Need for a Unified Welfare Architecture in India

Context: India’s welfare architecture is vast and globally recognised by the International Labour Organisation (ILO). However, it remains fragmented and inefficient, underscoring the need for systemic unification.

Relevance of the Topic  Mains: India’s Welfare Architecture - Issues, Need for a unified system.

India's Welfare Architecture:  

• India’s welfare architecture is one of the largest in the world. The Centre runs over 34 major social protection schemes and 24 pension schemes, while states have their own independent initiatives. 
• The International Labour Organisation (ILO) has acknowledged India’s achievement in delivering both cash and non-cash social protection. 
• ILO’s World Social Protection Report (2024) states that India’s social protection coverage has doubled from 24.4% in 2021 to 48.8% in 2024.

While these benefits reach over 100 crore beneficiaries, they operate in silos often duplicating efforts and creating administrative inefficiencies.

Issues with the Current Welfare System

• Fragmentation of Schemes: Over 34 major central schemes, 24 pension schemes, and many separate state-level programmes run in silos.
• Duplication & Overlap: Schemes with similar benefits are repackaged under new names by different states, leading to duplication of effort and resources. Institutions like E-Shram (unorganised workers) and EPFO (formal workers) overlap, but do not interconnect.
• Poor Targeting: Eligibility criteria vary widely between schemes causing exclusion of deserving beneficiaries and inclusion of ineligible ones. No unified database (scattered data) or structure makes it difficult to identify the right people.
• Complex Access for Citizens: People have to run between multiple government offices and platforms to claim entitlements. Lack of portability across states for migrants and informal workers.
• Inefficient Use of Resources: Scarce fiscal resources spread thinly across many small schemes instead of pooled for greater impact.
• Focus on Short-term Consumption, Not Long-term Growth: Most schemes are isolated cash payouts without linkages to skill development, asset creation, or economic empowerment.
• Political Populism: Frequent election-season welfare promises add to fragmentation and fiscal stress. 

These structural gaps highlight the urgent need for a unified welfare delivery system that consolidates schemes and integrates data across Centre and states.

Advantages of a Unified Welfare State

• Eliminates duplication of schemes and saves administrative costs. Optimises scarce fiscal resources for deeper coverage.
• Simplifies access: one platform for all entitlements. Improves interoperability between databases and schemes.
• Strengthens targeting of genuine beneficiaries. Integrates benefits, allowing one entitlement to unlock others.
• Shifts focus on collective outcomes instead of isolated scheme performance.

The G20 New Delhi Declaration’s call for “sustainably financed universal social protection coverage” further strengthens the case for a “One Nation, One Social Security” governance model.

Proposed Framework for Unified Welfare Architecture in India: 

• Centre provides the unified architecture; states adapt to local contexts.
• Use EPFO’s Universal Account Number (UAN) to route all transfers, earmarking a portion for pensions/insurance.
• Employ Aadhaar, JAM Trinity, and Digital India Stack for portability and verification.
• Reward states for improved coverage, efficiency, and outcome delivery.
• Harmonise overlapping welfare laws while respecting state autonomy.

To unlock the full potential of its vast welfare network, India must move from fragmented silos to a unified, digitally integrated system that ensures portability, precision targeting, and lasting socio-economic upliftment.