Lalit Gargg
The true measure of a nation’s progress cannot be determined solely by its economic growth rate, massive industrial projects, technological advancements, foreign investment, or rising per capita income. The real significance of development lies in ensuring that even the person standing on the lowest rung of society is protected against life’s uncertainties; that workers have confidence in their future; that old age does not become synonymous with deprivation; and that illness does not push an entire family into the abyss of financial distress. Social security is the foundation of such humane development. It is not merely a system of government assistance but a fundamental pillar of human dignity, self-confidence, economic stability, and social justice. It is upon this foundation that a strong, equitable, and inclusive nation can be built. Under the leadership of Prime Minister Narendra Modi, the Union Government has, in recent years, taken several steps to broaden the reach of social security through an expansion of welfare schemes. These initiatives have helped connect crores of people with various forms of financial, healthcare, food, and social assistance. Nevertheless, given the changing economic landscape and the needs of India’s vast workforce, much more remains to be done.
According to the International Labour Organization’s (ILO) 2026 report, the coverage of social protection in India has increased from 19 per cent in 2015 to 64.3 per cent, encompassing more than 940 million citizens. This expansion indicates that social protection has become an important component of the country’s development priorities. However, the success of social security cannot be assessed merely by counting the number of beneficiaries. The more fundamental questions are: How many people receive adequate assistance when they need it most? How many families are able to recover from the crises of illness and unemployment? And how many workers can look forward to a dignified life in their old age? Alongside the wider reach of welfare schemes, their adequacy, quality, and continuity are equally important.
The significance of social security is particularly pronounced in a vast and diverse country like India, where a substantial proportion of the workforce is engaged in the informal sector. According to available labour-related estimates, approximately 87 per cent of the country’s workforce belongs to the informal sector. Agricultural labourers, construction workers, domestic workers, street vendors, small shopkeepers, daily-wage earners, and people engaged in various service occupations keep the wheels of the Indian economy turning. Yet, a large number of them lack access to regular wages, provident fund benefits, pensions, health insurance, and accident protection. Their lives are frequently overshadowed by uncertainty, as the availability of work and the loss of employment can occur without warning. In such circumstances, restricting social security primarily to the organised sector is simply not enough. Its protective reach must extend to those hardworking hands whose labour sustains the nation’s production systems and service economy.
The government led by Prime Minister Narendra Modi has developed a comprehensive framework for delivering public assistance through Jan Dhan bank accounts, Direct Benefit Transfer (DBT), Aadhaar-based identification, and digital public infrastructure. The Pradhan Mantri Jan Dhan Yojana has contributed significantly to bringing people previously excluded from banking into the formal financial system. Direct Benefit Transfer has helped reduce the role of intermediaries in numerous welfare schemes and facilitated the direct transfer of assistance to beneficiaries’ bank accounts. These mechanisms have strengthened the potential for greater transparency, accountability, and efficiency in the implementation of social security programmes.
Healthcare protection is among the most sensitive and vital dimensions of social security. The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana has played an important role in extending health coverage to eligible families for hospitalisation and treatment. The initiative to bring senior citizens aged 70 years and above under the ambit of healthcare coverage through the Ayushman Vay Vandana Yojana has also sought to ease medical anxieties during old age. Nevertheless, there remains a pressing need to increase public expenditure on healthcare, strengthen primary health centres, ensure the availability of specialist doctors in rural areas, and reduce the cost of medicines and diagnostic tests. When a serious illness wipes out a family’s savings accumulated over many years or forces it to borrow heavily, it exposes the limitations of the existing social security framework. Healthcare can become a truly effective shield of protection only when the affordability of treatment is ensured alongside its availability.
In the sphere of financial security, initiatives such as the Pradhan Mantri Kisan Samman Nidhi, Atal Pension Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, and Pradhan Mantri Suraksha Bima Yojana address the needs of different sections of society. Through PM-KISAN, eligible farming families receive direct financial assistance. The Atal Pension Yojana seeks to provide people working in the informal sector with a source of regular income during old age. The Jeevan Jyoti Bima Yojana and the Suraksha Bima Yojana offer life insurance and accident insurance, respectively, helping families cope with potential financial crises. Similarly, the Pradhan Mantri Poshan Shakti Nirman Yojana, popularly known as PM-POSHAN, advances the social objectives of nutrition and education by providing nutritious meals to schoolchildren.
Steps aimed at expanding the coverage of the Employees’ Provident Fund Organisation (EPFO) are also significant from the perspective of workers’ long-term financial security. According to the details provided, a provision has been made to increase the monthly wage ceiling for mandatory social security coverage from ₹15,000 to ₹25,000, effective September 17, 2026. If implemented as envisaged, this change could bring approximately 5.1 million additional employees within the ambit of the mandatory provident fund system. The proposed change is particularly significant for employees whose wages have placed them beyond the earlier threshold. Regular contributions to the provident fund help build a financial cushion for retirement, while pension and insurance benefits, wherever applicable under the relevant provisions, can provide additional support to workers and their families. However, any such expansion must also maintain a reasonable balance between employees’ take-home pay, employers’ costs, and the financial capacity of small enterprises.
The e-Shram portal has emerged as an important instrument for extending social security to workers in the informal sector. At the same time, the changing nature of the economy has introduced new challenges. Workers in the gig and platform economy—including delivery personnel, cab drivers, and other service providers—may find new employment opportunities, but their incomes, working hours, and long-term security often remain uncertain. Similarly, the needs of women, migrant workers, persons with disabilities, and senior citizens differ considerably and cannot be addressed through a uniform approach. Women workers need maternity benefits and safe working environments; migrant workers require access to essential services and welfare benefits across state boundaries; and construction workers need simple, accessible mechanisms to avail themselves of the benefits intended for them. India must therefore develop a flexible and portable social security framework in which a change of employer, workplace, or place of residence does not deprive an individual of their rightful entitlements.
Alongside these measures, particular attention must be given to making old-age and widow pensions more adequate in line with inflation, increasing public expenditure on healthcare, and simplifying access to contributory pension and insurance options for informal-sector workers. Panchayati Raj institutions, urban local bodies, and Common Service Centres should play a more proactive role in spreading awareness, facilitating registration, and helping eligible citizens access social security schemes.
The vision of a developed India can be realised only when social sensitivity and human dignity advance in step with economic growth. The expanding scope of social security under Prime Minister Narendra Modi’s leadership reflects an important policy shift in this direction. Yet, the next phase must go beyond the expansion of schemes. It must focus on effective implementation, adequate financial resources, and the assurance that benefits genuinely reach the last person in the queue. Expenditure on social security should not be viewed as a burden on the public exchequer; rather, it should be recognised as an investment in building a healthy, productive, resilient, and self-confident society.
When workers are relieved of constant anxiety about their future, farmers receive support during times of distress, senior citizens can live with dignity, and poor families have the assurance of medical treatment when illness strikes, the achievements of economic development begin to translate into meaningful improvements in people’s lives. That is the true test of inclusive development—and the very foundation of a strong, compassionate, and self-reliant India. |
