Social Infrastructure and Employment 2022-23 | Indian Economy for UPSC CSE PDF Download

 Page 1


CHAPTER
06
Post the massive, unexpected disruption to human lives caused by the global pandemic, 
the year 2022 was when humanity once again picked up the threads and took small steps 
to get back to a semblance of normalcy. However, the challenges posed by the aftermath 
of this crisis, subsequent waves of the pandemic and the ensuing Russia-Ukraine conflict 
have impacted the global as well as India’ s development trajectory. There was a stress on 
key aspects of social well being of citizens such as health, education and social security 
etc. and the Government stepped in to continue its support towards social infrastructure 
development. Standing on the brink of FY23, various indicators of social development 
appear to have recouped. Focus on long-term goals of human development and “sabka 
sath, sabka vikas” have assumed salience. The social sector expenditure outlay of the 
Centre and State Governments has increased steadily to stand at ?21.3 lakh crore in FY23 
(BE), with its share in total General Government expenditure standing at 26.6 per cent. 
Demonstrating the on-track progress to attain Sustainable Development Goal (SDG) of 
halving poverty by 2030, more than 41 crore people exited poverty between 2005-06 
and 2019-21 according to the UN Mutilidimensional Poverty Index. Bouquet of social 
protection schemes, customised for different sections of the population such as elderly, 
unorganised workers, have been prioritised ensuring a shield of dignity for every member 
of society. The special focus on aspirational districts has resulted in steady improvements 
across health, education, financial inclusion, and basic infrastructure. Transforming 
welfare through technology, Aadhaar and JAM trinity have revolutionalised the universe 
of state-citizen interaction, enabling targeted delivery of Direct Benefit Transfers (DBT) 
through 318 Central schemes and over 720 State DBT schemes, seamless portability of 
ration card across States through ‘One Nation One Ration Card’ and national database 
of unorganised workers ‘eShram portal’. The broad-based improvement in employment 
indicators is observed in data covering both the supply side and demand side of the  
labour market. 
Labour markets have recovered beyond pre-Covid levels, in both urban and rural 
areas, as observed in supply-side and demand-side employment data. Quarterly urban 
employment data shows progress beyond pre-pandemic levels as the unemployment rate 
declined from 8.3 per cent in July-September 2019 to 7.2 per cent in July-September 
2022. Reflecting rising formalisation of employment, net addition to EPFO payroll is 
steadily moving upward after swiftly rebounding from Covid-19, with the majority share 
coming from the youth. As per Annual Survey of Industries 2019-20, employment in the 
organised manufacturing sector has maintained a steady upward trend over time, with 
the employment per factory also increasing gradually. Employment has been rising faster 
Social infraStructure 
and employment: big tent
Page 2


CHAPTER
06
Post the massive, unexpected disruption to human lives caused by the global pandemic, 
the year 2022 was when humanity once again picked up the threads and took small steps 
to get back to a semblance of normalcy. However, the challenges posed by the aftermath 
of this crisis, subsequent waves of the pandemic and the ensuing Russia-Ukraine conflict 
have impacted the global as well as India’ s development trajectory. There was a stress on 
key aspects of social well being of citizens such as health, education and social security 
etc. and the Government stepped in to continue its support towards social infrastructure 
development. Standing on the brink of FY23, various indicators of social development 
appear to have recouped. Focus on long-term goals of human development and “sabka 
sath, sabka vikas” have assumed salience. The social sector expenditure outlay of the 
Centre and State Governments has increased steadily to stand at ?21.3 lakh crore in FY23 
(BE), with its share in total General Government expenditure standing at 26.6 per cent. 
Demonstrating the on-track progress to attain Sustainable Development Goal (SDG) of 
halving poverty by 2030, more than 41 crore people exited poverty between 2005-06 
and 2019-21 according to the UN Mutilidimensional Poverty Index. Bouquet of social 
protection schemes, customised for different sections of the population such as elderly, 
unorganised workers, have been prioritised ensuring a shield of dignity for every member 
of society. The special focus on aspirational districts has resulted in steady improvements 
across health, education, financial inclusion, and basic infrastructure. Transforming 
welfare through technology, Aadhaar and JAM trinity have revolutionalised the universe 
of state-citizen interaction, enabling targeted delivery of Direct Benefit Transfers (DBT) 
through 318 Central schemes and over 720 State DBT schemes, seamless portability of 
ration card across States through ‘One Nation One Ration Card’ and national database 
of unorganised workers ‘eShram portal’. The broad-based improvement in employment 
indicators is observed in data covering both the supply side and demand side of the  
labour market. 
Labour markets have recovered beyond pre-Covid levels, in both urban and rural 
areas, as observed in supply-side and demand-side employment data. Quarterly urban 
employment data shows progress beyond pre-pandemic levels as the unemployment rate 
declined from 8.3 per cent in July-September 2019 to 7.2 per cent in July-September 
2022. Reflecting rising formalisation of employment, net addition to EPFO payroll is 
steadily moving upward after swiftly rebounding from Covid-19, with the majority share 
coming from the youth. As per Annual Survey of Industries 2019-20, employment in the 
organised manufacturing sector has maintained a steady upward trend over time, with 
the employment per factory also increasing gradually. Employment has been rising faster 
Social infraStructure 
and employment: big tent
145 Social Infrastructure and Employment: Big Tent
in factories employing more than 100 workers than in smaller ones, suggesting scaling 
up of manufacturing units. Year-on-Year (YoY) decline in monthly demand for Mahatma 
Gandhi National Rural Employment Guarantee Scheme (MGNREGS) work is emanating 
from normalisation of the rural economy due to strong agricultural growth and a swift 
bounce-back from Covid-19. 
