Quick Overview
NITI Aayog has released the report “AI for Inclusive Societal Development”, highlighting how Artificial Intelligence (AI) and frontier technologies can empower India’s informal workforce. The report proposes Mission Digital ShramSetu, a national framework aimed at digitally formalizing and uplifting nearly 490 million informal workers through technology-driven solutions like AI, blockchain, and robotics.
Introduction
The NITI Aayog report “AI for Inclusive Societal Development” presents a forward-looking vision for integrating Artificial Intelligence (AI) and related technologies to address challenges in India’s vast informal sector. With around 490 million informal workers—representing 85% of the total workforce—AI is positioned as a key driver for inclusive growth.
Mission Digital ShramSetu: A Vision for Inclusion
Mission Digital ShramSetu aims to create a technology-driven ecosystem that bridges informal workers with the digital economy. It emphasizes verifiable digital identities, transparent payment mechanisms, and inclusive skilling systems.
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Empowerment through Technology: Use of digital IDs to access payments, certifications, and social security benefits.
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Inclusive Skilling: Adaptive and multilingual training modules for upskilling informal workers.
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Federated Credentialing: A decentralized credential system for real-time verification of worker skills.
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Smart Contracts: Blockchain-based contracts ensuring timely and transparent payments.
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Grassroots Outreach: State-level programs to drive local adoption and digital literacy.
Governance is envisioned under an Apex Governing Body led by the Prime Minister, supported by sectoral task forces and state coordination units.
Challenges in India’s Informal Sector
Informal workers face persistent issues such as financial instability, limited market access, low productivity, and inadequate social protection.
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Financial Fragility: Delayed payments and lack of trusted identity limit access to formal credit.
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Market Access Barriers: Limited visibility and demand linkages restrict income stability.
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Skill Gaps: Outdated methods and low digital literacy hinder professional growth.
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Social Protection Deficit: Only 48% of informal workers have access to social security schemes.
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Gender Disparity: Female participation in informal trade remains as low as 15%.
Technology Interventions for Transformation
AI and frontier technologies can significantly enhance informal livelihoods:
| Technology | Application |
|---|---|
| AI-powered Smartphones | Multilingual voice and text support for access to digital platforms |
| Blockchain (DLT) | Transparent payments and trusted identities |
| Robotics & AR | Automated tasks and immersive skill training |
| Generative AI | On-demand task-based learning and knowledge sharing |
| Smart Contracts | Automated milestone-based wage disbursement |
| IoT & AI in Farming | Real-time monitoring for precision agriculture |
| Wearable Safety Gear | Health monitoring and accident prevention |
| Digital Wallets | Secure credential storage for employment and loans |
Conclusion
For India to achieve its Viksit Bharat 2047 vision, empowering informal workers through AI-driven inclusion is imperative. The NITI Aayog’s Digital ShramSetu offers a roadmap to formalize informal labor while ensuring that AI complements—rather than replaces—human work. By integrating innovation, social protection, and equitable access, India can redefine technological progress as a vehicle for inclusive prosperity.
CLAT/Exam Relevance Summary
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Prelims Focus: Mission Digital ShramSetu, NITI Aayog, AI, Blockchain, Informal Workforce Statistics.
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Mains Focus (GS Paper 3): Role of AI in inclusive development, employment generation, and social formalization.
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Essay/Interview Angle: Technology as a means for equitable growth, Digital inclusion, and the ethics of AI in labor empowerment.