November 16, 2024
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National Employment Policy (NEP): A Comprehensive Framework For Workforce Development

National Employment Policy - Lawforeverything

On this page you will read detailed information about National Employment Policy.

Introduction

The National Employment Policy (NEP) of India is an ambitious framework aimed at addressing the nation’s diverse employment challenges. It seeks to align workforce development with the dynamic needs of the economy while promoting inclusive, sustainable, and equitable job creation. The NEP emphasizes harnessing India’s demographic dividend to achieve long-term socio-economic goals.

Inception of the Policy

The idea of a National Employment Policy in India gained traction in the early 2000s due to growing concerns about unemployment and underemployment. While India achieved significant economic growth post-liberalization, it struggled to generate adequate jobs, especially in labor-intensive sectors. Over the years, various task forces and committees emphasized the need for a coherent employment strategy. The Ministry of Labour and Employment formally initiated the NEP’s development to address these challenges holistically.


Overview of the National Employment Policy (NEP)

The NEP is designed to:

  • Promote job creation across sectors, focusing on manufacturing, agriculture, and services.
  • Enhance skills development through industry-academia collaboration.
  • Support the formalization of the workforce, ensuring access to social security and benefits.
  • Address regional disparities in employment opportunities.
  • Enhance the structure supporting women’s involvement in the workforce.

The policy integrates a multi-sectoral approach involving ministries, state governments, and stakeholders such as trade unions, industry bodies, and academia.


E-Shram Portal

Launched in 2021, the E-Shram Portal is a critical component of India’s employment ecosystem. It serves as a national database for unorganized workers, ensuring better access to social security schemes. As of 2024, over 350 million workers have registered on the platform.

Key features:

  • Issues a Universal Account Number (UAN) to workers.
  • Offers access to government benefits, such as insurance and healthcare.
  • Facilitates policy planning by providing accurate workforce data.

Why Do We Need a National Employment Policy?

  1. Youth Unemployment: India has the largest youth population globally, and unemployment among this demographic poses significant socio-economic challenges.
  2. Skilling and Reskilling: Rapid technological advancements demand continuous workforce upskilling.
  3. Informal Sector Dominance: Over 90% of India’s workforce is in the informal sector, lacking job security and benefits.
  4. Gender Gap: Women’s participation in the labor force remains among the lowest globally.
  5. Regional Imbalances: Employment opportunities are concentrated in urban areas, leaving rural regions underserved.

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Recent Developments on India’s National Employment Policy

As of November 2024, the Government of India has finalized the draft of the NEP. The policy emphasizes:

  • Green Jobs: Promoting environmentally sustainable occupations.
  • Gig and Platform Economy: Establishing frameworks to protect gig workers’ rights.
  • AI and Automation: Ensuring the workforce adapts to technological disruptions. The government aims to roll out the policy in early 2025, targeting the creation of 50 million jobs over the next decade.

Other Government Efforts to Support Employment

  1. Skill India Mission: This scheme focuses on equipping youth with industry-relevant skills.
  2. PMEGP (Prime Minister’s Employment Generation Program): This scheme offers financial support for micro-enterprises.
  3. Atmanirbhar Bharat Abhiyan: This scheme boosts local manufacturing and job creation.
  4. Start-Up India and Stand-Up India: This scheme promotes entrepreneurship among youth, women, and marginalized groups.
  5. MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act): This scheme provides employment to rural households through guaranteed 100 days of work annually.

Conclusion

The National Employment Policy represents a transformative step toward addressing India’s employment challenges. By integrating technology, sustainability, and inclusivity into workforce development, the NEP seeks to unlock the full potential of India’s labor force. When combined with existing initiatives like the E-Shram Portal, Skill India Mission, and Start-Up India, the NEP can pave the way for an economically robust and socially equitable India.

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Adv. Viraj Patil Co-Founder & Senior Partner of ParthaSaarathi Disputes Resolution LLP is a Gold Medalist in Law LLB (2008) & Master in Laws LLM specializing in Human Rights & International Laws from National Law School of India University (NLSIU) Bangalore, India’s Premiere Legal Institution.

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