Context:

• India’s welfare ecosystem is vast but fragmented, with multiple central and state schemes leading to duplication, inefficiencies, and access barriers.
• Election-bound states often announce populist welfare measures, but the real challenge is designing a unified, rights-based, and economically sustainable social security system leveraging the Digital India framework to ensure universal, efficient, and inclusive coverage.

Current Scenario of Social Security in India:

• Populist welfare trends:
  • Bihar recently increased pensions from ₹400 to ₹1,100 for elderly, widowed, and disabled citizens ahead of elections.
  • Similar welfare announcements are common globally and in India, providing short-term relief but lacking structural reform.
• Existing coverage and schemes:
  • Over 34 major social protection schemes, 24 pension schemes, and several independent state-level initiatives.
  • International Labour Organisation (ILO)-Phase II survey:
    • The ILO’s Director-General recently lauded India’s “cash and non-cash” social protection schemes.
    • Over 100 crore beneficiaries are covered cumulatively by central and state programmes.
  • ILO’s coverage estimates: The World Social Protection Report (2021) revised estimated India’s coverage from 24.4% to 48.8% after factoring in state-level schemes.
  • Central legislations: The Employees’ Provident Funds & Miscellaneous Provisions Act, Employees’ Compensation Act, ESIC Act, BOCW (Building and Other Construction Workers) Act, Maternity Benefit Act, etc.
  • Institutions: Like the Employees' Provident Fund Organisation (EPFO) (30 crore accounts, 8 crore active contributors) and Employees' State Insurance Corporation (ESIC) already deliver services at scale.

Challenges in the Current System:

• Fragmentation and duplication:
  • Overlapping registrations (e.g., E-Shram vs. EPFO).
  • States often rebrand existing schemes instead of creating new value.
• Beneficiary identification issues:
  • Scattered entitlements make access difficult.
  • Lack of interoperability between schemes.
• Consumption-oriented transfers: Cash transfers are rarely linked to capacity-building or economic empowerment.
• Fiscal constraints: Need for sustainable financing, as per G20 New Delhi Declaration commitment.

Reform Path - One Nation, One Social Security Governance:

• Global models:
  • Brazil’s ‘The Fome Zero’ programme: It brought in a Unified System of Social Assistance (SUAS) that regulates and organises the social assistance service network across the nation.
  • South Korea’s consolidation: Under institutions like the National Pension Service and the National Health Insurance Service.
• Proposed Indian model:
  • Integrate schemes under a federated, flexible, incentive-driven framework.
  • States add top-ups instead of duplicating central schemes.
  • Use EPFO’s UAN for routing cash transfers; part of transfers to be invested in PF, pension, and insurance.
  • Leverage Digital India Stack, Aspirational Districts Programme, and PM-Gati Shakti for efficient delivery.
  • Employment Linked Incentive Scheme via EPFO to create 3.5 crore jobs in 2 years.

Way Forward:

• Integration and interoperability: Build a centralised beneficiary database with cross-scheme linkages.
• Rights-based framework: Guarantee minimum social security for all, irrespective of political cycles.
• Productive transfers: Link welfare benefits to skill development, education, and employability.
• Political consensus: Achieve bipartisan support for a federated social security reform.

Conclusion:

• By 2047, adopting a “one government” welfare system can streamline India’s fragmented schemes into a unified, technology-driven social security network that ensures dignity, equity, and opportunity for all citizens.
• This transformation will be a key pillar in realising the vision of Viksit Bharat, where inclusive growth and economic resilience go hand in hand.