Margaret Mead, the famous anthropologist, once observed, “The first sign of civilization is not a sharpened stone or tool, but a healed femur.”
This quote reflects the essence of human care and mutual support. It highlights that true civilization begins when people look after one another, especially in need. Today, this idea extends to the social protection systems we build to support our citizens.
Like many nations, India is grappling with converging crises- climate change, economic instability, and rapid technological transformations. These challenges are exposing the gaps in the country’s social protection systems. According to the World Social Protection Report 2024-26 by the International Labour Organization (ILO), India spends only 5.1% of its GDP on social protection (excluding healthcare), significantly lower than the global average of 12.9%. High-income countries spend around 16.2% of their GDP on social security. This disparity leaves India’s population, particularly informal workers and vulnerable groups, under-protected. Coverage rates are also alarmingly low, with just 32.4% of the population covered by at least one form of social protection in India, compared to 71% in upper-middle-income countries This underinvestment in social protection means that millions are left vulnerable to economic and environmental shocks.
Climate Change: A Growing Threat to Livelihoods
According to the report, 25% of India’s population is at risk of climate-related disasters. Despite this, India’s social protection system is not well-equipped to handle these crises. Programs like PM-KISAN, which provide income support to farmers, offer some relief, but much more is needed. Crop insurance, unemployment benefits, and health coverage are either insufficient or inaccessible to those most at risk.
In recent years, India has experienced a rise in extreme weather events—from the devastating Kerala floods to severe heat waves across northern states. These events not only destroy crops and infrastructure but push families deeper into poverty. According to environmental studies, climate-related financial losses in India could cost up to $118 billion annually by 2030, impacting informal and rural workers the most. For these workers, a single climate disaster can wipe out their savings, underscoring the need for climate-resilient social protection systems that include both financial assistance and healthcare coverage for impacted communities.
Migration: A Consequence of Insecurity
The absence of adequate social protection is a key factor driving migration. When informal workers in urban areas lose their jobs, as seen during the COVID-19 pandemic, they often migrate back to rural regions. Without pensions, unemployment insurance, or healthcare, many were forced to make long journeys on foot. Internal migration underscores the gaps in India’s social protection, as 90% of workers are in the informal sector and remain largely uncovered by these safety nets.
According to the Ministry of Labour and Employment, migration flows between states have increased significantly, with states like Uttar Pradesh and Bihar sending the largest number of workers to states with more urban development, like Maharashtra and Gujarat. Over 100 million internal migrants work in Indian cities, often in construction, manufacturing, or domestic roles. Despite their contributions, these workers are frequently excluded from state welfare programs due to residence-based eligibility.*
Migration is not only internal; many Indians seek work abroad to escape the insecurity at home. The death of an Indian farm labourer in Italy this year highlights the dangers of such economic migration. These stories point to the lack of social security at home that forces people to seek precarious work in foreign lands.
Economic Instability and Regional Conflicts
India’s economy, already volatile, has been further impacted by regional conflicts and economic instability. The ILO report highlights the glaring lack of unemployment insurance in India. This gap became evident during the pandemic, when widespread job losses left many without income or state support. Programs like the Targeted Public Distribution System (TPDS), which provides food security to 58% of the population, have been vital during these periods, but food security alone is not enough.
According to the ILO, India’s lack of comprehensive unemployment protection is particularly concerning given its size and economic importance in South Asia. During the pandemic, job losses reached 19 million by the second quarter of 2020, particularly in manufacturing and retail sectors, as per the Centre for Monitoring Indian Economy (CMIE). For informal workers, a lack of steady employment translates to no income, limited access to food, and healthcare insecurity.
The Future of Work: AI and Automation
Adding to India’s challenges is the rapid rise of Artificial Intelligence (AI) and automation, which are transforming industries and threatening jobs, particularly for low-skilled workers. The ILO report emphasizes that reskilling and social protection are essential to prevent millions of workers from being displaced.
The National Skill Development Corporation (NSDC) is currently working on a plan to reskill at least 200 million workers by 2030 to prepare for the future of work. However, without coordinated social protection systems, AI could deepen inequality, disproportionately affecting informal and lower-skilled workers who may not have access to retraining.
Strengthening Social Protection
The ILO report offers clear recommendations for India to strengthen its social protection system. First, the country must expand unemployment insurance and pension schemes to cover its informal workforce. Programs like the Pradhan Mantri Shram Yogi Maan-Dhan (PMSYM), which provides pensions to informal workers, are a good start but must be scaled up significantly.
Gender disparities also remain a challenge in India’s social protection. Women, particularly those in informal employment or caregiving roles, are often excluded from social protection benefits. The ILO suggests expanding maternity benefits and ensuring access to pension schemes for women as essential steps in reducing these disparities. Only 26% of Indian women are covered by at least one social protection measure, compared to 39% for men, a gap that grows with age.
Lastly, the ILO emphasizes the importance of improving data collection and monitoring. Programs like the Building and Other Construction Workers Fund could benefit millions, but poor data and lack of transparency hinder their effectiveness. Data tracking and streamlined technology could help India reach more beneficiaries, ensuring that vulnerable populations aren’t overlooked.
Building a Resilient Future
Social protection is not just about addressing poverty; it is a tool for building a more resilient and inclusive society. The World Social Protection Report makes it evident that while India has made strides, much more needs to be done. By increasing spending, expanding coverage, addressing gender disparities, and preparing for the future of work, India can build a stronger, more resilient social protection system—one that ensures no one is left behind.
As India moves forward, prioritizing social protection spending and integrating technology for efficient delivery will be essential in securing a stable future. Given India’s commitment to becoming a $5 trillion economy, investing in social protection could serve as a foundation for sustainable growth, making the nation stronger and more unified against future challenges.
Bijayani Mishra is Assistant Professor, Maitreyi College, University of Delhi. Asha Verma works at UNU FLORES in Germany on resource nexus research project.