Care Economy and Recognition of ‘Volunteer’ Care Work in India

1. Background

The Union Budget 2026–27 proposed strengthening India’s care economy by:

• Training 1.5 lakh multi-skilled caregivers

• Skills in geriatric care, core care, and allied services

• Training aligned with the National Skills Qualification Framework (NSQF).

However, the proposal raises concerns because millions of existing frontline workers providing care services are still treated as “volunteers” rather than formal employees.

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2. Definition: Care Economy

Care Economy refers to the sector that includes paid and unpaid work involved in caring for people, such as:

• Childcare

• Elderly care

• Health services

• Disability support

• Domestic work

It includes both formal workers (nurses, caregivers) and informal/unpaid caregivers (family members, community workers).

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3. India’s Existing Care Workforce

India’s welfare system relies heavily on female community workers.

Major categories include:

ASHA Workers

Accredited Social Health Activist (ASHA) Programme

Role:

• Maternal health monitoring

• Immunisation mobilisation

• Health awareness

• Linking communities to public health services.

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Anganwadi Workers

Part of:

Integrated Child Development Services (ICDS)

Role:

• Child nutrition

• Pre-school education

• Maternal care

• Growth monitoring.

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Mid-Day Meal Workers

Linked with:

PM POSHAN Scheme

Role:

• Provide meals to school children

• Improve nutrition and attendance.

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Estimated Size of Workforce

• More than 5 million women are engaged in these roles across India.

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4. Current Employment Status

These workers are classified as:

• “Volunteers” or “honorary workers”

Instead of formal employment.

Consequences

They often lack:

• Formal employment contracts

• Minimum wages

• Paid leave

• Social security

• Maternity benefits.

Instead they receive honorariums, which vary by state.

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5. Concept: Shadow Labour Force

Shadow labour force refers to workers who:

• Perform essential economic functions

• But remain informal, underpaid, and legally unrecognised.

In India, women care workers form a large shadow workforce supporting the welfare state.

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6. Gender Dimension: The “Care Penalty”

Definition

Care Penalty refers to the economic disadvantage faced by women due to their disproportionate responsibility for caregiving work.

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Evidence: Time Use Survey 2024

Data highlighted in Economic Survey 2025-26:

Women spend almost double the time on care work.

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7. Structural Causes

1. Gender Norms

Care work is viewed as:

• “Natural duty” of women

• Extension of household responsibilities.

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2. Informalisation

Because care is seen as unskilled work, it is:

• Underpaid

• Informal

• Lacking labour protections.

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3. State Dependence on Low-Cost Labour

Government welfare programmes rely on:

• Low honorariums

• Community-based female workers.

This keeps welfare programmes cost-effective but inequitable.

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8. Legal Dimension

Important judicial reference:

Supreme Court Judgement (2025)

Dharam Singh & Anr. vs State of Uttar Pradesh & Anr.

Key principle:

• Work that is recurrent and central to an institution cannot be treated as temporary indefinitely.

This provides a legal basis to argue that:

• ASHA and Anganwadi workers should receive formal employment status.

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9. International Framework

ILO 5R Framework for Decent Care Work

Developed by:

International Labour Organization

The 5R principles:

1. Recognise care work

2. Reduce unpaid care burden

3. Redistribute care responsibilities

4. Reward care workers with fair wages

5. Represent care workers in decision-making.

India has partially addressed the first three, but Reward and Represent remain weak.

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10. Policy Gap Highlighted in the Budget

The Budget proposes training new caregivers, but does not clearly address:

• Upgrading existing workforce

• Formalising their employment

• Providing social security.

Thus a policy paradox emerges:

• New workers will be skilled and certified

• Existing workers remain informal volunteers.

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11. Policy Suggestions (Way Forward)

1. Formal Recognition

Convert ASHA and Anganwadi roles into regular government posts.

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2. Skill Upgradation

Extend NSQF-aligned training to existing workers.

Relevant framework:

National Skills Qualification Framework (NSQF)

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3. Fair Wages and Social Security

Provide:

• Minimum wages

• Pension

• Maternity benefits

• Health insurance.

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4. Institutional Representation

Include care workers in:

• Policy consultations

• Welfare programme design.

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5. Strengthening the Care Economy

Recognising care work can:

• Increase female labour force participation

• Improve health and nutrition outcomes

• Promote inclusive growth.

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12. Importance for UPSC

Prelims

Possible areas:

• Time Use Survey

• NSQF

• ASHA / ICDS schemes

• ILO care economy frameworks.

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GS-II

Topics:

• Welfare schemes

• Social justice

• Informal labour

• Gender equality.

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GS-I

Topics:

• Women’s work participation

• Gender roles in society.

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13. Conclusion (Mains Ready)

India’s welfare architecture depends heavily on a large female care workforce that remains underpaid and informally employed. Recognising, formalising and fairly compensating these workers is essential not only for gender justice but also for strengthening the country’s health, nutrition and childcare systems. A robust care economy requires both institutional reform and societal recognition of care as skilled labour.