NITI Aayog Proposes AI-Powered ‘Digital ShramSetu’ Mission to Empower 490 Million Informal Workers

NEW DELHI, October 13, 2025 – In a landmark move to formalize and uplift India’s vast informal sector, NITI Aayog today released a comprehensive study titled “AI for Inclusive Societal Development.” The report proposes a new national mission, “Digital ShramSetu,” envisioned as a technology-driven bridge to integrate the country’s 490 million informal workers into the formal economy.

The study highlights that India’s informal workforce, representing about 85% of the total labor force and contributing roughly 45% to the GDP, remains plagued by financial fragility, skill gaps, and a lack of social security. The proposed mission aims to address these challenges head-on by harnessing cutting-edge technologies like Artificial Intelligence (AI), blockchain, and robotics.

What is Mission Digital ShramSetu?

Mission Digital ShramSetu is a transformative initiative designed to create a unified digital platform for informal workers.Its core objectives include:

• Empowerment Through Technology: Creating verifiable digital identities for workers to ensure access to timely payments, skill certifications, and social security benefits.

• Fair and Transparent Payments: Implementing blockchain-based smart contracts to automate wage disbursements, reducing payment delays and disputes.

• Inclusive Skilling: Developing adaptive, multilingual, and offline-compatible training modules using Augmented Reality (AR) and other immersive learning tools to upskill workers.

• Verified Credentials: Establishing a decentralized system allowing employers, training providers, and government agencies to issue and verify worker credentials in real-time.

The report details how technologies can directly tackle long-standing issues. For instance, AI-powered features on affordable smartphones will enable multilingual interactions, while 5G connectivity will ensure high-speed access to digital services. For safety, AI-powered wearable gear could monitor worker health in hazardous environments, while IoT sensors can optimize practices in agriculture.

Addressing Systemic Challenges

The NITI Aayog study underscores the severe challenges faced by the informal workforce. The average informal worker earns only about USD 1,800 per year and has productivity levels less than half the national average. Only 48% have access to social security, and they often lack verifiable identities, hindering their access to formal credit and consistent market opportunities.

“The goal of a Viksit Bharat 2047 cannot be realized without empowering its informal workforce,” the report states. “AI must not replace human labour – it must enhance it. Timely action through Digital ShramSetu can ensure that India’s growth story becomes one of inclusive prosperity.”

Governance and Structure

To ensure effective implementation, the mission proposes a robust governance structure. An Apex Governing Body, chaired by the Prime Minister, would oversee policy and budget decisions. Sectoral Task Forces focusing on high-employment areas like construction, agriculture, and healthcare would design and implement solutions, while State Coordination Units would ensure local adaptation and on-ground execution.

This initiative aligns with India’s goal to formalize 73.2% of its informal enterprises by 2047 and builds upon existing schemes like the eShram Portal and Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) by creating a comprehensive, technology-led ecosystem for worker welfare.