Updated date:

Social Security Schemes in India


Self sufficiency of low-income group of people of India is not far away...!

Social Security Schemes were not achieved as the target during the first decades since the Independence of India. The reason is that India is a big country on basis of population than its size.

Australia, Canada are big countries by area. But the population of these countries is less than 2 % of India.

China is a big country than India by area and by Population. But in diversity, China is a country hard to contrast with India.

India is really bigger than the European Union in the variety of its cultures, languages, religions, physiography, etc. (European Union is equal to the USA in size of Economy is a well-known fact).

There are 28 states and Union territories in India with different languages and cultures and 8 Union Territories.

However, there is a unity in diversity, It is the reason for India's existence through the Millenniums. Only Division happened is in the name of religion.


Why Social security schemes were not successful in India?

What is the present status of security schemes?

Are such schemes at a satisfactory level?

Any changes needed for such schemes?

In my blog, I expect to answer all the above questions.

India continued as a developing country since Independence. The population growth of India was higher than economic growth, which caused stagnation in per capita income. All scenario has changed with a new economic policy in 1991 under Prime Minister Nara Simha Rao.

In 1991, India's GDP was $ 1035 Billion (On the basis of Purchase Power Parity). In 2020, it has estimated about $ 11321 Billion. It is more than 11 times.

But the growth of Population increased from 838 Million to 1.3 Billion. It is only a 0.6-time increase. The cause of Nominal GDP is almost the same.

India saw 3.5 doublings of GDP after 1991, but the population increased by 66 % only. It is clear that India's Per Capita Income has increased many folds after 1991.

Poverty Eradication Programs

Previous Indian Governments mainly focused on poverty eradication programs.

Such programs through the Five Years Plan and Public Distribution System helped India's Low Income Group of the population from starvation.

Health, Housing, and Education are also suffered due to a lack of resources.

All the above conditions have changed after 2000. Now India is 3rd largest economy in the world on basis of GDP on a PPP basis and the fifth-largest economy on a Nominal basis.

Tax evasion and black money is decreasing every year. Indian economy and budget allocation are increasing 6 to 8 % every year (2020--21 will an exception to this to Corona Problems which has affected almost all countries). Health, Education, Housing, and job opportunities are flourishing because of the emerging of Economy,

Most backward states in India are now started to compete with other states to overtake SGDP (State GDP). See the budget of Indian States in the below link.

Big Companies are emerging every year, which contributes to big tax is spending on social security schemes by the Government of India.


National Pension System

In 2009, India Government has opened the New Pension System (NPS) to all citizens of India. Up-to 2009, NPS was a Pension scheme for Central Government and State Government Employees. But now it is open to all citizens and to Employees of Companies and Public Undertakings in India. The number of Subscribers, Contribution, and Asset Under Management are increasing every year. National Pension System of India will soon be one of the largest pension funds in the world. It comprises five sectors - Central Government Employees, State Government Employees, Corporate Sector Employees, All Citizen Model, and NPS Swavalamban ( For most economic backward section with Government contribution.

See Table below.


No. of Subscribers

Total Contribution (Rs in Crs)

AUM (Rs in Crs)

Per Capita Asset




































Atal Pension Yojana

Atal Pension Yojana is now part of the National Pension System. This was really new form of the Swavalamban Scheme which started during 2010-11. Lack of guaranteed pension benefits at the age of 60 from that scheme persuades the Government of India to start Atal Pension Yojana. It aims a pension to unorganized workers which is 88 % of the labor force in India after the age of 60. Existing Swavalamban subscribers can migrate APY with conditions.

This scheme begins on 1st June 2015. The minimum pension offered by the scheme is 1000 Rupees per month and up to 5000 Rupees per Month. There is a chance to increase the amounts per inflation rate in the future.

The minimum age to join the scheme is 18 years and the highest age is 40 years. The government will give 50 % or 1000 Rupees to each account. This contribution has restricted to 5 years.

APY has the highest growth rate in the number of subscribers and in Asset Under Management. See it in the following Table.

Financial Year

No. of Subscribers

Total Contribution (Rs in Crs)

AUM (Rs in Crs)

Percapita Asset

FY 2019-20





FY 2018-19





FY 2017-18





Other Pension Schemes Schemes

Pradhan Mantri Shram Yogi Maandhan:

This is a voluntary and contributory Pension Scheme for Unorganized Workers with a monthly income of Rs.15000 or less. Home-based workers, street vendors, head loaders, cobblers, domestic workers, Rural landless laborers, agricultural workers, construction workers, leather workers, etc are in its labor list.

Pradhan Mantri Kisan Maandhan :

This is an old-age pension scheme for all landholding Small and Marginal Farmers in the country. A farmer who owns cultivable land up to 2 hectares per land record of the concerned State or Union Territory is eligible for the scheme.

National Pension Scheme for Traders and Self Employed Persons Yojana :

This is a voluntary and contributory Government Pension Scheme for Merchants, retail traders, shopkeepers, and self-employed persons, with annual turnover not exceeding Rs.1.5 crore.

The age limit to join all the above schemes are between 18 to 40. The Minimum assured minimum pension after 60 years is 3,000 Rupees per month.

The persons already joined in NPS or EPF are not eligible to join in the above schemes.

Equal contribution by Central Government Government is the major feature of this scheme.

The above schemes have started under Sri. Narendra Modi Government in 2019.

PM Kisan Samman Nidhi:

It means "Gift to Farmer's from Prime Minister". This scheme started on 1/12/2018. About 10 Crore Farmers (100 Million) are the beneficiaries of this income support scheme. This scheme directly transfer 600,000,000,000 Rupees to 100,000,000 Persons per year. Initially, the scheme offers a small amount to farmers. But this will emerge as a plan to offer income support to all Small and Marginal landholding farmer families to fulfill their financial needs for procuring various inputs related to agriculture as well as domestic needs. Various aspects and beneficiary details of the scheme are available on the following official website.


Ayushman Bharat

Government on India started the scheme in 2018 under Sri Narendra Modi Government.

This scheme is aims to cover more than 107,400,000 most poor and vulnerable families providing coverage up-to 500,000 Rupees per family per year for secondary and tertiary care hospitalization. it covers about 40 % of families and population (About 500,000,000 Beneficiaries).

This aims to be the world’s largest government funded health care program.

Social Security, Medicare & Government Pensions

This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.

© 2020 Indra


Indra (author) from India on September 23, 2020:

Thanks so much. I have your same purpose

Helna on September 22, 2020:

Very interesting information, thanks