Overview of Social Protection Expansion
- India’s social protection coverage has doubled from 24.4% in 2021 to 48.8% in 2024, according to the ILO’s World Social Protection Report (2024-26).
- The Union Labour Ministry, in collaboration with the ILO, pooled data from 34 major Central schemes and identified 92 crore people receiving at least one form of social protection.
- Cash benefits cover 48.8% of the population, while additional in-kind benefits like food security and housing have not been fully accounted for in the ILO report.
Relevance : GS 2(Governance ,Social Issues, Welfare Schemes)
Historical Context & Challenges
1. Evolution of Social Protection in India
- Pre-Independence Phase: Welfare initiatives were largely employer-driven, covering only industrial workers under schemes like the Workmen’s Compensation Act, 1923.
- Post-Independence Reforms: Introduction of EPF (1952), ESI (1952), MGNREGA (2005), and expansion of Food Security through PDS, NFSA (2013).
- Labour Code Reforms (2020): Aimed at universalizing social security to gig workers and unorganized sectors.
2. Gaps in Coverage Before 2021
- Fragmented Implementation: Different social security schemes operated in silos, leading to duplication and inefficiencies.
- Low Awareness & Accessibility: Many eligible beneficiaries remained outside the safety net due to lack of awareness and documentation.
- Exclusion of Gig and Informal Workers: Unorganized workers (80% of India’s workforce) had limited coverage before the E-Shram initiative.
Implications and Future Prospects
1. Strengthening Universal Social Security
- Formalization of Labour Force: Expansion of ESIC to 15 more districts in Uttar Pradesh indicates a move towards universal health and employment security.
- Integration of State Schemes: Central data pooling will help reduce redundancy and improve beneficiary tracking.
2. Economic and Social Impact
- Poverty Reduction: Increased cash transfers improve consumption levels, reducing multidimensional poverty.
- Better Health and Productivity: Expansion of ESIC and Ayushman Bharat enhances workforce efficiency and reduces out-of-pocket expenditure.
- Rural and Urban Convergence: MGNREGA, food security, and urban employment schemes create a comprehensive safety net for diverse socio-economic groups.
3. Challenges and Policy Recommendations
- Addressing Underestimation by ILO: India must push for international recognition of its in-kind benefits and state-level social protection measures.
- Digital Inclusion & Aadhaar Integration: Ensure seamless delivery while safeguarding privacy concerns in data pooling initiatives.
- Expanding Gig Worker Coverage: Strengthen implementation of Social Security Code (2020) and E-Shram portal benefits.
