Social Security India: Expansion and Challenges in Coverage

UPSC Mapping

Prelims	Mains
Social Justice & Governance	GS Paper 2 (Social Justice & Governance)

Social Security India has witnessed unprecedented expansion, with coverage increasing from 25 crore before 2014 to 100 crore within a decade. The International Labour Organisation (ILO) acknowledged this surge, noting India’s social protection coverage rose from 19% in 2015 to 64.3% in 2025.

Quick Facts

Coverage (2015)	19%
Coverage (2025)	64.3%
Ayushman Cards	39.94 crore

What is Social Security India?

Social Security India encompasses a broad range of schemes and legislative frameworks designed to provide financial protection against contingencies like retirement, illness, disability, and death. The government has expanded coverage through key pillars: legislations and reforms, budgetary provisions, digitisation, and partnerships with the private sector.

The Code on Social Security (2020) amalgamates nine laws to ensure social security protection for all workers, including gig workers. Over the past decade, 24.8 crore people have escaped multi-dimensional poverty due to these measures, reflecting their far-reaching impact.

Why is Social Security India in News?

Social Security India is in the news following the Prime Minister’s highlight of its unprecedented expansion and the ILO’s acknowledgment of the surge. Ayushman Bharat has issued 39.94 crore cards, offering free health coverage up to ₹5 lakh per family. Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) provides free food grains to vulnerable populations.

The eShram portal has created a National Database of Unorganised Workers, providing Universal Account Numbers. Atal Pension Yojana (APY), along with PMJJBY and PMSBY, strengthens the social security system.

Key Features of Social Security India

• Universal Health Coverage: Ayushman Bharat provides ₹5 lakh health insurance to vulnerable families.
• Food Security: PMGKAY delivers free food grains to over 80 crore beneficiaries.
• Unorganised Workers: eShram portal registers 31.87 crore workers with Universal Account Numbers.
• Pension and Insurance: APY, PMJJBY, and PMSBY provide pension, life, and accident insurance.
• Legislative Consolidation: Code on Social Security (2020) amalgamates nine laws, including gig workers.

Challenges in Social Security India

• Informality: A large and persistent informal economy is the most significant barrier to extending coverage.
• Demographic Ageing: Asia Pacific’s population aged 65+ is projected to reach 18.6% by 2050, increasing the burden.
• Financing Constraints: High debt servicing costs and global economic slowdown strain fiscal capacity.
• International Migration: Migrant workers often lack access to social protection in host countries.
• Climate Change: Mitigation policies can negatively impact workers in carbon-intensive industries.

Way Forward for Social Security India

To deepen Social Security India, the focus must shift from coverage to adequacy and quality. Expanding social security to gig and platform workers through the Code on Social Security is critical. Strengthening the eShram portal with direct benefit transfer integration can improve delivery.

Promoting financial literacy and awareness among informal workers can increase uptake. Exploring innovative financing mechanisms—such as social security funds and employer contributions—can address fiscal constraints.

Prelims Practice Corner

Q1. What was India’s social security coverage in 2025 according to the ILO?

• (a) 19%
• (b) 45%
• (c) 64.3%
• (d) 80%

Answer: (c) Coverage reached 64.3% in 2025.

Q2. How many Ayushman cards have been issued as of March 2025?

• (a) 20 crore
• (b) 39.94 crore
• (c) 50 crore
• (d) 60 crore

Answer: (b) 39.94 crore Ayushman cards have been issued.

Q3. Which scheme provides free food grains to vulnerable populations?

• (a) PMJDY
• (b) PMGKAY
• (c) PMSBY
• (d) PMJJBY

Answer: (b) PMGKAY provides free food grains.

Q4. What is the eShram portal?

• (a) A health insurance platform
• (b) A national database for unorganised workers
• (c) A pension scheme
• (d) A skill development portal

Answer: (b) eShram creates a National Database of Unorganised Workers.

Q5. Which Act amalgamates nine labour laws for social security?

• (a) Factories Act
• (b) Code on Social Security, 2020
• (c) Minimum Wages Act
• (d) Industrial Disputes Act

Answer: (b) The Code on Social Security, 2020, amalgamates nine laws.

Mains Practice Questions

Q1. Discuss the expansion of social security coverage in India, highlighting the key schemes and the challenges that remain. (250 words, 15 marks)

Answer Structure:

• Intro: Introduce the expansion of Social Security India and ILO’s acknowledgment.
• Body: Discuss key schemes: Ayushman Bharat, PMGKAY, eShram, APY, PMJJBY, PMSBY, and the Code on Social Security. Analyse challenges: informality, ageing, financing, migration. Suggest a way forward focusing on adequacy and gig workers.
• Conclusion: Emphasise the need for sustainable financing and universal coverage.

Q2. What are the major challenges in extending social security to gig and platform workers in India? (150 words, 10 marks)

Answer Structure:

• Intro: Note the rise of gig and platform work.
• Body: Discuss challenges: informal nature, lack of employer contributions, weak social protection frameworks, and limited awareness. Mention the Code on Social Security’s provisions and the need for implementation.
• Conclusion: Conclude that regulatory clarity and portable benefits are essential.

FAQs on Social Security India

What is social security?

It is a framework providing financial protection against contingencies like retirement, illness, disability, and death.

What is the Code on Social Security, 2020?

It amalgamates nine labour laws to ensure social security protection for all workers, including gig and platform workers.

What is the eShram portal?

It is a national database for unorganised workers providing Universal Account Numbers for social security benefits.