The noticeable rise in Rural Female Labour Force Participation Rate (FLFPR) from 
19.7 per cent in 2018-19 to 27.7 per cent in 2020-21 is a positive development. Notably, 
India’s female LFPR is likely to be underestimated, with reforms in survey design and 
content required to capture the reality of working females more accurately. Self-Help 
Groups (SHGs), having demonstrated their resilience and flexibility during Covid, can be 
an effective conduit to tap the rising willingness of females to work. The 1.2 crore SHGs, 
comprising of 88 per cent all women SHGs, cater to 14.2 crore households. 
On the human capital formation front, the twin pillars of education and health are being 
strengthened from the core. Within the progressive framework of the National Education 
Policy (NEP), the improvement in basic facilities in schools and the rising availability 
of teachers is expected to yield dividends which will enrich the nation’s growth and 
development prospects in the decades to come. The Government has also strengthened 
the health infrastructure and prepared itself to address present and future needs . 
Ensuring the provision of quality health facilities to citizens, the share of government 
health expenditure in total health expenditure has increased from 28.6 per cent in FY14 
to 40.6 per cent in FY19, with a concomitant decline in out-of-pocket expenditure as 
a percentage of total health expenditure from 64.2 per cent in FY14 to 48.2 per cent 
in FY19. Augmenting the rural public healthcare system, the number of Sub-centres, 
Primary Health Centres (PHCs), and Community Health Centres (CHCs) have improved 
substantially, along with a rise in doctors, nurses, and other medical personnel in the past 
eight years. Consequently, a host of health-related indicators such as institutional births, 
immunisation and, coverage of health insurance, have witnessed an uptrend, as borne 
out by National Family Health Survey (NFHS) data. The progress of the path-breaking 
Ayushman Bharat programme, with nearly 22 crore beneficiaries, is being further tech-
enabled through digital health IDs ‘ABHA’ and telemedicine through e-Sanjeevani. 
In the Amrit Kaal, the lives of two-thirds of the Indian populace residing in rural India look 
remarkably better than a few years back, aided by the policy focus on basic amenities and 
efficient programme implementation. Outcome-oriented statistics concerning the quality 
of rural lives establish tangible progress in access to electricity, presence of improved 
drinking water sources, coverage under health insurance schemes, women empowerment, 
etc. The emphasis on digital land records through SVAMITVA is structural reform in rural 
land management and individual economic empowerment. 
As India marches ahead, the ground lost as regards social sector improvements due to 
the pandemic has largely been recouped, powered by prompt policymaking and efficient 
implementation interwoven with technology. Going forward with the vision of ‘Minimum 
Government, Maximum Governance’, further developments will hold the key to attaining 
more equitable economic growth.
Page 3


CHAPTER
06
Post the massive, unexpected disruption to human lives caused by the global pandemic, 
the year 2022 was when humanity once again picked up the threads and took small steps 
to get back to a semblance of normalcy. However, the challenges posed by the aftermath 
of this crisis, subsequent waves of the pandemic and the ensuing Russia-Ukraine conflict 
have impacted the global as well as India’ s development trajectory. There was a stress on 
key aspects of social well being of citizens such as health, education and social security 
etc. and the Government stepped in to continue its support towards social infrastructure 
development. Standing on the brink of FY23, various indicators of social development 
appear to have recouped. Focus on long-term goals of human development and “sabka 
sath, sabka vikas” have assumed salience. The social sector expenditure outlay of the 
Centre and State Governments has increased steadily to stand at ?21.3 lakh crore in FY23 
(BE), with its share in total General Government expenditure standing at 26.6 per cent. 
Demonstrating the on-track progress to attain Sustainable Development Goal (SDG) of 
halving poverty by 2030, more than 41 crore people exited poverty between 2005-06 
and 2019-21 according to the UN Mutilidimensional Poverty Index. Bouquet of social 
protection schemes, customised for different sections of the population such as elderly, 
unorganised workers, have been prioritised ensuring a shield of dignity for every member 
of society. The special focus on aspirational districts has resulted in steady improvements 
across health, education, financial inclusion, and basic infrastructure. Transforming 
welfare through technology, Aadhaar and JAM trinity have revolutionalised the universe 
of state-citizen interaction, enabling targeted delivery of Direct Benefit Transfers (DBT) 
through 318 Central schemes and over 720 State DBT schemes, seamless portability of 
ration card across States through ‘One Nation One Ration Card’ and national database 
of unorganised workers ‘eShram portal’. The broad-based improvement in employment 
indicators is observed in data covering both the supply side and demand side of the  
labour market. 
