India’s Social Security Coverage Doubles

27 Mar India’s Social Security Coverage Doubles

This article covers “Daily Current Affairs” and the Topic of  India’s Social Security Coverage Doubles.

SYLLABUS MAPPING:

GS-2-Social Issues- India’s Social Security Coverage Doubles

FOR PRELIMS

What is social security? Why is it important?

FOR MAINS

What are the major challenges in providing social security to unorganised sector workers?

Why in the News? 

India’s social protection coverage has seen a remarkable rise, doubling from 24.4% in 2021 to 48.8% in 2024, as per the International Labour Organization’s (ILO) World Social Protection Report (WSPR) 2024-26. This significant expansion is attributed to key government initiatives that have broadened access to health insurance, pensions, and employment support for millions. According to the Ministry of Labour and Employment, nearly 920 million people (65% of the population) are now covered by at least one form of social protection, marking a major milestone in India’s welfare landscape. This progress has also contributed to a 5-percentage point increase in global social protection coverage, highlighting India’s role in shaping international welfare outcomes.

Social Security Coverage in India 

The World Social Protection Report is a comprehensive assessment published periodically by the International Labour Organization (ILO), a specialised agency of the United Nations dedicated to labour rights and social justice. The report evaluates social protection systems globally, examining their coverage, effectiveness, and progress in ensuring social security for diverse populations. By offering a detailed analysis of policies and trends, it serves as a key resource for governments, policymakers, and researchers working towards stronger and more inclusive welfare systems.

The 2024–26 edition of the report is centred on universal social protection for climate action and a just transition. For the first time, it incorporates trend data, providing a more dynamic perspective on global progress. It presents an extensive set of global, regional, and country-level statistics on social protection coverage, benefits provided, and public expenditure. Additionally, a regional companion report for Asia and the Pacific supplements the global findings by offering a deeper analysis of social protection developments in the region. This companion report highlights key challenges, priorities, and the intersection of social protection and climate action, considering the unique socio-economic and environmental conditions of Asia and the Pacific.

Expanding social security 

Importance of Social Security 

1. Financial Protection Against Uncertainties: Provides financial assistance during retirement, unemployment, disability, or illness. Helps individuals and families sustain their livelihoods in difficult times.
2. Poverty Reduction and Economic Stability: Protects vulnerable populations from falling into extreme poverty. Encourages economic stability by ensuring basic income security.
3. Access to Quality Healthcare: Reduces financial burden on families by covering medical expenses. Government schemes like Ayushman Bharat provide free health coverage to millions.
4. Food Security for Vulnerable Populations: Ensures access to essential nutrition through programs like Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). Reduces malnutrition and improves overall public health.
5. Empowerment of Unorganised Workers: Initiatives like EShram Portal provide social security coverage to unorganised workers. Ensures protection and benefits for daily wage earners, gig workers, and self-employed individuals.
6. Encourages Savings and Retirement Planning: Schemes like Atal Pension Yojana (APY) and Employees’ Provident Fund Organisation (EPFO) help people save for the future. Ensures financial independence in old age.
7. Promotes Inclusive Growth and Development: Helps bridge the gap between different socio-economic groups.Ensures that all citizens, regardless of income level, have access to essential services.
8. Strengthens National Productivity: A healthy and financially secure population contributes to a stronger economy. Reduces dependency on government aid and promotes self-sufficiency.
9. International Recognition and Development Goals: Aligns with United Nations Sustainable Development Goals (SDGs), focusing on poverty reduction, healthcare, and decent work.
Strengthens India’s position as a socially responsible and progressive nation.

Issue related to social security In India 

1. Limited Coverage & Exclusion Errors: Many unorganised workers, migrant labourers, and daily wage earners lack access to formal social security due to inadequate documentation and identification issues.
2. Fragmented Implementation: Multiple schemes under different ministries create inefficiencies, duplication, and difficulties in tracking beneficiaries due to a lack of centralized data.
3. Financial Constraints: Insufficient funding and delayed disbursements lead to inadequate benefits and hinder the effective implementation of welfare programs.
4. Inadequate Pension & Insurance Coverage: Many informal workers lack pension (EPFO, APY) and insurance (PMJJBY, PMSBY) coverage due to low awareness and accessibility.
5. Challenges in eShram & Aadhaar Integration: Digital illiteracy, lack of internet access, and Aadhaar authentication issues prevent many unorganised workers from registering and availing benefits.
6. Corruption & Leakages: Middlemen, bureaucratic delays, and ghost beneficiaries cause fund leakages in schemes like MGNREGA and food distribution programs.
7. Inadequate Support for Migrant Workers: Limited portability of welfare benefits across states restricts migrant workers’ access to ration, healthcare, and employment schemes despite ONORC.
8. Low Awareness & Digital Divide: Many, especially in rural areas, remain unaware of entitlements due to digital illiteracy, language barriers, and poor access to technology.

Way forward 

Conclusion

India’s strides in expanding social protection reflect a strong commitment to inclusive welfare and economic security. The doubling of coverage, as highlighted in the International Labour Organization’s World Social Protection Report 2024–26, underscores the impact of key initiatives such as Ayushman Bharat, PMGKAY, and the eShram portal in ensuring financial stability, healthcare, and food security for millions. The launch of the Social Protection Data Pooling Exercise further strengthens these efforts by enhancing data-driven policymaking and addressing gaps in existing assessments. As India continues to refine its social security framework in collaboration with the ILO, its approach serves as a model for balancing welfare expansion with economic growth.

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