Towards a Universal Social Security Framework in India: Implications for Labour Markets and Human Resource Development

Abstract

India’s rapid economic growth and structural transformation of the labour market highlight the urgent need for a comprehensive and inclusive socialprotection system. This paper examines the theoretical and empirical justification for establishing a Universal Social Security Framework in India, with particular relevance to workforce development and employment relations. Although social protection coverage has expanded over the past decade through welfare schemes and legislative reforms, the existing social security architecture remains fragmented, selective, and uneven. These limitations disproportionately affect informal sector workers, migrants, women, and other vulnerable groups who constitute a significant share of India’s labour force. Drawing on theories of social justice, welfare state development, and human rights, the paper argues that social security must be recognised as a fundamental right rather than a discretionary welfare provision, essential for inclusive and sustainable human resource development. The current system is characterised by multiple schemes with divergent eligibility criteria, limited portability, and strong employment-linked conditionalities, resulting in the partial or complete exclusion of large sections of the workforce due to informality, administrative barriers, and low awareness. The study highlights the growing mismatch between India’s reliance on targeted and employment-based welfare programmes and the realities of a labour market increasingly shaped by informality, gig work, and precarious employment. This misalignment, compounded by weak governance coordination, heightens income insecurity, undermines workforce stability, and constrains organisational and national productivity, as demonstrated during the COVID 19 pandemic. Using national and international data, the paper identifies both progress and persistent gaps in India’s social security system. While digitisation initiatives and legislative consolidation through the Code on Social Security represent important advancements, challenges related to implementation, fiscal integration, and centre state coordination remain. The paper concludes that a rights based universal social security framework is a policy, developmental, and moral imperative for strengthening labour market resilience, equity, and long-term human resource sustainability in India.