Labour markets have recovered beyond pre-Covid levels, in both urban and rural 
areas, as observed in supply-side and demand-side employment data. Quarterly urban 
employment data shows progress beyond pre-pandemic levels as the unemployment rate 
declined from 8.3 per cent in July-September 2019 to 7.2 per cent in July-September 
2022. Reflecting rising formalisation of employment, net addition to EPFO payroll is 
steadily moving upward after swiftly rebounding from Covid-19, with the majority share 
coming from the youth. As per Annual Survey of Industries 2019-20, employment in the 
organised manufacturing sector has maintained a steady upward trend over time, with 
the employment per factory also increasing gradually. Employment has been rising faster 
Social infraStructure 
and employment: big tent
145 Social Infrastructure and Employment: Big Tent
in factories employing more than 100 workers than in smaller ones, suggesting scaling 
up of manufacturing units. Year-on-Year (YoY) decline in monthly demand for Mahatma 
Gandhi National Rural Employment Guarantee Scheme (MGNREGS) work is emanating 
from normalisation of the rural economy due to strong agricultural growth and a swift 
bounce-back from Covid-19. 
The noticeable rise in Rural Female Labour Force Participation Rate (FLFPR) from 
19.7 per cent in 2018-19 to 27.7 per cent in 2020-21 is a positive development. Notably, 
India’s female LFPR is likely to be underestimated, with reforms in survey design and 
content required to capture the reality of working females more accurately. Self-Help 
Groups (SHGs), having demonstrated their resilience and flexibility during Covid, can be 
an effective conduit to tap the rising willingness of females to work. The 1.2 crore SHGs, 
comprising of 88 per cent all women SHGs, cater to 14.2 crore households. 
On the human capital formation front, the twin pillars of education and health are being 
strengthened from the core. Within the progressive framework of the National Education 
Policy (NEP), the improvement in basic facilities in schools and the rising availability 
of teachers is expected to yield dividends which will enrich the nation’s growth and 
development prospects in the decades to come. The Government has also strengthened 
the health infrastructure and prepared itself to address present and future needs . 
Ensuring the provision of quality health facilities to citizens, the share of government 
health expenditure in total health expenditure has increased from 28.6 per cent in FY14 
to 40.6 per cent in FY19, with a concomitant decline in out-of-pocket expenditure as 
a percentage of total health expenditure from 64.2 per cent in FY14 to 48.2 per cent 
in FY19. Augmenting the rural public healthcare system, the number of Sub-centres, 
Primary Health Centres (PHCs), and Community Health Centres (CHCs) have improved 
substantially, along with a rise in doctors, nurses, and other medical personnel in the past 
eight years. Consequently, a host of health-related indicators such as institutional births, 
immunisation and, coverage of health insurance, have witnessed an uptrend, as borne 
out by National Family Health Survey (NFHS) data. The progress of the path-breaking 
Ayushman Bharat programme, with nearly 22 crore beneficiaries, is being further tech-
enabled through digital health IDs ‘ABHA’ and telemedicine through e-Sanjeevani. 
In the Amrit Kaal, the lives of two-thirds of the Indian populace residing in rural India look 
remarkably better than a few years back, aided by the policy focus on basic amenities and 
efficient programme implementation. Outcome-oriented statistics concerning the quality 
of rural lives establish tangible progress in access to electricity, presence of improved 
drinking water sources, coverage under health insurance schemes, women empowerment, 
etc. The emphasis on digital land records through SVAMITVA is structural reform in rural 
land management and individual economic empowerment. 
As India marches ahead, the ground lost as regards social sector improvements due to 
the pandemic has largely been recouped, powered by prompt policymaking and efficient 
implementation interwoven with technology. Going forward with the vision of ‘Minimum 
Government, Maximum Governance’, further developments will hold the key to attaining 
more equitable economic growth.
146 Economic Survey 2022-23
introduction
6.1 The socio-economic milieu and unique ethos of India reside in the diverse and expansive 
populace transcending innumerable cultures, languages, and geographies, constituting the 
real wealth of the country. Realising the immense potential harboured by the young and 
aspirational citizens spanning numerous cities and villages requires ambitious vision and 
meticulous implementation, customising for the diversity of circumstances and special needs 
of different sections. The foundational services and structures that support society in availing 
various amenities important for a better quality of life, i.e the social infrastructure, indirectly 
contributes to economic development by laying the foundation for enhancement in income and 
employment opportunities, productivity growth, and technological advancement. That said, 
quality employment opportunities and working conditions are the essential instruments to chisel 
this potential into long-term sustainable growth. In its Amrit Kaal for the next 25 years, India 
envisions rewarding itself with the dividends that can come from demographics.
6.2 With the overall development of the economy, the concept of quality of life has enlarged 
to include many more elements than the traditional metrics of income (which determine 
the availability of basic requirements such as food and shelter) and education levels. It now 
encompasses access to clean drinking water, sanitation, employment prospects, health care, 
social security, connectivity, etc. All these together determine the quality of life. Research 
studies have concluded that quality of life depends upon the fulfilment of basic needs and being 
able to live in an affable environment.
1
 Cognisant of this fact, the Government places a high 
priority on the development of the social infrastructure of the country. 
6.3 This is all the more pertinent in the contemporary scenario as India has adopted the UN 
SDGs 2030, which are a set of comprehensive, far-reaching, and people-centric universal and 
transformative goals and targets. Many of these seventeen goals concern the social well-being 
of individuals, resolving as follows:
“W e resolve, between now and 2030, to end poverty and hunger everywhere; to combat inequalities 
within and among countries; to build peaceful, just, and inclusive societies; to protect human 
rights and promote gender equality and the empowerment of women and girls; and to ensure the 
lasting protection of the planet and its natural resources. We resolve also to create conditions 
for sustainable, inclusive and sustained economic growth, shared prosperity and decent work 
for all, taking into account different levels of national development and capacities.”
