Social Protection 2025

Why in News: The World Bank’s State of Social Protection Report 2025 reveals significant social protection gaps in low- and middle-income countries (LICs and MICs).

Massive Coverage Gaps: Nearly two billion people in LICs and MICs lack adequate social protection. 1.6 billion receive no social protection at all.

Regional Disparities: Sub-Saharan Africa is the most affected, with 70% lacking any social protection. In LICs, over 80% are uncovered or inadequately covered.

Inadequate Progress: Social protection coverage in LICs and MICs only rose from 41% to 51% between 2010 and 2022. The current pace is insufficient to meet SDG targets by 2030.

Funding Constraints: High-income countries spend significantly more on social protection than LICs (5.3 times more of GDP). Spending is often concentrated on formal workers, neglecting the poor.

External Shocks: Social protection systems are unprepared for climate change, conflict, and pandemics, potentially pushing millions into poverty.

India’s Coverage: India’s social protection coverage doubled from 24.4% in 2021 to 48.8% in 2024. Around 65% of the population is covered by at least one scheme.

Challenges in India: Ineffective welfare boards, limited fiscal capacity (spending 5% of GDP), technological/administrative hurdles (eShram registration), delayed ratification of ILO conventions, and demographic shifts (aging population).

Global Recommendations: Expand universal basic income, reform regressive subsidies, invest in climate-resilient systems, and address life-cycle risks.

Need for Reforms: The report underscores the urgent need for targeted reforms and investments to strengthen social protection systems and ensure inclusive development, poverty reduction efforts and reduce inequality.