features of 21st-century employment. Yet, few universities or dedicated research centres are systematically studying these shifts. Most research continues to orbit around outdated frameworks.

Building a Responsive Knowledge Ecosystem 

The time has come to reimagine the academic agenda. India needs a robust ecosystem of empirical, multidisciplinary, and policy-relevant labour research. Institutions such as the Indian Council of Social Science Research (ICSSR), University Grants Commission (UGC), and V.V. Giri National Labour Institute (VVGNLI) must take the lead in fostering studies that speak to today’s labour questions. Dedicated funding, data access, and collaborative platforms between academia, policymakers, and practitioners can help energise this effort.

Revolutionising Skilling and Training 

Parallel to research reform, the government must support a transformed training and skilling agenda. As technologies evolve, the half-life of skills is shrinking. Skilling systems should no longer be seen as one-time events for youth alone. Instead, they must evolve into continuous, modular, and inclusive systems that address workers across age groups and sectors. The National Skill Development Corporation and other agencies must embrace flexible, digital-first models that align with actual labour market demand, especially in semi-urban and rural India.

Empowering Workers Beyond Skills 

Beyond technical training, there’s also a need to educate workers about their rights, emerging forms of organisation, and avenues for social protection. The new labour codes, while debated, offer an opportunity to embed such provisions. But implementation will require local-level awareness, capacity building, and trust in institutions.

From Reaction to Foresight in Policy 

Policy, too, needs to evolve from a reactive to a proactive posture. We must anticipate shifts—such as the growing impact of AI on services, the changing nature of employment contracts, and the risks of digital exclusion. Labour observatories, futures labs, and inter-ministerial task forces could help create a more dynamic and responsive policy ecosystem.

Towards a New Social Compact 

Ultimately, India needs a new social compact—one that values work in all its forms, protects the most vulnerable, and ensures that the gains of technology are fairly shared. This will not happen by default. It will require political will, scholarly imagination, and institutional innovation.

The choices we make now will shape the dignity, security, and aspirations of millions. Let us rise to the occasion—not just to protect the past, but to prepare for the future.

Published by udaykumarvarma9834

Uday Kumar Varma, a Harvard-educated civil servant and former Secretary to Government of India, with over forty years of public service at the highest levels of government, has extensive knowledge, experience and expertise in the fields of media and entertainment, corporate affairs, administrative law and industrial and labour reform. He has served on the Central Administrative Tribunal and also briefly as Secretary General of ASSOCHAM.

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