2
6.4 The country continues to make good progress in increasing incomes and improving the 
standard of living over the past decades. As detailed in the chapter, many social indicators have 
continued to improve. The years 2020 and 2021 were the peak years of the pandemic, which 
tested the strength of the country’s social and health infrastructure, hampering education, loss 
of job opportunities, etc. Several measures were taken to meet the growing needs of the health 
pandemic during this time, extending into 2022. FY23 has been a year of rejuvenation for the 
sector, having withered the storm of the pandemic and come out stronger. Various dimensions 
of the sector are recouping lost grounds and are on the path of reenergising to meet the vision of 
“sabka sath, sabka vikas and sabka vishwas”.
1
 For example: Martha Nussbaum and Amartya Sen, ed. (1993). The Quality of Life, Oxford: Clarendon Press. and Barcaccia, Barbara (4 Sep-
tember 2013). “Quality of Life: Everyone Wants It, But What Is It?”. Forbes/ Education.
2
 Transforming our world: the 2030 Agenda for Sustainable Development, Resolution adopted by the General Assembly on 25 September 2015
Page 4


CHAPTER
06
Post the massive, unexpected disruption to human lives caused by the global pandemic, 
the year 2022 was when humanity once again picked up the threads and took small steps 
to get back to a semblance of normalcy. However, the challenges posed by the aftermath 
of this crisis, subsequent waves of the pandemic and the ensuing Russia-Ukraine conflict 
have impacted the global as well as India’ s development trajectory. There was a stress on 
key aspects of social well being of citizens such as health, education and social security 
etc. and the Government stepped in to continue its support towards social infrastructure 
development. Standing on the brink of FY23, various indicators of social development 
appear to have recouped. Focus on long-term goals of human development and “sabka 
sath, sabka vikas” have assumed salience. The social sector expenditure outlay of the 
Centre and State Governments has increased steadily to stand at ?21.3 lakh crore in FY23 
(BE), with its share in total General Government expenditure standing at 26.6 per cent. 
Demonstrating the on-track progress to attain Sustainable Development Goal (SDG) of 
halving poverty by 2030, more than 41 crore people exited poverty between 2005-06 
and 2019-21 according to the UN Mutilidimensional Poverty Index. Bouquet of social 
protection schemes, customised for different sections of the population such as elderly, 
unorganised workers, have been prioritised ensuring a shield of dignity for every member 
of society. The special focus on aspirational districts has resulted in steady improvements 
across health, education, financial inclusion, and basic infrastructure. Transforming 
welfare through technology, Aadhaar and JAM trinity have revolutionalised the universe 
of state-citizen interaction, enabling targeted delivery of Direct Benefit Transfers (DBT) 
through 318 Central schemes and over 720 State DBT schemes, seamless portability of 
ration card across States through ‘One Nation One Ration Card’ and national database 
of unorganised workers ‘eShram portal’. The broad-based improvement in employment 
indicators is observed in data covering both the supply side and demand side of the  
labour market. 
Labour markets have recovered beyond pre-Covid levels, in both urban and rural 
areas, as observed in supply-side and demand-side employment data. Quarterly urban 
employment data shows progress beyond pre-pandemic levels as the unemployment rate 
declined from 8.3 per cent in July-September 2019 to 7.2 per cent in July-September 
2022. Reflecting rising formalisation of employment, net addition to EPFO payroll is 
steadily moving upward after swiftly rebounding from Covid-19, with the majority share 
coming from the youth. As per Annual Survey of Industries 2019-20, employment in the 
organised manufacturing sector has maintained a steady upward trend over time, with 
the employment per factory also increasing gradually. Employment has been rising faster 
Social infraStructure 
and employment: big tent
145 Social Infrastructure and Employment: Big Tent
in factories employing more than 100 workers than in smaller ones, suggesting scaling 
up of manufacturing units. Year-on-Year (YoY) decline in monthly demand for Mahatma 
Gandhi National Rural Employment Guarantee Scheme (MGNREGS) work is emanating 
from normalisation of the rural economy due to strong agricultural growth and a swift 
bounce-back from Covid-19. 
The noticeable rise in Rural Female Labour Force Participation Rate (FLFPR) from 
19.7 per cent in 2018-19 to 27.7 per cent in 2020-21 is a positive development. Notably, 
India’s female LFPR is likely to be underestimated, with reforms in survey design and 
content required to capture the reality of working females more accurately. Self-Help 
Groups (SHGs), having demonstrated their resilience and flexibility during Covid, can be 
an effective conduit to tap the rising willingness of females to work. The 1.2 crore SHGs, 
comprising of 88 per cent all women SHGs, cater to 14.2 crore households. 
On the human capital formation front, the twin pillars of education and health are being 
strengthened from the core. Within the progressive framework of the National Education 
Policy (NEP), the improvement in basic facilities in schools and the rising availability 
of teachers is expected to yield dividends which will enrich the nation’s growth and 
development prospects in the decades to come. The Government has also strengthened 
the health infrastructure and prepared itself to address present and future needs . 
