Direct Request (CEACR) - adopted 2006, published 96th ILC session (2007)

1. General economic policies. The Committee notes the information provided by the Government in its report for the period ending May 2005. It notes that the mid-term Appraisal of the Five Year Plan (2002-07) has reiterated that gainful employment can only come from robust growth and the need to ensure acceleration of agricultural growth as an integral part of a sustainable employment strategy. Despite the healthy economic growth, the Government indicates that the formal sector of the economy has not been able to increase sufficiently. The Government has introduced supportive policies in order to promote sectors such as construction, real estate and housing, transport, small-scale industries, modern retailing, information technology and tourism. While taking note of this information, the Committee asks the Government to provide information in its next report on the results achieved under the Tenth Five-Year Plan 2002-07 to create gainful employment, in particular by sustaining an adequate level of public investment in agriculture. In this respect, the Committee would like to examine information on the manner in which other macroeconomic policies, such as monetary and fiscal policies, advance the promotion of full, productive and freely chosen employment and how the measures taken to promote full and productive employment operate within a “framework of a coordinated economic and social policy” (Articles 1 and 2 of the Convention).

2. Collection and use of employment data. The Committee notes with interest the estimated data on the labour market trends provided by the Government in its report indicating that 9 million persons have been identified as openly unemployed out of a total labour force of more than 406 million. The growth rate of employment is less than the growth rate for the labour force, resulting in an increase in the unemployment rate. The Government further indicates that the percentage of the population below the poverty line has come down from 36 per cent in 1993-94 to 26.1 per cent in 1994, showing an improvement in the income level of the employed. Nevertheless, organized sector employment is not growing and its share is only 1 per cent of the total employment. Self-employment and casual employment continue to play a pivotal role in integrating the unemployed into the labour market. The Committee hopes that in its next report the Government will continue to provide full and detailed statistical data on the situation and trends of the active population, employment, unemployment and underemployment disaggregated by sector, age, sex and skill level and that it will indicate how these data are being used to prioritize and formulate employment policies in favour of socially vulnerable groups such as young persons, women jobseekers, scheduled castes and scheduled tribes, ethnic minorities and people with disabilities (Article 1, paragraph 2, and Article 2(a)). Please also indicate the methodology used to estimate the size of the total labour force and the other data provided in the Government’s report.

3. Workers in the rural sector and in the informal economy. The Committee notes with interest that the National Rural Employment Guarantee Bill introduced a scheme for rural areas with nationwide coverage which provides a maximum of 100 days of employment in public works in a fiscal year to all those adults who would seek unskilled manual employment. It also notes the launch of the National Food for Work Programme to generate supplementary wage employment and the provision of food security in 150 districts. The Committee requests the Government to provide information in its next report on the implementation of rural employment policies and programmes and on any other measures it has taken to promote employment and improve the quantity and quality of employment opportunities in rural areas. The Committee also reiterates its interest in examining in the next report information on the measures taken to reduce the decent work deficit for men and women workers in the informal economy and to facilitate their insertion in the labour market.

4. Labour market policies and training. In reply to the Committee’s previous comments, the Government states that it runs 500 industrial training institutes and a number of other specialized institutions to provide vocational training to workers. A national vocational training policy is currently under discussion. The Committee requests the Government to continue to provide information regarding measures taken to ensure that current training is responsive to labour market demands and the efforts made to provide training to workers outside the organized sector.

5. Consultation of the representatives of the persons affected. In reply to its previous comments, the Government indicates that workers’ and employers’ organizations are actively associated with the planning process in India. The Ministry of Labour also places, whenever considered appropriate, matters relating to employment for discussion in the Indian Labour Conference. A special Tripartite Committee has also been formed to consider the impact of the new industrial policy on problems of labour and related matters and to make appropriate recommendations. The Committee invites the Government to provide information in its next report on any recommendation made by the above tripartite committee in relation with the formulation and implementation of employment measures. Please also indicate the measures taken or envisaged to ensure that representatives of the rural sector and the informal economy are also associated with the consultations required by Article 3 of the Convention.