Most of India’s population remains outside of the formal and government sectors. As such people are greatly dependent on what the state can provide in terms of social welfare. The challenge for government at every level, therefore, is to establish a robust and inclusive social welfare system. For this India must transition from traditional, fragmented subsidy models to a comprehensive, lifecycle-based social security framework.
The future steps critical to achieving well-established social welfare include formalising the informal sector. Over 80% of India’s workforce operates in the informal economy without job security or safety nets. Expanding digital registration via platforms like the e-Shram Portal is essential. This must be paired with mandatory, portable welfare benefits—such as pension schemes, provident funds, and disability insurance—that follow workers across state lines.
Also, healthcare and social insurance need to be formalised. While programmes like Ayushman Bharat offer secondary and tertiary care hospitalisation cover to low-income families, India needs a shift toward universal healthcare (UHC). Future steps must focus on upgrading primary health centres, capping out-of-pocket medical expenses, and introducing publicly funded outpatient care to prevent medical inflation from pushing vulnerable families back into poverty.
A crucial element is strengthening of female labour force participation. Advancing women’s economic empowerment is foundational to community welfare. Future policies must ensure safe, subsidised public transport, strict implementation of equal pay laws, and the universal creation of affordable, state-backed childcare and crèche facilities.
Direct Benefit Transfers (DBT) and Data Privacy need to be further strengthened. The JAM Trinity (Jan Dhan accounts, Aadhaar, and Mobile) successfully reduced leaks in welfare distribution. The next phase requires deploying predictive data analytics to proactively identify eligible citizens before they apply. Simultaneously, the state must implement stringent data protection boundaries under the Digital Personal Data Protection Act to avoid wrongful exclusion due to biometric or technical errors.
In the macro perspective, climate and agro-welfare need to be institutionalised. With rising climate risks, India’s social welfare must integrate environmental resilience. Climate-adaptive infrastructure (like water conservation and afforestation) and implementing automated, satellite-backed crop insurance payouts will protect rural communities from severe weather shocks.
By prioritising these institutional reforms, scaling public expenditure on human capital, and removing structural barriers for marginalised groups, India can successfully build a resilient, modern welfare state. And it is not necessary for this to be done just at the central level. The principle can be applied at the state, district and panchayat levels if it is understood by those in power.
