Budget 2026-27's Care Ecosystem Initiative: Addressing the Paradox of 'Volunteer' Care Workers

Updated 9 Mar 2026

Contents4

The Hindu - Opinion · 6 Mar 2026 · 2 min read
Prelims · Government schemes Mains · GS2 Governance High relevance

The Union Budget 2026-27 proposes training 1.5 lakh multiskilled caregivers under NSQF, while overlooking the formal recognition and fair compensation for existing ASHA and Anganwadi workers who form the backbone of India's care economy.

Key points

Budget Proposal: The Union Budget 2026-27 aims to build a 'strong care ecosystem' by training 1.5 lakh multiskilled caregivers in geriatric, core care, and allied skills through NSQF-aligned programmes.

Existing Workforce: Over five million women, including ASHA workers, Anganwadi workers, and mid-day meal workers, deliver essential public services but remain classified as 'volunteers' without formal contracts or benefits.

Structural Issues: The care economy relies on a feminized labor force, with women spending 140 minutes daily on caregiving compared to 74 minutes by men, as per the 2024 Time Use Survey.

Judicial Context: The Supreme Court's 2025 ruling in Dharam Singh & Anr. vs State of U.P. & Anr. stated that recurrent and central work cannot be treated as temporary indefinitely, providing a legal basis for formalizing these roles.

Economic Impact: The care sector's informal nature traps workers in low-paying, insecure jobs, exacerbating gender inequality and limiting economic growth potential.

Policy Gap: While the Budget focuses on skilling new caregivers, it lacks measures to integrate existing workers into formal employment frameworks with fair wages and benefits.

[GS2-Governance] The state's reliance on informal care workers highlights governance challenges in implementing welfare schemes effectively and equitably.

Way Forward: India should formalize ASHA and Anganwadi workers' roles, extend NSQF-aligned training to them, and implement the ILO's 5R Framework for Decent Care Work to ensure fair compensation and representation.

Key terms

ASHA Workers
Accredited Social Health Activists (ASHAs) are community health workers under the National Health Mission, tasked with facilitating healthcare access in rural areas. Their role is critical for maternal and child health but remains undervalued and underpaid.
Anganwadi Workers
Anganwadi workers are frontline workers under the Integrated Child Development Services (ICDS) scheme, providing nutrition, preschool education, and health services. Despite their essential role, they receive minimal honorariums and lack job security.
NSQF
The National Skills Qualification Framework (NSQF) is a competency-based framework that organizes qualifications according to levels of skills and knowledge. It aims to standardize skill development and improve employability across sectors.
ILO's 5R Framework
The International Labour Organization's 5R Framework for Decent Care Work emphasizes Recognition, Reduction, Redistribution, Reward, and Representation of care work. It advocates for fair wages, better working conditions, and policy inclusion for care workers.

Practice question

Critically examine the paradox of India's care economy as highlighted by the Budget 2026-27's Care Ecosystem Initiative, with special reference to the status of ASHA and Anganwadi workers. (250 words, 15 marks)

GS2 15 marks 250 words Mains

Key terms to include: NSQF ILO's 5R Framework ASHA Workers Anganwadi Workers Care Economy Dharam Singh Judgment Feminization of Labor Informalization

Answer framework

Introduction

Briefly introduce the care economy in India and mention the Budget 2026-27's initiative to train new caregivers while overlooking existing workers.

Structural Issues in Care Economy

Feminization of labor: Women dominate care work (140 vs 74 minutes daily by men)

Informalization: ASHA/Anganwadi workers classified as 'volunteers' without contracts

Economic impact: Low wages trap workers in poverty cycles

Policy Gaps in Budget Initiative

Focuses on skilling new workers (1.5 lakh NSQF-trained) but ignores existing workforce

Lacks formal employment frameworks for current workers despite Supreme Court's Dharam Singh judgment

Misses opportunity to implement ILO's 5R Framework

Governance Challenges

Reliance on informal workers affects scheme implementation quality

Contradiction between essential services and worker recognition

Need for integrated approach linking skilling with formalization

Conclusion

Suggest way forward: Formalize roles, extend NSQF training to existing workers, implement fair compensation, and adopt ILO framework for comprehensive care economy reform.

Fact check

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