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Indian Express
7 days ago
- Business
- Indian Express
Why India needs a unified welfare state
Election-bound Bihar recently announced a generous pension hike from Rs 400 to Rs 1,100 for its elderly, widowed, and disabled citizens. Come election season, such announcements are not just expected but eagerly anticipated. The trend of populist welfare is global, and India is no exception. Though these political philanthropies provide short-term income support, they also raise a fundamental question: Should India remain trapped in fragmented, populist welfare politics, or is it time to build a unified, rights-based, and economically sustainable social security system that fuels the economy? Can the 'Digital India' ecosystem be leveraged to deliver smart social security governance that empowers and uplifts? The answer is important for the future of over half of India's population, who are under the age of 28 and aspire to live a developed-nation dream and the elderly who will need support by 2047. The International Labour Organisation's Director-General recently lauded India's 'cash and non-cash' social protection schemes. The ongoing ILO-Phase II survey for India reveals that its schemes reach over 100 crore beneficiaries. This milestone is the cumulative result of numerous schemes launched by both the central and state governments. According to one estimate, there are over 34 major social protection schemes, 24 pension schemes and several independent welfare initiatives by states. The ILO's World Social Protection Report (2021) initially estimated India's coverage at 24.4 per cent, only later adjusting it to 48.8 per cent after the government highlighted the extent of state-level programmes. If even the ILO gets messed up with data, imagine what citizens face when looking for their scattered entitlements. The pressing challenge is optimising scattered schemes. This includes eliminating duplications, identifying the right beneficiaries, and investing in capacity building and market-ready skill sets for our working population to grow the pie, rather than compete over its pieces. A related challenge is the need to reimagine direct transfers not as isolated, consumptive payouts, but as self-multiplying instruments, where one entitlement has the potential to unlock access to others. For example, could pension benefits be extended to include education allowances for grandchildren of the elderly? The G20 New Delhi Declaration calls for 'sustainably financed universal social protection coverage'. 'One Nation, One Social Security governance' presents a promising path forward. It can address current inefficiencies to make the best of the scarce fiscal resources, while sparing citizens the pain of running between various units of the government. For instance, E-Shram registrations are meant for unorganised workers, and EPFO registrations largely cover formal employment. They compete with each other and create problematic boundaries when there is an overlap. Specified eligibility conditions and lack of interoperability often deny simple benefits envisaged by the legislators. A closer look at many state government schemes shows they often repackage existing benefits under new names, offering little differentiated value. In its report, 'Successful Social Protection Floor Experiences' (2011), the ILO found several examples to illustrate how an integrated national strategy and framework were useful to provide universal social assistance and develop basic capabilities of citizens. Brazil's 'The Fome Zero' programme brought in a Unified System of Social Assistance (SUAS) that regulates and organises the social assistance service network in all 26 states, the federal district and 5,564 municipalities. South Korea faced similar challenges in the 1990s and responded by consolidating welfare programmes under institutions like the National Pension Service and the National Health Insurance Service. A similar transition in India is needed. A 'one government' approach moves away from silos, shifting the focus to collective outcomes. It is time to put the Digital India Stack, Aspirational Districts Programme to best use and build on the experiences from programmes like PM-Gati Shakti. Central legislation like the Employees' Provident Funds & Miscellaneous Provisions Act, Employees' Compensation Act, ESIC Act, BOCW, and Maternity Benefit Act provides security to working segments across federal boundaries. Our Constitution empowers states to frame similar schemes in their own spheres. The EPFO currently maintains around 30 crore accounts, with some 8 crore actively contributing. The Cabinet, on July 1, approved the rollout of the Employment Linked Incentive Scheme to enhance job creation, employability and social security, targeting about 3.5 crore jobs in two years. It has chosen EPFO as the vehicle, trusting its capacity at scale. Last financial year, EPFO settled more than 5 crore claims. ESIC is another pillar that delivers at scale. These institutions can be strengthened to transition to a 'one government' welfare system, where states are partners in adding value as a top-up rather than reinventing the wheel. Our collective resolve to be 'Viksit Bharat' by 2047 depends upon several factors. One of them is financial security in old age. Cash transfers planned by any unit of the government can be routed through the UAN of the EPFO. A certain percentage of such 'transfers' can be used for Provident Fund, pension and insurance. As a caution, any move towards a unified social security governance model must be federated, flexible, and incentive-driven, with the autonomy to factor in unique social realities. Through bold political consensus, this transition can become one of India's most transformative governance reforms since Independence. Prakash is Regional PF Commissioner (Cochin), and Tiwari is Regional Labour Commissioner (Thiruvananthapuram). Views are personal
