Even those suffer from a glaring weakness: Fragmentation. With over 400 schemes targeting diverse groups — farmers, informal workers, women and senior citizens — operated by multiple ministries, lack of coordination leads to inefficiency, duplication and inequity.

For example, health insurance schemes like Ayushman Bharat overlap with state-run initiatives, creating confusion among beneficiaries and leaving critical coverage gaps. A 2021 World Bank report revealed that despite numerous schemes, only 22 per cent of informal workers — who form the backbone of India’s economy — are covered under any form of social protection.

Yamini Aiyar, president of the Centre for Policy Research, New Delhi, emphasises: "Fragmentation dilutes the effectiveness of social protection schemes. It’s not just about overlap; but also about the inability of our system to adapt to the realities of those it seeks to protect."

Wake-Up Calls

The COVID-19 pandemic starkly illustrated these weaknesses. While numerous programmes promised relief, millions of workers were left out due to implementation gaps. According to the International Labour Organisation (ILO), 75 per cent of India’s informal workers — who account for 90 per cent of the workforce — faced severe income losses during the lockdowns. The absence of unified databases and targeting mechanisms left many without the support they desperately needed.

“We saw the devastating impact of this gap during the pandemic,” says economist Rajesh Mishra. "Thousands of migrant workers were stranded, homeless and hungry because there was no safety net for them in the cities where they worked."

Similarly, climate change is not a future threat but a current reality reshaping the lives of millions. Extreme weather events — floods in Assam, heatwaves in Rajasthan, cyclones in Odisha — are becoming more frequent and severe. A 2022 report by the National Institute of Disaster Management highlighted that nearly 12 million people in India are annually displaced due to climate-related disasters, with minimal or no access to welfare.

Studies show that low-income households are disproportionately affected by climate events. For instance, the 2020 Bihar floods displaced over 8 million people, most of whom lacked basic protection or access to emergency housing, food or healthcare.

“Pandemics and climate change are no longer one-off shocks — they are the new normal,” said Anuradha Singh, welfare economist at IIM Amritsar. "A resilient social protection framework must not only address ongoing vulnerabilities but also anticipate future crises."

Geographic Disparities, Urban Blind Spots

India’s regional disparities compound these challenges. Southern states like Tamil Nadu and Kerala have long been leaders in welfare implementation, leveraging strong governance structures and robust digital infrastructure. In contrast, northern states such as Bihar, Jharkhand and Uttar Pradesh struggle to even meet basic benchmarks, due to poor governance and logistical bottlenecks.

Urban centres, despite being economic powerhouses, remain welfare blind spots. The lack of a dedicated social protection framework for urban informal workers — such as construction labourers, domestic helpers and gig economy workers — leaves millions highly vulnerable. These workers often migrate in search of better opportunities, but find themselves excluded from rural schemes like MGNREGA, and disconnected from urban welfare systems.

A stronger focus on climate-resilient urban policies is essential. For instance, workers in flood-prone cities like Mumbai and Chennai, face repeated loss of shelter and income during monsoons, yet current welfare programmes rarely integrate disaster relief with long-term social security.

Global Lessons In Social Protection

India’s fragmented approach contrasts sharply with the streamlined systems seen in countries like Brazil and Indonesia. Brazil’s Bolsa Família programme integrates cash transfers with conditional benefits like school attendance and healthcare check-ups. This model has lifted millions out of poverty and significantly improved literacy rates among children in beneficiary families.

Indonesia’s Unified Database for Social Protection, linked to national ID systems, has reduced exclusion errors by 25 per cent and cut administrative costs by 18 per cent. Importantly, its framework is designed with the flexibility to scale-up rapidly during disasters, whether pandemics or natural calamities, ensuring timely assistance to affected populations.

Closer to India, Thailand’s Universal Coverage Scheme (UCS) offers an excellent example of consolidating fragmented health programmes into one cohesive system. UCS ensures nearly universal access to affordable healthcare, significantly reducing out-of-pocket expenditures for the poor.

Ramesh Chand, a member of NITI Aayog, notes: "Climate resilience must be a cornerstone of any social protection system. Global examples show us that simplicity, integration and adaptability are key to building systems that can weather crises."

Towards A Comprehensive Social Protection Act

India’s sprawling network of welfare schemes reflects an intent to cover diverse needs, but the lack of a cohesive framework creates a maze that beneficiaries and administrators alike struggle to navigate. A unified Social Protection Act could address these inefficiencies, creating a safety net for all citizens.

A robust Social Protection Act could ensure:

Guarantee Universal Entitlements: All citizens would have access to essential services such as healthcare, pensions, affordable housing and income support. Urban informal workers would finally benefit from a dedicated employment guarantee programme akin to MGNREGA.

Integrate Climate Vulnerabilities: The Act must account for climate-related displacement and losses, ensuring that emergency support is integrated with long-term social security. For example, disaster-prone regions could have pre-allocated funds for rapid relief and rehabilitation under a centralised framework.

Build Adaptive Systems: A unified framework must include mechanisms for regular reviews and updates, allowing policies to adapt to emerging crises like pandemics and climate change.

Leverage Technology for Precision Targeting: A centralised, Aadhaar-linked database could eliminate duplication and ensure the inclusion of vulnerable groups like migrants, women-headed households and tribal communities.

Streamline Delivery: Expanding Direct Benefit Transfers (DBTs) under a unified framework would reduce delays and leakages. According to the Ministry of Finance, DBTs have already saved Rs 1.78 lakh crore by eliminating fraudulent claims and intermediaries.

Seizing India’s Moment

Pandemics and climate change are wake-up calls that India can't afford to ignore. They have exposed deep vulnerabilities in the country’s welfare systems, but also present an opportunity to build resilience for the future.

India stands at a pivotal moment. With a young population and a demographic advantage unmatched by most nations, the country has the potential to become a global powerhouse. However, to truly capitalise on this advantage, it must address the fragmented nature of its social protection systems and prepare to absorb shocks — economic, climatic or health-related — across identities and geographies.

“This is not just about fixing gaps; it’s about reimagining welfare as a right, not a privilege,” says Amita Sharma, professor of Social Work at Delhi University. "If India wants to compete with the world's most powerful nations, it must do so not just through economic might, but with the pride and equity of being the world’s largest democracy — a nation that develops as a whole."

A comprehensive Social Protection Act would signal a commitment to securing the rights and dignity of all Indians, from rural farmers to urban migrants, and from vulnerable women to tribal communities. As global examples show, the moment to act is not tomorrow but now.

By building a unified, equitable and resilient framework, India can turn its demographic dividend into an engine for sustainable development, ensuring that no one is left behind in the journey towards progress. This is the time to act — not only to fix current gaps, but to chart a future where growth is inclusive, just and reflective of India’s democratic ideals.