A comprehensive data analysis by India’s Union Labour Ministry, in collaboration with the International Labour Organization (ILO), revealed advancements in social protection coverage. The report indicated that 65% of India’s population, approximately 920 million people, now benefit from at least one form of social protection. This marks a substantial increase from 24.4% in 2021, with 48.8% of individuals receiving cash benefits.
Data Pooling Exercise Overview
The data pooling exercise involved processing over 200 crore records to identify unique beneficiaries. This was achieved by using encrypted Aadhaar data across 34 major Central schemes. These schemes include the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Employees Provident Fund (EPF), and Employees State Insurance (ESI). The results reflect a more inclusive understanding of social protection in India.
ILO’s World Social Protection Report
According to the ILO’s World Social Protection Report (WSPR) 2024-26, India’s social protection coverage has doubled. However, Union Labour Minister Mansukh Mandaviya noted that the ILO’s assessment might underestimate the actual coverage. He pointed out that the report does not fully account for in-kind benefits like food security and housing. Additionally, state-administered schemes were not included in the assessment.
Collaboration with State Governments
The Ministry of Labour is actively working with State Governments and the ILO to enhance data accuracy. This collaboration aims to provide a comprehensive picture of social protection coverage across India. State Labour Departments are responsible for compiling and sharing state-specific data with the central government for verification and consolidation.
Expansion of Employees’ State Insurance Corporation
In development, the Employees’ State Insurance Corporation (ESIC) expanded its coverage in Uttar Pradesh by adding 15 districts to the ESI Scheme. This initiative aims to boost social security for workers in the state. With this expansion, 74 out of 75 districts in Uttar Pradesh are now included under the ESI Scheme, enhancing access to social protection for a larger workforce.
Future Prospects of Social Protection in India
The ongoing efforts to improve social protection coverage in India signal a commitment to enhancing welfare for all citizens. The anticipated inclusion of additional benefits and state schemes is expected to further increase the actual coverage figures. This focus on comprehensive data collection and analysis will play a critical role in shaping future policies.
Questions for UPSC:
- Critically discuss the role of social protection in economic development.
- Analyse the impact of Aadhaar on social welfare schemes in India.
- Estimate the significance of state collaboration in enhancing social protection coverage.
- Examine the challenges faced in implementing social protection schemes in rural areas.
