Centre fast-tracks National Employment Policy: Report

The National Employment Policy (NEP) which aims to formalise India’s 50 crore strong workforce has been fast-tracked by the central government. NEP would provide employment opportunities and social security to migrant workers and those in informal sectors.

The policy is being formulated by a group of minister led by Thawar Chand Gehlot and has been pushed due to the impact of the coronavirus pandemic and subsequent lockdowns on India’s economy, The Economic Times reported.

Labour Minister Santosh Gangwar has directed officials to approach the policy “afresh”, keeping in mind COVID-19 related challenges, an official told the paper, adding that the NEP is a “priority and we will fill soon firm up the policy.”

Moneycontrol could not independently verify the report.

Besides employees, the NEP also seeks to provide a platform for new enterprises and industries to generate employment opportunities. It is also significant as India looks to become the new destination of choice for manufacturers looking to shift base out of China, the paper said.

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This is not the first time the NEP has been up for consideration. The then UPA government had first mooted the proposal in 2008, to no success. It was further solidified during the 2016 BRICS employment working group meet, after which the NDA government began works – again to not much success.

Notably, even before COVID-19 disrupted the Indian economy, the country was already facing a slowdown, the lockdowns have however made the situation worse. Data from the Centre for Monitoring Indian Economy (CMIE) showed unemployment in April and May at 23.5 percent – leaving 2.7 crore youth (aged 20-30) unemployed in the period.