India’s Social Protection Coverage Doubles

Context

India has made remarkable progress in expanding social protection coverage, doubling it from 24.4% in 2021 to 48.8% in 2024. This achievement reflects the country’s commitment to ensuring social justice and improving the quality of life for its citizens, particularly those in vulnerable groups. Below is an in-depth analysis of this development.

Introduction to Social Protection

Social protection refers to measures designed to reduce poverty and vulnerability by promoting efficient labor markets, diminishing people’s exposure to risks, and enhancing their capacity to manage economic and social shocks. The International Labour Organization (ILO) defines social protection as encompassing benefits like healthcare, pensions, maternity assistance, unemployment benefits, and disability support financed through public investment or wage contributions.

Key Statistics and Achievements

• Coverage Expansion: India’s social protection coverage increased from 24.4% in 2021 to 48.8% in 2024, benefiting nearly half of the population.
• Population Impact: Approximately 920 million people (65% of India’s population) are covered by at least one social protection benefit, including cash and in-kind schemes.
• Global Recognition: India’s efforts contributed significantly to the global increase in social protection coverage, which rose by 5 percentage points.

Factors Behind the Expansion

• Labor Reforms: India consolidated 29 labor laws into four simplified labor codes aimed at universalizing wages, improving working conditions, and expanding social security. These reforms modernized workforce policies and facilitated greater inclusion of informal sector workers.
• e-Shram Portal: Launched as a centralized database for unorganized sector workers, the e-Shram portal registered over 300 million workers. It helps streamline access to welfare schemes and ensures targeted delivery of benefits.
• Government Schemes: India implemented Aadhaar-linked identifiers for major schemes such as:

• Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)
• Employees’ Provident Fund Organisation (EPFO)
• Employees State Insurance Scheme (ESIC)
• PM-POSHAN nutrition program

These initiatives collectively processed billions of records to identify unique beneficiaries.

• Food Security Measures: The government distributes free food grains to over 800 million people annually under its food subsidy program. Although not formally counted as social protection by international standards, these measures significantly enhance welfare outcomes.

Challenges in Implementation

• Informal Sector Dominance: Over 80% of India’s workforce operates in the informal sector without formal contracts or paid leave. Extending social protection to this group remains a major challenge.
• Underestimation of Coverage: The ILO primarily focuses on cash benefits while excluding in-kind benefits like food distribution and housing assistance. India is advocating for the inclusion of such measures to reflect a more comprehensive picture of its social protection efforts.
• Gig Economy Workers: With the rise of gig workers in India’s economy, there is growing demand for tailored social security measures for this segment. The government has announced plans to address this issue.

Future Prospects

• Reassessment by ILO: India is collaborating with the ILO for a reassessment of its social protection coverage, which could increase estimates from 48.8% to over 57%. This would provide a more accurate depiction of India’s achievements.
• Innovations for Informal Sector Workers: Strategies discussed during international seminars include formalizing informal employment and leveraging technology for efficient delivery of benefits. These efforts aim to bridge gaps in coverage and ensure equitable access for all workers.
• Expanding Health Security: India plans to further enhance health security measures, which already cover over 600 million individuals with free health insurance up to ₹5 lakh at more than 24,000 hospitals nationwide.

Conclusion

India’s doubling of social protection coverage marks a significant milestone in its journey toward inclusive development and social justice. By addressing challenges such as informal sector dominance and advocating for broader recognition of its welfare measures, India is setting an example for other nations striving to expand their social security frameworks. Continued reforms and innovations will be crucial in sustaining this momentum and achieving universal coverage in the coming years.

Source: HT

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