Ensuring the provision of quality health facilities to citizens, the share of government 
health expenditure in total health expenditure has increased from 28.6 per cent in FY14 
to 40.6 per cent in FY19, with a concomitant decline in out-of-pocket expenditure as 
a percentage of total health expenditure from 64.2 per cent in FY14 to 48.2 per cent 
in FY19. Augmenting the rural public healthcare system, the number of Sub-centres, 
Primary Health Centres (PHCs), and Community Health Centres (CHCs) have improved 
substantially, along with a rise in doctors, nurses, and other medical personnel in the past 
eight years. Consequently, a host of health-related indicators such as institutional births, 
immunisation and, coverage of health insurance, have witnessed an uptrend, as borne 
out by National Family Health Survey (NFHS) data. The progress of the path-breaking 
Ayushman Bharat programme, with nearly 22 crore beneficiaries, is being further tech-
enabled through digital health IDs ‘ABHA’ and telemedicine through e-Sanjeevani. 
In the Amrit Kaal, the lives of two-thirds of the Indian populace residing in rural India look 
remarkably better than a few years back, aided by the policy focus on basic amenities and 
efficient programme implementation. Outcome-oriented statistics concerning the quality 
of rural lives establish tangible progress in access to electricity, presence of improved 
drinking water sources, coverage under health insurance schemes, women empowerment, 
etc. The emphasis on digital land records through SVAMITVA is structural reform in rural 
land management and individual economic empowerment. 
As India marches ahead, the ground lost as regards social sector improvements due to 
the pandemic has largely been recouped, powered by prompt policymaking and efficient 
implementation interwoven with technology. Going forward with the vision of ‘Minimum 
Government, Maximum Governance’, further developments will hold the key to attaining 
more equitable economic growth.
146 Economic Survey 2022-23
introduction
6.1 The socio-economic milieu and unique ethos of India reside in the diverse and expansive 
populace transcending innumerable cultures, languages, and geographies, constituting the 
real wealth of the country. Realising the immense potential harboured by the young and 
aspirational citizens spanning numerous cities and villages requires ambitious vision and 
meticulous implementation, customising for the diversity of circumstances and special needs 
of different sections. The foundational services and structures that support society in availing 
various amenities important for a better quality of life, i.e the social infrastructure, indirectly 
contributes to economic development by laying the foundation for enhancement in income and 
employment opportunities, productivity growth, and technological advancement. That said, 
quality employment opportunities and working conditions are the essential instruments to chisel 
this potential into long-term sustainable growth. In its Amrit Kaal for the next 25 years, India 
envisions rewarding itself with the dividends that can come from demographics.
6.2 With the overall development of the economy, the concept of quality of life has enlarged 
to include many more elements than the traditional metrics of income (which determine 
the availability of basic requirements such as food and shelter) and education levels. It now 
encompasses access to clean drinking water, sanitation, employment prospects, health care, 
social security, connectivity, etc. All these together determine the quality of life. Research 
studies have concluded that quality of life depends upon the fulfilment of basic needs and being 
able to live in an affable environment.
1
 Cognisant of this fact, the Government places a high 
priority on the development of the social infrastructure of the country. 
6.3 This is all the more pertinent in the contemporary scenario as India has adopted the UN 
SDGs 2030, which are a set of comprehensive, far-reaching, and people-centric universal and 
transformative goals and targets. Many of these seventeen goals concern the social well-being 
of individuals, resolving as follows:
“W e resolve, between now and 2030, to end poverty and hunger everywhere; to combat inequalities 
within and among countries; to build peaceful, just, and inclusive societies; to protect human 
rights and promote gender equality and the empowerment of women and girls; and to ensure the 
lasting protection of the planet and its natural resources. We resolve also to create conditions 
for sustainable, inclusive and sustained economic growth, shared prosperity and decent work 
for all, taking into account different levels of national development and capacities.”
2
6.4 The country continues to make good progress in increasing incomes and improving the 
standard of living over the past decades. As detailed in the chapter, many social indicators have 
continued to improve. The years 2020 and 2021 were the peak years of the pandemic, which 
tested the strength of the country’s social and health infrastructure, hampering education, loss 
of job opportunities, etc. Several measures were taken to meet the growing needs of the health 
pandemic during this time, extending into 2022. FY23 has been a year of rejuvenation for the 
sector, having withered the storm of the pandemic and come out stronger. Various dimensions 
of the sector are recouping lost grounds and are on the path of reenergising to meet the vision of 
“sabka sath, sabka vikas and sabka vishwas”.
1
 For example: Martha Nussbaum and Amartya Sen, ed. (1993). The Quality of Life, Oxford: Clarendon Press. and Barcaccia, Barbara (4 Sep-
tember 2013). “Quality of Life: Everyone Wants It, But What Is It?”. Forbes/ Education.
2
 Transforming our world: the 2030 Agenda for Sustainable Development, Resolution adopted by the General Assembly on 25 September 2015
147 Social Infrastructure and Employment: Big Tent
6.5 India is entering the Amrit Kal with better-equipped schools, affordable healthcare, 
increasing formal employment, empowered women’s collectives, and far-reaching access to 
basic amenities such as sanitation, drinking water and electricity. This Chapter presents emerging 
evidence of the achievements on these fronts. It reviews the progress on the social infrastructure 
front and the enhancement of employment opportunities in the country. It covers various aspects 
of the social sector, including trends in the Government’s expenditure on the social sector; 
the progress on the human development front; multiple measures being taken to ensure basic 
necessities to all citizens; the trends in employment and education and measures to enhance 
the quality of life and governance in rural areas. It dwells on various Government initiatives 
towards attaining different SDGs and the outcomes thereof.
