India and Brazil have entered a partnership to share digital labor infrastructure, including the e-Shram portal, at the BRICS meeting in Hyderabad. The collaboration aims to boost social protection and skill development by leveraging India's experience with its 315-million-user informal worker database.
India and Brazil have officially deepened their bilateral ties by signing a partnership focused on labor, employment, and digital skills. This agreement was formalized during the BRICS Labour and Employment Ministers’ Meeting held in Hyderabad, where India currently holds the BRICS Chairship for 2026.
Digital Public Infrastructure and e-Shram
A primary focus of the cooperation is the sharing of India’s digital public infrastructure. The Indian government showcased the e-Shram portal, which has successfully registered over 315 million workers in the informal sector. By creating this centralized database, the government has been able to link these workers directly to various social welfare programs. Brazil has expressed interest in adopting similar technical models to improve its own employment services and social protection systems, making this a key area for potential technical knowledge transfer between the two nations.
Labour Law Consolidation
During the discussions, Indian officials provided insights into the country’s ongoing labour reforms. The primary effort involves consolidating 29 older, fragmented labour laws into four simplified Labour Codes. This process is intended to reduce the regulatory burden on industries while simultaneously enhancing protections for employees. The government reported that social protection coverage in India has expanded, moving from 64.3% in 2025 to roughly 68% as of mid-2026. These reforms are a significant part of India's long-term strategy to formalize its workforce and improve labor market efficiency.
BRICS CONNECT and Future Work
The agreement also supports the broader BRICS CONNECT initiative, a collaborative network designed to improve employability and foster the growth of new skills across member nations. This framework involves ongoing knowledge sharing regarding technological integration in the job market. Beyond the bilateral pact, the Ministerial Session chaired by Union Minister for Labour and Employment Mansukh Mandviya resulted in a collective declaration from all BRICS nations. This declaration emphasizes the need for resilient and inclusive labor markets as the global nature of work continues to evolve.
For investors, these policy shifts and international partnerships are relevant as they signal an ongoing commitment to formalizing the Indian labor market. The continued expansion of social protection and the adoption of standardized labour codes are aimed at creating a more predictable and stable regulatory environment for businesses. The key monitorable for the coming quarters will be the implementation pace of these four Labour Codes and the resulting impact on labor compliance costs for companies operating within the formal and informal sectors.