Daily Tribune
02-07-2025
- Business
- Daily Tribune
India's Remarkable Strides in Social Protection: A Global Benchmark
India's journey in expanding its social protection safety net stands as a testament to its commitment to inclusive growth and welfare. From covering just 24.4% of its population in 2019, India has rapidly escalated its social security reach to an impressive 64.3% by 2025. This makes it one of the fastest global expansions in social protection, a monumental achievement now duly recognized and reflected in the International Labour Organisation's (ILO) ILOSTAT database. This expanded coverage now benefits over 940 million people, a result of strategic central schemes and innovative, targeted state-level programs, particularly those focused on women and pensioners. The ILO's World Social Protection Report (WSPR) 2024-26 provides further insights into India's success. The Targeted Public Distribution System (TPDS) is highlighted as one of the world's largest in-kind social assistance programs, legally guaranteeing food security for nearly 800 million individuals. This underscores TPDS's central role in India's broader social protection framework, ensuring essential food supplies reach a vast segment of the population. Beyond mere food distribution, the report also acknowledges the program's proactive efforts to combat micro-nutrient deficiencies through initiatives like the distribution of fortified rice and the integration of millets into the public food system. A notable finding from the WSPR 2024-26 is that young employed women under 30, including those in self-employment, benefit from higher levels of social security coverage compared to their male counterparts in India. Furthermore, India stands out as one of the few nations providing universal, tax-financed maternity benefits, a significant stride in maternity protection. India's robust social protection system is a culmination of various impactful welfare programs designed to provide financial security, healthcare, and food assistance. These initiatives have been instrumental in enhancing livelihoods and alleviating poverty nationwide. Some of the cornerstone schemes include: Ayushman Bharat: As of March 26, 2025, the Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) has issued nearly 400 million Ayushman Cards, offering free health coverage of up to 0.5 million per family across 24,810 empaneled hospitals. Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY): This vital scheme, launched during the COVID-19 pandemic, provides free food grains to vulnerable populations. By December 2024, it reached over 806 million beneficiaries, nearing its ambitious target. eShram Portal: Launched on August 26, 2021, this portal has created a National Database of Unorganised Workers (NDUW), providing a Universal Account Number (UAN) for enhanced social security. By March 3, 2025, over 306 million unorganised workers had registered, with women constituting 53.68% of them. Atal Pension Yojana (APY): Launched in 2015, APY aims for universal social security, especially for the poor and unorganised sector workers. Alongside PMJJBY and PMSBY, it has significantly strengthened the pension system, with 72.5 million beneficiaries enrolled by December 31, 2024, accumulating a corpus of over 433 billion. Poverty Reduction: The past decade has seen a remarkable achievement: 248 million people have escaped multi-dimensional poverty, underscoring the profound impact of these comprehensive social security measures. To further refine its understanding of social security coverage, the Ministry of Labour & Employment launched Phase 01 of India's Social Protection Data Pooling Exercise on March 19, 2025. This ambitious initiative seeks to consolidate data from various schemes, offering a holistic view of India's welfare landscape. The initial phase includes ten key states: Uttar Pradesh, Rajasthan, Maharashtra, Madhya Pradesh, Tamil Nadu, Odisha, Andhra Pradesh, Telangana, Karnataka, and Gujarat. Building on these efforts, India has already processed over 2 billion records using encrypted Aadhaar as a unique identifier across 34 major central schemes, including Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Employees' Provident Fund Organisation (EPFO), Employees' State Insurance Corporation (ESIC), Atal Pension Yojana (APY), and Pradhan Mantri Poshan Shakti Nirman (PM POSHAN). The Indian government's proactive engagement with the ILO, including recent bilateral discussions in Geneva, aims to ensure these extensive welfare measures are accurately reflected in future global assessments. The ILO has acknowledged housing and food security as part of the broader United Nations Sustainable Development Goals and has agreed to consider such schemes in its evaluations. With continued strong collaboration between the Centre, State Governments, and the ILO, India is poised to further refine its social protection framework and present an even more accurate picture of its welfare reach to the world. As a nation, India also shares strong bilateral ties with Bahrain, and these achievements will undoubtedly open more avenues for cooperation between our two countries.
