India's Leap in Social Security Coverage

 

India's Leap in Social Security Coverage

India has been awarded the prestigious International Social Security Association (ISSA) Award 2025 for 'Outstanding Achievement in Social Security,' recognizing its journey from 19% coverage in 2015 to 64.3% in 2025, encompassing over 94 crore citizens.

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1. Why in the News?

At the World Social Security Forum (WSSF) 2025 in Kuala Lumpur, Union Minister Dr. Mansukh Mandaviya announced that India's social security coverage has expanded to 64.3% of its population, a massive increase from 19% in 2015. This achievement has earned India the ISSA Award 2025 and the highest vote share in the ISSA General Assembly.

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2. Key Terminology & Institutions

• Social Security: A system of government measures designed to provide protection against various economic and social risks, such as loss of income, illness, old age, unemployment, and disability.

• International Social Security Association (ISSA): A leading international organization that promotes excellence in social security administration. Its award is a global benchmark.

• e-Shram Portal: A National Digital Database for unorganized workers, acting as a "One-Stop Solution" to connect them with various social welfare schemes.

• National Career Service (NCS) Portal: A digital platform that links job seekers with employers and is integrated with e-Shram to ensure social security portability.

• EPFO (Employees' Provident Fund Organisation): Provides retirement benefits (provident fund, pension) to organized sector employees.

• ESIC (Employees' State Insurance Corporation): Provides health insurance and medical care to organized sector workers.

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3. The Scale of India's Achievement

Parameter	2015	2025	Significance
Social Security Coverage	19%	64.3%	A ~45 percentage point increase, one of the fastest expansions globally.
Number of Citizens Covered	Not specified	Over 94 Crore (940 million)	Represents a massive scale of inclusion.
Global Recognition	-	ISSA Award 2025	Places India among global leaders in social protection.

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4. Drivers of India's Success: The "How"

The expansion is attributed to a multi-pronged strategy focused on Digital Public Infrastructure (DPI) and last-mile delivery.

1. Philosophy of Antyodaya: The guiding principle of "empowering the last person in the line" has directed policy focus towards the most vulnerable sections.

2. Digital Public Infrastructure (DPI): The backbone of this expansion. Key platforms include:

   • e-Shram Portal: Registered over 31 crore unorganized workers, connecting them directly to welfare schemes. This formalizes the informal sector.

   • Integration of Portals: Linking e-Shram with NCS ensures that a worker's social security benefits are portable even if they change jobs or enter the formal workforce. This is a revolutionary step.

3. Strengthening Traditional Institutions: Reforms and technological upgrades in EPFO and ESIC have improved the delivery of pensions, provident funds, and health insurance to the organized sector.

4. Comprehensive Policy Overhaul: A holistic approach that combines financial access (Jan Dhan accounts), direct benefit transfers (DBT), skilling, and self-employment schemes under a unified social security net.

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5. Significance and Implications

• Reduction in Vulnerability: Provides a safety net for millions against poverty, illness, and old age, thereby reducing their economic vulnerability.

• Formalization of the Economy: Bringing unorganized workers into a digital database (e-Shram) is a crucial step towards formalizing India's vast informal economy.

• Enhanced Human Development: Access to health insurance (via ESIC, Ayushman Bharat) and pensions directly contributes to better health outcomes and dignified aging, boosting India's Human Development Index (HDI).

• Global Leadership: This achievement positions India as a model for other developing countries seeking to achieve universal social protection in the digital age.

• Dignity of Labor: Recognizing and registering unorganized workers provides them with a formal identity and access to rights and benefits.

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6. Probable UPSC Questions

A. Prelims (Factual)

1. The 'e-Shram Portal', recently in the news, is primarily associated with:
   a) Digital registration of private companies.
   b) Creating a national database for unorganized workers.
   c) Online filing of income tax returns.
   d) Registration of agricultural land holdings.
   Answer: (b) Creating a national database for unorganized workers.

2. India recently received the International Social Security Association (ISSA) Award 2025 for its achievement in expanding social security coverage. Which ministry received this award on behalf of India?
   a) Ministry of Finance
   b) Ministry of Social Justice and Empowerment
   c) Ministry of Labour and Employment
   d) Ministry of Rural Development
   Answer: (c) Ministry of Labour and Employment

B. Mains GS (Analytical)

GS Paper II (Governance, Social Justice)

1. "India's journey to achieving 64.3% social security coverage is a story of digital innovation guided by the philosophy of Antyodaya." Elucidate.

2. The integration of the e-Shram and National Career Service (NCS) portals is a transformative step for the Indian workforce. Discuss its significance.

GS Paper III (Economy)

1. How does the expansion of social security coverage contribute to the formalization of the Indian economy? Analyze with suitable examples.

C. Interview

• "While the expansion of coverage is impressive, what are the challenges in ensuring the quality and adequacy of these social security benefits for the poorest?"

• "How can India sustain the financing of such a large-scale social security net in the long run?"

• "What lessons can other developing countries learn from India's model of using digital infrastructure for social protection?"