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EconomicsSource: Down To Earth

State of Social Protection Report 2025

Tuesday, 15 April 2025
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Key Points

The State of Social Protection Report 2025 highlights a staggering 1.6 billion individuals in low- and middle-income countries lacking social protection, underscoring a critical issue for sustainable development. This report is significant for UPSC aspirants as it connects to various GS Papers, particularly GS Paper 2 (Social Justice) and GS Paper 3 (Economic Development). Last Updated: 2025-04-15

Key Facts About the State of Social Protection

  • 1.6 billion people in low-income countries (LICs) and middle-income countries (MICs) lack social protection.
  • 88% of those in extreme poverty are unprotected.
  • Coverage in LICs and MICs increased from 41% in 2010 to 51% in 2022.
  • High-income countries spend 5.3 times more on social protection than LICs and MICs.
  • LICs allocate only 0.8% of their GDP to social assistance.
  • Climate change may push an additional 130 million people into extreme poverty by 2030.
  • India's coverage doubled from 24.4% in 2021 to 48.8% in 2024.
  • Approximately 920 million Indians are covered by social protection schemes.

Broader Context of Social Protection in India

The issue of social protection is pivotal for India's economic and social stability. With approximately 24.8 crore Indians escaping multi-dimensional poverty between 2013 and 2023, the government’s initiatives like Ayushman Bharat and PMGKAY are crucial. However, India still spends only 5% of its GDP on social protection, which is significantly lower compared to high-income nations. The report emphasizes the need for a unified database to enhance the delivery of social protection services, addressing the technological issues that hinder platforms like eShram.

Related Government Schemes/Policies

  • Ayushman Bharat: A health insurance scheme aimed at providing coverage to economically vulnerable populations.
  • PMGKAY: A food security initiative that provides free food grains to the poor during crises.

UPSC Relevance

This topic is relevant for GS Paper 2 (Social Justice) and GS Paper 3 (Economic Development). In the Prelims, factual questions may arise regarding the statistics of social protection coverage and the impact of climate change on poverty. For the Mains, candidates could explore essay themes related to social justice, economic inequality, and the effectiveness of social welfare schemes in India.

FAQ Section

  • What is the State of Social Protection Report 2025?
    The report assesses the status of social protection globally, revealing that 1.6 billion people in LICs and MICs are unprotected.
  • Why is social protection important?
    Social protection is crucial for reducing poverty and ensuring economic stability, especially as 88% of those in extreme poverty lack coverage.
  • What are the key features of India's social protection initiatives?
    India's initiatives include schemes like Ayushman Bharat and PMGKAY, which aim to provide health coverage and food security, respectively.

Detailed Coverage

  • 1.6 billion people in LICs and MICs lack social protection.
  • 88% of those in extreme poverty are unprotected.
  • Coverage in LICs and MICs increased from 41% to 51% (2010-2022).
  • High-income countries spend 5.3x more on social protection.
  • LICs allocate only 0.8% of GDP to social assistance.
  • Climate change may push 130 million into extreme poverty by 2030.
  • India's coverage doubled from 24.4% to 48.8% from 2021 to 2024.
  • Approximately 920 million Indians are covered by social protection schemes.
  • 24.8 crore Indians escaped multi-dimensional poverty (2013-2023).
  • Key initiatives include Ayushman Bharat and PMGKAY.
  • Welfare boards underutilize funds, with Rs 70,000 crore for workers unspent.
  • India spends 5% of GDP on social protection.
  • Technological issues hinder eShram's potential.
  • India has not ratified key ILO conventions.
  • A unified database is needed for better social protection delivery.
  • Global recommendations include expanding basic income and reforming subsidies.
Economics

Practice Questions

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The significant increase in India's social protection coverage from 24.4% to 48.8% between 2021 and 2024 illustrates what broader trend in social policy development?