INDIA’S EXPANDING SOCIAL PROTECTION – LEGAL IMPLICATIONS, POLICY INSIGHTS & WELFARE IMPACT

by | Mar 30, 2025

India's growing social security coverage with beneficiaries of welfare schemes.

India’s social protection coverage reaches 48.8% in 2024, benefiting millions under key welfare schemes.

Introduction

India’s social protection framework has undergone a remarkable transformation, with coverage 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 development highlights the government’s strategic expansion of welfare initiatives, ensuring greater economic security, healthcare access, and financial support for millions.

 

PIB-India's growing social security coverage with beneficiaries of welfare schemes.

PIB-India’s social protection coverage reaches 48.8% in 2024, benefiting millions under key welfare schemes.

The latest edition of WSPR underscores the significance of universal social protection for climate action and a just transition. It introduces trend data for the first time, offering a dynamic perspective on global and regional advancements in social security. However, the ILO’s assessment does not fully capture India’s extensive welfare programs, necessitating a more refined evaluation.

Recent Issue & Key Facts

Key Highlights from WSPR 2024-26:

  • Social Protection Coverage: Increased to 48.8% in 2024 from 24.4% in 2021.
  • Beneficiaries: Nearly 920 million people (65% of the population) covered by at least one welfare scheme.
  • Policy Influence: India contributed to a 5% rise in global social protection coverage.
  • Regional Companion Report: Provides deeper insights into Asia-Pacific social security trends.

Despite these achievements, gaps persist in data representation. The ILO does not fully consider India’s in-kind benefits (food security, housing, employment programs) or state-administered schemes, which could further elevate actual coverage figures.

Applicable Laws & Legal Provisions

India’s social protection framework operates under a blend of constitutional mandates and statutory enactments:

1. Constitutional Mandates:

  • Article 21 Right to Life and Personal Liberty (includes right to health, livelihood, and shelter).
  • Article 41 – Right to public assistance in cases of unemployment, old age, sickness, and disability.
  • Directive Principles of State Policy (DPSP) – Obligates the state to provide a social security framework.

2. Key Social Security Laws:

  • Code on Social Security, 2020 – Unifies various welfare legislations, including EPFO, ESIC, and unorganized sector benefits.
  • The Unorganised Workers’ Social Security Act, 2008 – Provides welfare schemes for informal sector workers.
  • The Employees’ State Insurance Act, 1948 – Ensures medical benefits and financial protection for employees.
  • The National Food Security Act, 2013 – Guarantees food security through subsidized grains.

Rights, Responsibilities & Legal Safeguards

India’s social security framework ensures that beneficiaries, government agencies, and private sector employers adhere to structured responsibilities:

1. Beneficiaries’ Rights:

  • Right to free healthcare (Ayushman Bharat, ESIC benefits).
  • Right to food security (PMGKAY, NFSA, Mid-Day Meal Scheme).
  • Right to financial protection (Atal Pension Yojana, PMJJBY, PMSBY).
  • Right to employment security (MGNREGA, eShram registration).

2. Government’s Responsibilities:

  • Ensure universal access to social security schemes.
  • Facilitate transparent implementation via digital platforms like eShram.
  • Strengthen inter-state coordination for migrant and informal workers.
  • Periodically update policies based on economic trends and climate action needs.

3. Employer & Private Sector Responsibilities:

  • Compliance with EPFO & ESIC regulations.
  • Contribution to employees’ social security funds.
  • Mandatory registration of unorganised sector workers on eShram portal.

Analysis 

India’s advancements in social protection underscore a significant policy shift toward inclusivity and data-driven governance. The country’s ability to cover 920 million people under various schemes reflects a strong commitment to welfare expansion. However, critical challenges remain:

Strengths:

  • Widespread Coverage: Government efforts have lifted 24.8 crore people out of multidimensional poverty.
  • Digital Integration: eShram and Aadhaar-linked welfare tracking enhance efficiency and accessibility.
  • Health Security: Ayushman Bharat has empanelled 24,810 hospitals, ensuring nationwide reach.

Challenges:

  • Data Discrepancies: The ILO’s estimate of 48.8% does not include all state-level and in-kind benefits.
  • Informal Sector Coverage: Many unorganized workers remain unregistered or unaware of available benefits.
  • Financial Sustainability: Expanding social security requires balancing budget allocations and economic growth.

India’s Social Protection Data Pooling Exercise aims to bridge these gaps by consolidating 200 crore+ records across 34 major schemes. This initiative will likely result in a more accurate representation of India’s true social security coverage in future ILO reports.

Conclusion

India’s ongoing commitment to boosting its social safety system is indicative of a forward-thinking strategy for reducing poverty and ensuring economic stability. Ayushman Bharat, PMGKAY, and eShram are just a few of the government’s programs that have increased coverage and raised millions of people’s standard of living.

A key initiative in improving welfare policy and guaranteeing thorough evaluations is the Social Protection Data Pooling Exercise. India may significantly improve its social security system and become a model for welfare expansion worldwide with sustained cooperation between the ILO, the federal government, and state governments.

SOURCE – PIB

 

Written By Nancy Sharma

I am Nancy Mahavir Sharma, a passionate legal writer and a judicial service aspirant who is interested in legal researching and writing. I have completed Latin Legum Magister degree. I have been writing from past few years and I am excited to share my legal thoughts and opinions here. I believe that everyone has the potential to make a difference.

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