Social Sector expenditure Keeping pace with growing importance of the Sector
6.6 The Government’s spending on social services
3
 has shown a rising trend since FY16 
with a focus on many aspects of the social well-being of citizens of the country. The share of 
expenditure on social services in the total expenditure of the Government has been around 25 
per cent from FY18 to FY20. It increased to 26.6 per cent in FY23 (BE). The social services 
expenditure witnessed an increase of 8.4 per cent in FY21 over FY20 and another 31.4 per 
cent increase in FY22 over FY21, being the pandemic years, which required enhanced outlay, 
especially in the health
4
 and education
5
 sectors. While the social sector expenditure outlay of the 
Centre and State governments was `12.8 lakh crore in FY19, it has increased steadily to stand 
at `21.3 lakh crore in FY23 (BE). 
figure Vi.1: t rends in social service sector expenditure by general government 
(combined centre and States)
 
45.2
50.4
54.1
63.5
74.5
80.1
11.4
12.8
13.6
14.8
19.4
21.3
6.7 6.8 6.8
7.5
8.2 8.3
25.2 25.4 25.2
23.3
26.1
26.6
0
5
10
15
20
25
30
10
20
30
40
50
60
70
80
90
2017-18 2018-19 2019-20 2020-21 2021-22  RE 2022-23 BE
per cent
? in lakh crore 
Total Expenditure (in lakh crore)
Expenditure on Social Services (in lakh crore)
Expenditure on  Social Services (as % of GDP)
Expenditure on Social Services (as % of total expenditure)
Source: Reserve Bank of India, Budget Documents of Union and State Governments.
Note: 1. Budget Estimate (BE) & Revised Estimate (RE).
    2.  The ratios to Gross Domestic Product (GDP) at current market prices are based on the 2011-12 
base.
    3. Projected GDP for BE FY22 is `222,87,379 crore.
3
 Social services include education, sports, art, and culture; medical and public health, family welfare; water supply and sanitation; housing; 
urban development; the welfare of SCs, STs and OBCs, labour and labour welfare; social security and welfare, nutrition, relief on account of 
natural calamities, etc.
4
 Expenditure on ‘Health’ includes expenditure on ‘Medical and Public Health’, ‘Family Welfare’, and ‘Water Supply and Sanitation. 
5
 Expenditure on ‘Education’ pertains to expenditure on ‘Education, Sports, Arts, and culture.
Page 5


CHAPTER
06
Post the massive, unexpected disruption to human lives caused by the global pandemic, 
the year 2022 was when humanity once again picked up the threads and took small steps 
to get back to a semblance of normalcy. However, the challenges posed by the aftermath 
of this crisis, subsequent waves of the pandemic and the ensuing Russia-Ukraine conflict 
have impacted the global as well as India’ s development trajectory. There was a stress on 
key aspects of social well being of citizens such as health, education and social security 
etc. and the Government stepped in to continue its support towards social infrastructure 
development. Standing on the brink of FY23, various indicators of social development 
appear to have recouped. Focus on long-term goals of human development and “sabka 
sath, sabka vikas” have assumed salience. The social sector expenditure outlay of the 
Centre and State Governments has increased steadily to stand at ?21.3 lakh crore in FY23 
(BE), with its share in total General Government expenditure standing at 26.6 per cent. 
Demonstrating the on-track progress to attain Sustainable Development Goal (SDG) of 
halving poverty by 2030, more than 41 crore people exited poverty between 2005-06 
and 2019-21 according to the UN Mutilidimensional Poverty Index. Bouquet of social 
protection schemes, customised for different sections of the population such as elderly, 
unorganised workers, have been prioritised ensuring a shield of dignity for every member 
of society. The special focus on aspirational districts has resulted in steady improvements 
across health, education, financial inclusion, and basic infrastructure. Transforming 
welfare through technology, Aadhaar and JAM trinity have revolutionalised the universe 
of state-citizen interaction, enabling targeted delivery of Direct Benefit Transfers (DBT) 
through 318 Central schemes and over 720 State DBT schemes, seamless portability of 
ration card across States through ‘One Nation One Ration Card’ and national database 
of unorganised workers ‘eShram portal’. The broad-based improvement in employment 
indicators is observed in data covering both the supply side and demand side of the  
labour market. 
Labour markets have recovered beyond pre-Covid levels, in both urban and rural 
areas, as observed in supply-side and demand-side employment data. Quarterly urban 
employment data shows progress beyond pre-pandemic levels as the unemployment rate 
declined from 8.3 per cent in July-September 2019 to 7.2 per cent in July-September 
2022. Reflecting rising formalisation of employment, net addition to EPFO payroll is 
steadily moving upward after swiftly rebounding from Covid-19, with the majority share 
coming from the youth. As per Annual Survey of Industries 2019-20, employment in the 
organised manufacturing sector has maintained a steady upward trend over time, with 
the employment per factory also increasing gradually. Employment has been rising faster 
Social infraStructure 
and employment: big tent
145 Social Infrastructure and Employment: Big Tent
in factories employing more than 100 workers than in smaller ones, suggesting scaling 
up of manufacturing units. Year-on-Year (YoY) decline in monthly demand for Mahatma 
Gandhi National Rural Employment Guarantee Scheme (MGNREGS) work is emanating 
from normalisation of the rural economy due to strong agricultural growth and a swift 
bounce-back from Covid-19. 