Time of India
11-06-2025
- Business
- Time of India
Social security cover up from 24% in 2019 to 64%: ILO report
NEW DELHI: India now provides social protection to around 94 crore citizens, with coverage rising to 64.3% of the population from 24.4% in 2019, according to International Labour Organisation's World Social Protection Report. While asserting that India now ranks second globally in terms of social security access, labour minister Mansukh Mandaviya said, "There are millions more who are receiving non-cash coverage through various food and health security schemes." At International Labour Conference in Geneva, the Union minister said a massive exercise is under way to register gig workers so that targeted benefits and social protection can be offered to them. Have acted to bring gig workers into mainstream: Govt ILO periodically conducts assessments among its member countries to evaluate social security coverage, which includes nine categories - health protection, sickness benefit through earnings replacement, old age pension, unemployment benefit, employment injury benefit, family and child benefits, maternity benefits, disability benefits and survivors' benefits. "India has taken concrete steps to bring gig and platform workers into the mainstream. With India's gig workforce projected to reach 23.5 million by 2030, we must preserve the flexibility that defines this sector. India believes in a measured, evidence-based approach to standard-setting in a form that preserves the innovative character of platform work while progressively enhancing working conditions," labour minister Mansukh Mandaviya said. While social security access expanded, India also figured prominently in another report that estimated that globally, there were 138 million still trapped in child labour, including 54 million in hazardous work. India remained among countries with a significant burden. Over 10 million children aged 5-14 were officially estimated to be in labour, Unicef and ILO report said. Activists believe the actual number could be higher, particularly in informal sectors such as agriculture, construction, family-run enterprises, and domestic work. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Observer
19-04-2025
- Health
- Observer
Oman committed to social protection inclusion: ISSA
Muscat: In a rapidly changing world shaped by demographic shifts, social protection has emerged as a vital safety net for societies facing modern-day risks. While progress is evident in expanding coverage, nearly 3.8 billion people remain completely unprotected, according to the ILO's World Social Protection Report 2024–2026. In an interview with the Observer, Dr Mohammad Azman, President of the International Social Security Association (ISSA), said the world is witnessing a dual reality in the field of social protection. 'Systems have evolved in response to global crises, but the pace of expansion remains too slow. At this rate, achieving universal coverage could take decades. This is an issue of global equity. Every unprotected individual weakens the global safety net and leaves us more vulnerable to future shocks,' he said. 'Youth unemployment is especially alarming — about 13 per cent of young people globally are unemployed, and we'll need to create 600 million new jobs by 2030 to match the growing workforce,' he added, noting that chronic health conditions now account for 74 per cent of all global deaths, placing increasing strain on health and social systems. At the same time, rising public expectations require social protection institutions to deliver better services — faster, more transparently, and with higher quality. 'The future demands systems that are resilient, inclusive, and innovative,' Dr Azman said, acknowledging that the existence of a gap between social protection systems in developing and developed countries. However, he stresses that this disparity is not purely economic. 'Coverage rates aren't solely dependent on development levels. They're shaped by policy choices and institutional capacities. Many developing countries ave made major strides — especially in health coverage — while some developed nations still struggle with gaps in coverage and benefit adequacy. What's needed is sustained investment, smart policymaking, and the sharing of best practices globally. Stronger protection anywhere benefits everyone," he said. Dr Azman said, 'What distinguishes Oman is its bold commitment to inclusion. They've extended coverage to groups often left out — self-employed workers, entrepreneurs, those in informal sectors. It's a forward-looking response to today's labour market realities.' He also praises Oman's integration of multiple pension schemes under a single Social Protection Fund (SPF), calling it a strategic move toward improved governance and sustainability. 'The use of digital systems and integrated data management has made services more accessible and transparent. Oman is building a system that's responsive, people-centered, and ready for the future." On the relationship between ISSA and Oman, Dr Azman said Oman actively participates in ISSA's technical commissions, regularly shares good practices, and has aligned its reforms with international standards. 'This collaboration has been instrumental in supporting Oman's bold reforms,' he notes. 'The 2023 ISSA Good Practice Award for Asia and the Pacific — awarded to Oman — was a well-deserved recognition of this achievement." When asked how Oman can benefit from global experiences without repeating others' mistakes, Dr said, "Learning from others doesn't mean copying them.' He encourages Oman to study what has worked well — such as coverage expansion, governance improvements, and financial sustainability — while avoiding complex, costly systems that may not fit the local context.
Gulf Today
26-02-2025
- Politics
- Gulf Today
Half of world population covered by social protection for first time, says ILO
More than half of the world's population is covered by social protection for the first time, the Director-General of the United Nations International Labour Organisation (ILO) Gilbert F Houngbo has said. In a meeting in New Delhi with Mansukh Mandaviya, India's Minister of Labour and Employment, Houngbo said, "This welcome progress is dampened by the fact that 3.8 billion people worldwide are still entirely unprotected from life's challenges and the impacts of climate change.' He noted India's progress in enhancing social protection coverage, noting, "The ILO's latest World Social Protection Report (WSPR) acknowledged the doubling of India's social protection coverage from 24.4 percent to 48.8 percent in 2024.' Houngbo was in India for the Regional Dialogue on Social Justice, a UN platform for advancing social justice, decent work, and inclusive economic growth. India represents the Asia-Pacific region in the ILO's Coordinating Group of the Global Coalition for Social Justice. Mandaviya underscored India's dedication to "quality employment, skills development, and social protection as pillars of social justice, aligning with the government's vision to make India a developed country by 2047, the centennial of its independence.' India is a founding member of the ILO and has been a permanent member of the ILO Governing Body since 1922. WAM
