India has made significant strides in expanding its social protection coverage, ensuring that a larger segment of the population benefits from welfare schemes. In a landmark initiative, the Ministry of Labour and Employment, in collaboration with the International Labour Organization (ILO), has embarked on a comprehensive data-pooling exercise aimed at strengthening the understanding and reach of social protection benefits across the country. Recent findings reveal that 65% of India’s population, approximately 92 crore individuals, are now covered by at least one social protection benefit.
Understanding the Social Protection Data Pooling Exercise
The data-pooling exercise commenced on 19 March 2025, focusing on consolidating information from various central government schemes, including MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act), Employees’ Provident Fund (EPF), and Employees’ State Insurance (ESI). Over 200 crore records were meticulously processed using encrypted Aadhaar as a unique identifier to streamline the identification of beneficiaries. This initiative not only aims to highlight unique beneficiaries but also seeks to optimise welfare spending by reducing redundancy and ensuring accurate disbursement.
Coverage Statistics: A Remarkable Growth
According to the ILO’s World Social Protection Report 2024-26, India’s social protection coverage has seen a remarkable upward trajectory. The coverage expanded from 24.4% in 2021 to 48.8% in 2024, encompassing both cash and in-kind benefits. However, the report’s assessment may still underestimate the true extent of coverage, as it does not fully account for in-kind benefits such as food security and housing schemes.
State-Level Collaboration and Data Consolidation
Collaboration with state governments has been a crucial element of this data consolidation exercise. Labour departments across various states have been instrumental in compiling and sharing relevant data. The initial phase of the project includes Uttar Pradesh, Rajasthan, Maharashtra, Madhya Pradesh, Tamil Nadu, Odisha, Andhra Pradesh, Telangana, Karnataka, and Gujarat. These states were selected for their large population base and active implementation of social welfare schemes.
Impact and Future Prospects
This comprehensive data pooling initiative is poised to enhance India’s reputation as a global leader in social protection. By identifying unique beneficiaries, state and central governments can better manage social protection schemes, minimise leakage, and ensure that resources reach the intended recipients. Moreover, this accurate and streamlined data system will strengthen India’s stance in international trade and social security negotiations, projecting the country as a model for welfare management.
Expansion of the Employees’ State Insurance Scheme
In a significant development, the Employees’ State Insurance Corporation (ESIC) recently expanded its coverage within Uttar Pradesh, including 15 additional districts under the ESI Scheme. With this expansion, 74 out of 75 districts in the state are now covered, marking a pivotal step towards enhancing social security for workers. This reflects India’s ongoing commitment to broadening the scope of its welfare schemes.
Summing Up
India’s Social Protection Data Pooling Exercise represents a monumental step towards ensuring that welfare benefits reach those who need them the most. By leveraging technology and fostering state-centre collaboration, the initiative is set to optimise welfare spending and enhance the effectiveness of social protection schemes. As India continues to expand its coverage and streamline its processes, it stands as a beacon of progress in global social security frameworks.