Daily Mains Question - GS 2 - 19th August 2025
- TPP
- Aug 19
- 4 min read
Welcome to your Daily UPSC Mains Answer Writing Practice – GS Paper 2 (Governance, Constitution, Social Justice).Today’s discussion focuses on India’s evolving social security architecture, which has recently come under global attention. The International Labour Organization (ILO) praised India’s “cash and non-cash” social protection measures, noting that schemes now reach over 100 crore beneficiaries. Yet, with 34+ major programmes and 24 pension schemes spread across Centre and States, the system faces duplication, exclusion, and fiscal inefficiencies.
For UPSC aspirants, this topic is highly relevant under GS Paper 2 themes:
Welfare schemes for vulnerable sections and their performance
Issues relating to poverty, hunger, and social security
Role of federalism in welfare delivery
Use of technology in governance (Digital India, DBT, interoperability)
Global best practices in social protection (Brazil, South Korea)
With India aspiring for Viksit Bharat @ 2047, analysing how a federated, rights-based and digitally integrated model can transform welfare delivery is crucial for both exam preparation and policy understanding.
Click Here to read the Monthly Current Affairs Pointers (CAP).
QUESTION
India’s welfare delivery is often criticised for duplication, exclusion, and fiscal inefficiency. In this context, discuss how a federated, rights-based, and digitally integrated social security architecture can ensure universal coverage and transform social protection in India.
Answer:
The International Labour Organization (ILO) recently praised India’s “cash and non-cash” social protection measures. The ILO-Phase II survey reveals India’s social security schemes cover over 100 crore beneficiaries.
Earlier, the ILO’s World Social Protection Report 2021 estimated India’s coverage at 24.4%, later revised to 48.8% after inclusion of state-level programmes.
Despite wide coverage, fragmentation, duplication and inefficiencies persist across more than 34 major schemes and 24 pension programmes. A unified, federated and digital social security architecture can address these challenges.
1. Current Challenges in Social Security Delivery
Fragmentation of Schemes – Overlapping benefits like E-Shram (unorganised workers) and EPFO (formal workers) lead to duplication and exclusion.
Data Discrepancies – Even ILO struggled with accurate coverage data, highlighting weak interoperability.
Fiscal Inefficiency – Populist pension or cash transfer schemes strain budgets without ensuring long-term security.
Beneficiary Exclusion – Eligibility silos and lack of portability deny benefits across states or occupational categories.
Short-termism – Schemes often seen as immediate income support, rather than instruments for capability building.
2. Federated, Rights-Based and Digital Integration – The Way Forward
(a) Federated Model
Constitutional Mandate: Central legislations like EPF Act, ESIC Act, Maternity Benefit Act apply nationally; states empowered to frame parallel schemes.
One Government Approach: States as partners adding top-ups rather than duplicating central schemes.
Cooperative Federalism: Ensures flexibility to accommodate diverse social realities (migrant labour, agriculture, informal sector).
(b) Rights-Based Approach
Universal Entitlement: Move from fragmented, conditional access to legally enforceable rights to social protection.
ILO Mandate: G20 New Delhi Declaration (2023) calls for “sustainably financed universal social protection”.
Preventing Populism: Rights-based entitlements reduce scope for arbitrary electoral welfare announcements.
(c) Digitally Integrated Governance
Digital India Stack: Use Aadhaar, UPI, and DigiLocker for seamless, paperless delivery.
Unique Identification: Universal Account Number (UAN) under EPFO as a single gateway for all cash transfers.
Interoperability: Linking E-Shram, EPFO, ESIC, and state databases to eliminate duplication.
Smart Transfers: Part of cash transfers channelled into pension, insurance, skill-building, ensuring intergenerational benefits.
3. Global Best Practices
Brazil – Fome Zero & SUAS: Unified System of Social Assistance across all states and municipalities.
South Korea: Consolidated welfare programmes under National Pension Service and National Health Insurance Service in the 1990s.
Lesson for India: Integrated frameworks improve efficiency, coverage, and fiscal sustainability.
4. Transformative Potential for India
Efficiency Gains: Optimal use of limited fiscal resources, reducing leakages.
Inclusion & Portability: Migrant workers, informal sector, and elderly gain reliable and portable benefits.
Capability Building: Social security linked with skill development creates a future-ready workforce.
Economic Growth: Long-term savings and pensions expand domestic capital formation.
Demographic Readiness: Over 50% of India’s population below 28 years today; by 2047, ageing population will require robust pension and health security.
A federated, rights-based, and digitally integrated social security system can be one of India’s most transformative governance reforms since Independence.
It aligns with the vision of “Viksit Bharat @ 2047” by ensuring financial security, dignity, and productivity for every citizen.
Leveraging the Digital India ecosystem, India can shift from fragmented, populist welfare towards sustainable, universal, and future-ready social protection.
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