The noticeable rise in Rural Female Labour Force Participation Rate (FLFPR) from 
19.7 per cent in 2018-19 to 27.7 per cent in 2020-21 is a positive development. Notably, 
India’s female LFPR is likely to be underestimated, with reforms in survey design and 
content required to capture the reality of working females more accurately. Self-Help 
Groups (SHGs), having demonstrated their resilience and flexibility during Covid, can be 
an effective conduit to tap the rising willingness of females to work. The 1.2 crore SHGs, 
comprising of 88 per cent all women SHGs, cater to 14.2 crore households. 
On the human capital formation front, the twin pillars of education and health are being 
strengthened from the core. Within the progressive framework of the National Education 
Policy (NEP), the improvement in basic facilities in schools and the rising availability 
of teachers is expected to yield dividends which will enrich the nation’s growth and 
development prospects in the decades to come. The Government has also strengthened 
the health infrastructure and prepared itself to address present and future needs . 
Ensuring the provision of quality health facilities to citizens, the share of government 
health expenditure in total health expenditure has increased from 28.6 per cent in FY14 
to 40.6 per cent in FY19, with a concomitant decline in out-of-pocket expenditure as 
a percentage of total health expenditure from 64.2 per cent in FY14 to 48.2 per cent 
in FY19. Augmenting the rural public healthcare system, the number of Sub-centres, 
Primary Health Centres (PHCs), and Community Health Centres (CHCs) have improved 
substantially, along with a rise in doctors, nurses, and other medical personnel in the past 
eight years. Consequently, a host of health-related indicators such as institutional births, 
immunisation and, coverage of health insurance, have witnessed an uptrend, as borne 
out by National Family Health Survey (NFHS) data. The progress of the path-breaking 
Ayushman Bharat programme, with nearly 22 crore beneficiaries, is being further tech-
enabled through digital health IDs ‘ABHA’ and telemedicine through e-Sanjeevani. 
In the Amrit Kaal, the lives of two-thirds of the Indian populace residing in rural India look 
remarkably better than a few years back, aided by the policy focus on basic amenities and 
efficient programme implementation. Outcome-oriented statistics concerning the quality 
of rural lives establish tangible progress in access to electricity, presence of improved 
drinking water sources, coverage under health insurance schemes, women empowerment, 
etc. The emphasis on digital land records through SVAMITVA is structural reform in rural 
land management and individual economic empowerment. 
As India marches ahead, the ground lost as regards social sector improvements due to 
the pandemic has largely been recouped, powered by prompt policymaking and efficient 
implementation interwoven with technology. Going forward with the vision of ‘Minimum 
Government, Maximum Governance’, further developments will hold the key to attaining 
more equitable economic growth.
146 Economic Survey 2022-23
introduction
6.1 The socio-economic milieu and unique ethos of India reside in the diverse and expansive 
populace transcending innumerable cultures, languages, and geographies, constituting the 
real wealth of the country. Realising the immense potential harboured by the young and 
aspirational citizens spanning numerous cities and villages requires ambitious vision and 
meticulous implementation, customising for the diversity of circumstances and special needs 
of different sections. The foundational services and structures that support society in availing 
various amenities important for a better quality of life, i.e the social infrastructure, indirectly 
contributes to economic development by laying the foundation for enhancement in income and 
employment opportunities, productivity growth, and technological advancement. That said, 
quality employment opportunities and working conditions are the essential instruments to chisel 
this potential into long-term sustainable growth. In its Amrit Kaal for the next 25 years, India 
envisions rewarding itself with the dividends that can come from demographics.
6.2 With the overall development of the economy, the concept of quality of life has enlarged 
to include many more elements than the traditional metrics of income (which determine 
the availability of basic requirements such as food and shelter) and education levels. It now 
encompasses access to clean drinking water, sanitation, employment prospects, health care, 
social security, connectivity, etc. All these together determine the quality of life. Research 
studies have concluded that quality of life depends upon the fulfilment of basic needs and being 
able to live in an affable environment.
1
 Cognisant of this fact, the Government places a high 
priority on the development of the social infrastructure of the country. 
6.3 This is all the more pertinent in the contemporary scenario as India has adopted the UN 
SDGs 2030, which are a set of comprehensive, far-reaching, and people-centric universal and 
transformative goals and targets. Many of these seventeen goals concern the social well-being 
of individuals, resolving as follows:
“W e resolve, between now and 2030, to end poverty and hunger everywhere; to combat inequalities 
within and among countries; to build peaceful, just, and inclusive societies; to protect human 
rights and promote gender equality and the empowerment of women and girls; and to ensure the 
lasting protection of the planet and its natural resources. We resolve also to create conditions 
for sustainable, inclusive and sustained economic growth, shared prosperity and decent work 
for all, taking into account different levels of national development and capacities.”
2
6.4 The country continues to make good progress in increasing incomes and improving the 
standard of living over the past decades. As detailed in the chapter, many social indicators have 
continued to improve. The years 2020 and 2021 were the peak years of the pandemic, which 
tested the strength of the country’s social and health infrastructure, hampering education, loss 
of job opportunities, etc. Several measures were taken to meet the growing needs of the health 
pandemic during this time, extending into 2022. FY23 has been a year of rejuvenation for the 
sector, having withered the storm of the pandemic and come out stronger. Various dimensions 
of the sector are recouping lost grounds and are on the path of reenergising to meet the vision of 
“sabka sath, sabka vikas and sabka vishwas”.
