e-Shram: integrating AI to connect India's informal workers to better jobs with social security

MicrosoftAbout 3 min readDec 26, 2025Watch original
THE SUMMARYAI-generated

Key Concepts

  • e-Shram: National Unorganized Workers Database – a government initiative to register unorganized workers in India.
  • NCS (National Career Service): A one-stop portal connecting job seekers, employers, training providers, and counselors.
  • Azure OpenAI: Microsoft’s AI service integrated into NCS for skill matching, resume building, and skill development recommendations.
  • Informal Sector/Unorganized Workers: Workers lacking formal employment benefits and operating on day-to-day wages.
  • Scalability, Reliability, Security: Key requirements for the NCS platform infrastructure.

The Challenge of India’s Informal Workforce

India faces a significant challenge with over 400 million workers in the unorganized, or informal, sector. These workers typically earn daily wages without access to social security benefits or stable employment. The core issue is the need to transition these individuals from the informal to the formal economy to foster broader economic development. This transition requires providing access to opportunities and support systems previously unavailable to this demographic.

e-Shram and the National Career Service (NCS)

To address this, the government launched the e-Shram initiative, resulting in the creation of a National Unorganized Workers Database. This database serves as the foundation for delivering social security benefits to these workers and, crucially, provides access to the National Career Service (NCS) portal. The NCS is positioned as a comprehensive solution for all stakeholders in the employment ecosystem: job seekers, employers, training providers, and career counselors.

AI-Powered Matching and Skill Development within NCS

A key feature of the NCS portal is its utilization of Artificial Intelligence (AI). Specifically, the platform employs AI-based matching algorithms to connect job seekers’ skills with relevant employer requirements. This allows informal workers to efficiently identify suitable employment opportunities. Furthermore, NCS incorporates an AI-powered resume builder to assist workers in creating professional resumes. If skill gaps are identified, the AI tool provides personalized recommendations for skill development resources, effectively upskilling the workforce.

Technical Infrastructure: Microsoft Azure

The development and implementation of the NCS portal required a robust and scalable technical infrastructure. The project team selected Microsoft Azure due to its ability to meet critical requirements of scalability, reliability, and security – essential for handling the anticipated registration of millions of unorganized workers. The integration of Azure OpenAI has been described as a “game changer” in enhancing the platform’s capabilities.

Real-World Impact: A Case Study

A specific example illustrates the positive impact of the NCS portal. An individual previously working through a contractor utilized the NCS portal to specify their job preferences. The AI-powered matching system connected them with a driver position at a transportation company in Delhi. This resulted in a 50% increase in earnings and provided opportunities for professional development. The individual expressed confidence in the platform’s ability to facilitate a stable future, stating, “I’m quite young, I am capable of a lot of things, I am getting to learn a lot from this platform. And I’m confident that it can help me build a stable life.”

Current Progress and Future Expansion

As of the time of this discussion, approximately 150 million workers are registered on the NCS portal. The government is actively working to integrate additional schemes and benefits to further support these workers. The overall strategy emphasizes leveraging AI to create opportunities for individuals and the youth of the country.

Conclusion

The e-Shram initiative and the NCS portal, powered by Microsoft Azure and Azure OpenAI, represent a significant step towards formalizing India’s vast unorganized workforce. By providing access to social security, job opportunities, and skill development resources, the program aims to improve the livelihoods of millions and contribute to the nation’s economic growth. The success hinges on the continued scalability, reliability, and intelligent application of AI technologies within the NCS ecosystem.

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