Social Welfare in India
- Shrivridhi ShuklaShrivridhi ShuklaRutgers, The State University of New Jersey
- and Arpita GuptaArpita GuptaJindal Global Law School
India’s rapid economic growth is accompanied by economic inequality, poverty, and a range of social issues, thus, raising important questions concerning the breadth and depth of social protection and promotion policies prevalent in the country. The social welfare system in India is different for the formal and informal sectors of the economy. It consists of two largely parallel systems. With respect to the formal economy or the organized sector, it operates directly through the government, state-owned enterprises, and/ or private corporations that provide reasonably strong social protection to their employees through mandatory legislations spanning aspects such as payment of gratuity, employees’ provident fund, and the employees’ state insurance fund. In contrast, the informal or the unorganized sector is covered through a fragmented system of welfare schemes and benefits provided by the central government and the respective state governments.
Along with tracing the historical evolution of India’s welfare system, this article outlines the constitutional place of welfare in the country. With respect to the informal sector of the economy, it provides an overview of some of the key promotion and protection-orientated welfare policies and schemes, including those that address poverty, unemployment, education, health and food insecurity. Further, it discusses the barriers experienced by people in accessing welfare benefits, such as corruption and bureaucratic hurdles, and challenges faced by the government in welfare provision, such as scale of operation and identification of the target population groups. Finally, it assesses the country’s welfare system in light of the Global Social Protection Floor Initiative of the ILO-UN.