India’s social security system has evolved to address the needs of its vast and diverse population. Recent reforms aim to extend protection to vulnerable groups, especially workers in the unorganised sector. Despite progress, challenges like limited coverage, awareness gaps, and administrative inefficiencies remain. The government continues to introduce schemes to strengthen social insurance and promote inclusive growth.
Evolution of Social Security
Social security emerged from welfare state ideas, moving beyond mere law and order. It provides protection against risks such as sickness, old age, maternity, and death. Unlike social insurance, which offers partial protection, social security takes a broader approach. It aims to prevent hardship and redistribute income fairly. In India, social security is vital due to widespread poverty and informal employment.
Key Social Security Schemes in India
Several flagship schemes target different vulnerable groups. The Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM) offers pensions to unorganised workers. Atal Pension Yojana (APY) covers citizens aged 18-40 voluntarily. National Social Assistance Programme (NSAP) supports elderly, widows, and disabled below the poverty line. Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) provides health insurance for poor families. These programmes aim to reduce poverty and promote financial security.
Challenges in Coverage and Awareness
Only about 7.5% of India’s workforce receives regular social security benefits. Most informal workers remain outside the system. Awareness about schemes is low, especially in rural areas. Complex procedures and lack of financial literacy hinder enrolment. This exclusion deepens inequality and vulnerability to economic shocks.
Financial and Administrative Issues
Affordability is a major barrier for low-income individuals. Premiums for insurance can be costly without subsidies. Government initiatives like AB-PMJAY subsidise health coverage but face sustainability concerns. Administrative inefficiencies cause delays in claims and beneficiary identification. Corruption and fund leakages further weaken programme impact. Digital divides limit access to online services, especially in rural regions.
Government Initiatives and Reforms
The Pradhan Mantri Jan Dhan Yojana promotes financial inclusion for the underprivileged. Pension schemes like APY encourage savings among informal workers. Efforts to integrate fragmented social security schemes are underway. Technology adoption aims to streamline processes and improve transparency. However, effective implementation and adequate funding remain critical for success.
Need for a Comprehensive Approach
A unified social security framework is essential to cover all citizens effectively. This includes financial protection, healthcare access, and risk prevention. Simplifying enrolment and enhancing beneficiary identification can increase reach. Strengthening social insurance will boost labour productivity and reduce poverty. Policymakers must prioritise vulnerable populations and leverage technology for sustainability.
Questions for UPSC:
- Critically analyse the challenges faced by India’s social security system in extending coverage to the informal sector workers.
- Explain the role of technology in improving the delivery of social insurance schemes in India and the limitations posed by the digital divide.
- What are the key features of the welfare state concept? How does social security contribute to achieving inclusive economic growth?
- Comment on the importance of financial inclusion in strengthening social security systems, with suitable examples from India’s recent initiatives.
