As of August, the government’s e-Shram portal for informal and unorganised workers had listed a total of 29.8 crore registrations. The Economic Survey of 2021-’22, however, estimated that India had 43.99 crore informal workers in the 2019-’20 fiscal year – which means that half the workforce is not represented on the portal.
The numbers show that there is a long way to go for the portal to become completely effective.
The e-Shram portal launched in August 2021 as part of the response to the distress of informal and unorganised workers following the Covid-19 pandemic in 2020. Lockdowns had led to losses in jobs and income and heightened vulnerability.
The government’s admission of a lack of crucial data on unorganised workers had pointed to the urgent need for a national database, echoed by a Supreme Court directive in June 2021.
The e-Shram portal was designed with clear objectives:
i) to register, enumerate and recognise informal sector workers;
ii) link them to social security schemes;
iii) provide relief and extended social security coverage
The portal covers an exhaustive list of sectors and permits self-declaration of occupation without requiring documentary proof or employer verification.
But limited reach, digital inaccessibility and technical problems are proving to be hurdles in its ambitions, ultimately at the cost of vulnerable workers.
By creating a more inclusive and accessible registration process and enhancing social protection, the government can ensure that workers receive the recognition and support they deserve.
Within four months of the portal’s launch, it had registered an impressive 17.7 crore workers as of December 31, 2021. By December 2022, this number increased to 28.5 crore. However, the pace of growth significantly slowed down by July 2023, with registrations only reaching 28.9 crore and by August 2024, the total stood at 29.8 crore.
This suggests challenges in scaling up registration and reaching more workers. For instance, when considering specific state and occupation-wise data, approximately 43,000 street vendors have been registered in Delhi under the e-Shram scheme – this includes food and non-food vendors.
However, a civic survey in 2022 identified 75,000 street vendors. Furthermore, street vendor associations, unions and collectives estimate the number of street vendors in Delhi to be over 400,000. This stark contrast highlights the gap between new registrations, previous surveys and ground realities.
The key issues that come to the fore include limited outreach, lack of documentation, confusing registration process and digital barriers to registration. The portal will need targeted strategies to engage underrepresented groups.
One of the most significant barriers is the digital divide. Many workers, particularly women, lack access to smartphones and affordable internet, relying on external support to navigate the registration process.
Language barriers and the complexity of the portal interface add to the challenges, making it difficult for many workers to complete their registration. Initially, technical issues such as problems receiving OTPs and server congestion further complicated the process.
The mandatory requirement of mobile-linked Aadhaar and bank accounts is a major hurdle for many workers. The lack of adequate documentation also prevents many from registering, excluding a large segment of the workforce from the benefits of the scheme. This requirement is particularly burdensome for women, who may not have control over their documentation or access to necessary resources.
Awareness about the e-Shram portal and its benefits is also limited. Labour officers and Common Service Centres often lack the training and resources to effectively disseminate information and assist workers.
The linkage between the e-Shram registration and existing social security schemes is not effectively implemented, leaving many workers without the intended benefits. For instance, registering on e-Shram does not automatically ensure welfare benefits for worker, even though they are eligible for most pro-poor schemes,
The portal has also overlooked ongoing initiatives by sectoral social schemes. For instance, registrations under The Building And Other Construction Workers’ (Regulation Of Employment And Conditions Of Service) Act, 1996, and survey under The Street Vendors (Protection Of Livelihood And Regulation Of Street Vending) Act, 2014. It is also unclear what happens to existing state government registries under this scheme.
Despite the shortcomings, a well-designed database for informal sector workers can offer several benefits. First, it provides a clearer understanding of the sector’s size, composition and economic contribution. By cataloging details, policymakers and researchers can develop more accurate economic models and policies that better address the needs of this workforce. This data also highlights the sector’s role in the broader economy, justifying increased support and integration into national social and economic planning.
Second, a database enhances access to social protection programmes. Many informal workers lack access to benefits such as health insurance, pensions, and unemployment support. By maintaining records of workers and their specific needs, the government can design targeted interventions and extend these essential services to informal workers.
Third, it facilitates better financial inclusion. With detailed information on income patterns and financial behaviour, government and finance institutions can create tailored services for informal sector workers, such as microloans and budget plans.
Finally, it empowers workers by providing them with information and resources to advocate for their rights and improve working conditions.
To make the e-Shram portal more accessible, it is crucial to simplify the registration process and provide multiple identity documentation options. Establishing registration desks close to where workers live or work, coupled with awareness-raising and digital literacy programmes, can improve registration rates.
Multilingual support and community outreach will further enhance inclusivity. Maintaining data on migrant workers, caste, unemployment and other relevant metrics can help in better policy formulation and implementation.
Formalising the role of labour organisations in supporting workers, building the capacity of unions, nonprofits and Common Service Centres centres and avoiding duplicates by involving welfare boards and municipality data on workers are essential steps towards a robust and inclusive registration system.
The e-Shram registry should be accompanied by social protection measures, including healthcare, insurance, pensions, and skill training support. Tailored support for vulnerable groups is crucial for the overall success of the initiative.
The government should enhance the e-Shram dashboard by including detailed data on the number of beneficiaries who have received benefits through the registration scheme. Such transparency will help track the effectiveness of the programme, identify gaps in outreach and service delivery and ensure accountability.
The e-Shram portal holds immense potential to transform the lives of India’s informal sector workers. If properly implemented, it can be a cornerstone in achieving social justice and economic stability for billions of workers in the informal sector across the globe.
Shalaka Chauhan is a researcher and a PhD scholar at Dr BR Ambedkar University, working on urban policy, social protection and the informal economy.