Harnessing Frontier Technologies to Transform Lives of Informal Workers

— by vishal Sambyal

NITI Aayog’s new study explores how AI and frontier technologies can uplift India’s 90% informal workforce through the proposed “Mission Digital ShramSetu,” driving inclusion, productivity, and dignity in work.

Introduction: The Tech Promise for India’s Invisible Workforce

In the bustling streets, fields, and factories of India, nearly 90% of the nation’s workforce keeps the economy running — yet most remain unseen by digital transformation. From construction workers and artisans to delivery drivers and domestic aides, these informal workers form the backbone of India’s economic engine, contributing nearly 45% to the GDP. Now, a new initiative aims to change their story.

In a first-of-its-kind effort, NITI Aayog has released a study titled “AI for Inclusive Societal Development”, exploring how artificial intelligence (AI) and frontier technologies can be leveraged to uplift India’s informal sector. The report doesn’t just highlight challenges — it proposes a roadmap for inclusive technological empowerment through a new national mission: Mission Digital ShramSetu.

Context: The Reality of India’s Informal Sector

Despite their essential role, informal workers remain trapped in a cycle of low wages, irregular incomes, and limited opportunities. According to NITI Aayog, productivity in this sector averages just $5 per hour, nearly half the national average of $11 per hour.

Women, who make up about 37% of India’s workforce — well below the global average of 47% — face additional barriers due to unpaid caregiving and domestic responsibilities. This “invisible labor,” though critical to social stability, remains excluded from productivity measures and skill development initiatives.

The informal sector spans a vast landscape of trades and services:

  • Agriculture and allied activities (46–48%)
  • Construction and infrastructure (15–17%)
  • Civic and healthcare services (8–10%)
  • Retail and food services (6–8%)
  • Manufacturing (4–6%)
  • Artisans (2–4%)
  • Logistics and transportation (3–5%)

Yet, across these diverse fields, workers face the same fundamental challenges — financial instability, lack of skilling, unsafe conditions, and exclusion from social protection systems.

Key Challenges Confronting Informal Workers

1. Financial Fragility

Most informal workers operate without steady incomes, contracts, or formal identities. This makes them ineligible for institutional credit and vulnerable to exploitation and wage disputes.

2. Limited Market Access

Without access to verified digital platforms or job-matching systems, workers often depend on middlemen, leading to income instability and underemployment.

3. Skilling Deficit

Training opportunities are fragmented and outdated. Digital learning tools, when available, are often inaccessible due to language barriers or device limitations.

4. Social Insecurity

Lack of awareness, digital barriers, and non-portable social records prevent workers from benefiting from government schemes. Unsafe working conditions remain widespread.

5. Productivity Gaps

Many workers rely on minimal mechanization and outdated tools, stifling output despite significant physical effort.

What Are Frontier Technologies?

Frontier technologies are innovations that sit at the cutting edge of science and implementation, reshaping industries and societies. They include:

  • Digital technologies: Artificial intelligence, blockchain, IoT, big data, and cloud computing
  • Physical technologies: Robotics, 3D printing, autonomous systems
  • Biological technologies: Genetic engineering, brain-computer interfaces, human augmentation

These tools have the potential to redefine work, communication, and productivity — but only if they reach the workers who need them most.

Transforming Informal Livelihoods Through Technology

The NITI Aayog study emphasizes that AI alone cannot transform the informal sector. Instead, transformation depends on foundational enablers such as:

  • Affordable smartphones
  • Reliable internet connectivity
  • Regional language AI models
  • Low-cost hardware
  • Secure digital infrastructure for trusted transactions

When these elements converge, frontier technologies can enhance worker trust, enable real-time guidance, and create adaptive digital ecosystems that make livelihoods more stable and dignified.

Mission Digital ShramSetu: A National Call to Action

To bridge the gap between potential and reality, NITI Aayog has proposed a bold national initiative — Mission Digital ShramSetu.

This mission envisions an India where every informal worker, regardless of sector, has access to digital tools, skilling programs, and market linkages powered by AI and frontier technologies.

Key objectives include:

  • Building AI-driven platforms for verified worker identities and fair contracts
  • Enabling immersive learning and adaptive skilling tailored to real-world needs
  • Using blockchain for wage transparency and financial inclusion
  • Creating data-driven safety systems for occupational health monitoring

The mission’s ultimate goal is not just efficiency but empowerment — to ensure that technology enhances human potential rather than replacing it.

Expert Insights and Broader Implications

Policy experts have hailed this study as a necessary shift in India’s digital narrative.

“The global AI conversation has long focused on white-collar work and automation. NITI Aayog’s study reorients this focus toward the people who build our cities, grow our food, and keep our economy alive,” said a senior economist involved in the project.

Civil society leaders have echoed the call for urgency, warning that without inclusion-driven innovation, India risks deepening inequality. The study estimates that without intervention, informal workers’ annual incomes may stagnate at $6,000 by 2047, far below the $14,500 benchmark for achieving high-income status.

The Road Ahead: From Policy to Impact

The challenge now lies in implementation — building coalitions among government bodies, industries, academic institutions, and tech innovators to create scalable, inclusive solutions.

With the right investments and intent, AI can move beyond efficiency metrics to become an equalizer, giving millions of informal workers the recognition, tools, and dignity they deserve.

As NITI Aayog’s report concludes, “Decisions made today will determine whether emerging technologies deepen existing inequalities or unlock a more equitable and resilient future of work.”

Conclusion: Toward an Equitable Digital Future

India stands at a turning point. The technologies that have powered global innovation can now be harnessed to uplift the nation’s most vulnerable workforce. But the transformation will not happen automatically — it requires human intent, coordinated policy, and inclusive design.

If realized, Mission Digital ShramSetu could become a cornerstone in India’s journey toward equitable growth — where every worker, whether in a field or factory, can thrive in a digital economy that values their contribution.

Disclaimer:This article is based on official data and policy studies released by NITI Aayog. It aims to inform readers about ongoing developments in technology-driven inclusion and does not represent government views.