New Delhi: India, with almost 85% of its labour force in the informal sector generating over half of the country’s GDP, requires a shift towards formal employment, according to the Indian Staffing Federation (ISF).
Executive Director Suchita Dutta highlighted the urgent need to address income inequality and rising poverty levels by formalising the workforce to ensure equitable opportunities and sustainable livelihoods.
In its vision paper, India@Work: Vision Next Decade, ISF emphasised formalising the country’s over 400 million informal workers and anticipated that organised staffing companies could play a significant role.
According to Lohit Bhatia, ISF president, the apex body will focus on three crucial aspects to address the challenges: expanding social security coverage, enhancing in-hand wages, and implementing labour codes to minimise obstacles to favourable working conditions.
The Hindu reported, citing the document, that ISF was going beyond stop-gap solutions, inviting inclusion through formalisation in the labour market.
“A noticeable distinction was seen during the pandemic, where the formal workforce, comprising less than 15%, had access to their social security, which aided them in overcoming the challenges,” it said.
“Some of the recommendations made by ISF included removing employment bottlenecks, urgent implementation of the four labour codes in India, policy changes and encouraging schemes, consideration of employment services as ‘merit services’, with lower GST slab tax rates at 5% with ICT benefits instead of the current 18% and linking of skilling initiatives to employment,” it added.
