Union Minister for Labour & Employment and Youth Affairs & Sports, Dr. Mansukh Mandaviya, announced at the 4th Global Industrial Relations Summit that India's social protection systems now cover approximately 101 crore people, representing over 68% of the country's population. This achievement has been recognized by the International Labour Organization (ILO) at the recent BRICS Labour Ministers' Meeting in Hyderabad.
Dr. Mandaviya emphasized the importance of harmonious industrial relations requiring continuous coordination among governments, industry, employers, workers, and trade unions to ensure simultaneous economic development and employment generation. He highlighted that industrialisation remains essential for national development as it drives employment creation, while also noting the growing significance of self-help groups and cooperative models, particularly women-led initiatives, in expanding livelihood opportunities and promoting women's empowerment.
The Minister reported significant improvement in employment elasticity, stating that every one percent increase in GDP now generates 1.11 percent employment growth, a dramatic improvement from the 0.008 percent growth seen twelve years ago. He attributed this positive trend to sustained economic growth under Prime Minister Narendra Modi's leadership, supported by stable taxation, rising savings, higher purchasing power, and increased manufacturing.
Regarding social security reforms, Dr. Mandaviya indicated that the Employees' State Insurance Corporation (ESIC) may not remain the sole provider of care under its scheme, suggesting that well-run private hospitals could be designated as ESIC facilities. He also noted that the Employees' Provident Fund Organisation (EPFO) has moved to fully digital claims and automatic transfer of accounts on a single Universal Account Number (UAN), with UPI-based withdrawals under consideration.
Ms. Michiko Miyamoto, Director of ILO DWT for South Asia and Country Office for India, congratulated India on expanding social security coverage to over one billion people, noting that this achievement would play a key role in propelling India's economic growth in the future. The summit was organized by the All India Organisation of Employers (AIOE) in association with Federation of Indian Chambers of Commerce and Industry (FICCI) and ILO.