Social Protection in India: Bridging Gaps for Inclusive and Adequate Coverage

Global Comparison and India’s Rank

1. India’s Global Rank: India ranks 2nd globally in terms of social security coverage at 64.3% (94+ crore people) as per ILO 2025 data.
2. Rapid Progress: India’s coverage grew by 45 percentage points since 2015, showcasing one of the world’s fastest expansions in social protection inclusion.
3. Lag in Depth and Quality: While coverage is high, India lags behind OECD countries in terms of benefit adequacy, service quality, and scheme sustainability.
4. Brazil’s Model (Bolsa Familia): Brazil offers targeted cash transfers with strong conditionality and digital infrastructure, improving education and health outcomes.
5. China’s Universal Coverage Approach: China provides basic pensions and health care even in rural areas, with a focus on state-led implementation.
6. EU’s Comprehensive Social Insurance: European countries offer universal and contributory social insurance (pension, unemployment, maternity), ensuring adequacy and rights-based access.
7. Scope for India: India can learn from global best practices in universalisation, portability, funding models, and tech-driven delivery to strengthen its social protection net.

1. Low Awareness and Enrolment: A large section of informal and rural populations remain unaware of available social protection schemes, leading to under-enrolment.
2. Digital Divide: Limited internet access and low smartphone penetration in remote areas hinder digital registration and benefits delivery.
3. Financial Illiteracy: Lack of understanding about insurance, pensions, and savings mechanisms reduces participation in contributory schemes like PM-SYM and APY.
4. Portability Issues for Migrants: Migrant workers face difficulties in accessing benefits outside their home states due to the absence of seamless portability across regions.
5. Contribution Burden in Informal Sector: Irregular incomes in the informal sector make consistent contributions to pension or insurance schemes financially challenging.
6. Administrative and Documentation Gaps: Many eligible individuals lack proper documents (like Aadhaar, bank accounts), delaying or preventing enrolment.
7. Trust and Efficiency Deficits: Past experiences with delays or leakages in welfare delivery create scepticism among beneficiaries regarding scheme reliability.

Social Security as a Pillar of Inclusive Growth

1. Reduces Poverty and Inequality: Acts as a redistributive mechanism that narrows economic disparities and supports vulnerable communities.
2. Builds Human Capital: Improves health, education, and workforce productivity through secure income and service access.
3. Enhances Economic Stability: Acts as a shock absorber during pandemics, economic downturns, and climate-related crises.
4. Supports Labour Market Participation: Encourages workforce engagement, especially among women and informal workers.
5. Fosters Social Cohesion: Promotes trust, equity, and social justice, building a more stable and cohesive society.
6. Drives Sustainable Development: Integral to achieving the 2030 Agenda by linking growth with welfare and resilience.
7. Key to ‘New India’ Vision: Establishes a foundation for a dignified, productive, and inclusive nation, where no one is left behind.

Future Outlook and Way Forward

1. Target Universal Coverage by 2030: Align social protection reforms with SDG Target 1.3, aiming for universal access to basic income and health security.
2. Include Excluded Groups: Expand coverage to gig workers, urban poor, migrant labourers, and other vulnerable populations often left out of formal systems.
3. Boost Awareness: Launch focused campaigns on scheme awareness, especially in rural, tribal, and digitally excluded areas.
4. Ensure Portability: Enable inter-state portability of benefits and enrolment, especially for migrant workers, using platforms like e-SHRAM.
5. Strengthen Technology & Monitoring: Enhance real-time data systems, grievance redressal, and third-party audits for better implementation.
6. Improve Scheme Convergence: Ensure integration and coordination across welfare schemes to avoid duplication and improve outcomes.
7. Promote Financial & Digital Inclusion: Focus on improving access to banking, Aadhaar linkage, mobile platforms, and digital literacy.

Conclusion 

India’s remarkable progress in expanding social security coverage—from just 19% in 2015 to over 64% by 2025—marks a major milestone in its journey toward inclusive and equitable development. Through a broad spectrum of schemes like PM-SYM, Ayushman Bharat, MGNREGA, and PDS, the country has laid a strong foundation for income security, health protection, and basic welfare for its vulnerable populations. However, challenges such as inadequate awareness, digital divides, portability issues for migrants, and sustainability concerns in the informal sector continue to hinder the full realisation of this safety net.