1
 For example: Martha Nussbaum and Amartya Sen, ed. (1993). The Quality of Life, Oxford: Clarendon Press. and Barcaccia, Barbara (4 Sep-
tember 2013). “Quality of Life: Everyone Wants It, But What Is It?”. Forbes/ Education.
2
 Transforming our world: the 2030 Agenda for Sustainable Development, Resolution adopted by the General Assembly on 25 September 2015
147 Social Infrastructure and Employment: Big Tent
6.5 India is entering the Amrit Kal with better-equipped schools, affordable healthcare, 
increasing formal employment, empowered women’s collectives, and far-reaching access to 
basic amenities such as sanitation, drinking water and electricity. This Chapter presents emerging 
evidence of the achievements on these fronts. It reviews the progress on the social infrastructure 
front and the enhancement of employment opportunities in the country. It covers various aspects 
of the social sector, including trends in the Government’s expenditure on the social sector; 
the progress on the human development front; multiple measures being taken to ensure basic 
necessities to all citizens; the trends in employment and education and measures to enhance 
the quality of life and governance in rural areas. It dwells on various Government initiatives 
towards attaining different SDGs and the outcomes thereof.
Social Sector expenditure Keeping pace with growing importance of the Sector
6.6 The Government’s spending on social services
3
 has shown a rising trend since FY16 
with a focus on many aspects of the social well-being of citizens of the country. The share of 
expenditure on social services in the total expenditure of the Government has been around 25 
per cent from FY18 to FY20. It increased to 26.6 per cent in FY23 (BE). The social services 
expenditure witnessed an increase of 8.4 per cent in FY21 over FY20 and another 31.4 per 
cent increase in FY22 over FY21, being the pandemic years, which required enhanced outlay, 
especially in the health
4
 and education
5
 sectors. While the social sector expenditure outlay of the 
Centre and State governments was `12.8 lakh crore in FY19, it has increased steadily to stand 
at `21.3 lakh crore in FY23 (BE). 
figure Vi.1: t rends in social service sector expenditure by general government 
(combined centre and States)
 
45.2
50.4
54.1
63.5
74.5
80.1
11.4
12.8
13.6
14.8
19.4
21.3
6.7 6.8 6.8
7.5
8.2 8.3
25.2 25.4 25.2
23.3
26.1
26.6
0
5
10
15
20
25
30
10
20
30
40
50
60
70
80
90
2017-18 2018-19 2019-20 2020-21 2021-22  RE 2022-23 BE
per cent
? in lakh crore 
Total Expenditure (in lakh crore)
Expenditure on Social Services (in lakh crore)
Expenditure on  Social Services (as % of GDP)
Expenditure on Social Services (as % of total expenditure)
Source: Reserve Bank of India, Budget Documents of Union and State Governments.
Note: 1. Budget Estimate (BE) & Revised Estimate (RE).
    2.  The ratios to Gross Domestic Product (GDP) at current market prices are based on the 2011-12 
base.
    3. Projected GDP for BE FY22 is `222,87,379 crore.
3
 Social services include education, sports, art, and culture; medical and public health, family welfare; water supply and sanitation; housing; 
urban development; the welfare of SCs, STs and OBCs, labour and labour welfare; social security and welfare, nutrition, relief on account of 
natural calamities, etc.
4
 Expenditure on ‘Health’ includes expenditure on ‘Medical and Public Health’, ‘Family Welfare’, and ‘Water Supply and Sanitation. 
5
 Expenditure on ‘Education’ pertains to expenditure on ‘Education, Sports, Arts, and culture.
148 Economic Survey 2022-23
6.7 The share of expenditure on health in the total expenditure on social services, has increased 
from 21 per cent in FY19 to 26 per cent in FY23 (BE). The National Health Policy, 2017 
envisages as its goal “the attainment of the highest possible level of health and well-being for 
all at all ages, through a preventive and promotive healthcare orientation in all developmental 
policies, and universal access to good quality healthcare services without anyone having to 
face financial hardship as a consequence. This would be achieved through increasing access, 
improving quality, and lowering the cost of healthcare delivery.” Accordingly, the policy 
recommended an increase in the Government’s health expenditure from the existing 1.2 per 
cent to 2.5 per cent of GDP by 2025. Also, the Fifteenth Finance Commission, in its report, had 
recommended that public health expenditure of Union and States together should be increased 
in a progressive manner to reach 2.5 per cent of GDP by 2025 (FFC report, para 9.41, iii). In 
keeping with this objective, Central and State Governments’ budgeted expenditure on the health 
sector reached 2.1 per cent of GDP in FY23 (BE) and 2.2 per cent in FY22 (RE), against 1.6 per 
cent in FY21.
t able Vi.1: t rends in social services expenditure by general government 
(combined centre and States)
(` crore)
items 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 re 2022-23 be
t otal expenditure 3760611 4265969 4515946 5040747 5410887 6353359 7453320 8008684
expenditure on Social 
Services
915500 1040620 1139524 1278124 1364906 1479389 1944013 2132059
of which:
 Education 391881 434974 483481 526481 579575 575834 681396 757138
Health 175272 213119 243388 265813 272648 317687 516427 548855
Others 348348 392527 412655 485829 512683 585868 746191 826065
as per cent of gdp
expenditure on Social 
Services
6.6 6.8 6.7 6.8 6.8 7.5 8.2 8.3
of which:
Education 2.8 2.8 2.8 2.8 2.9 2.9 2.9 2.9
 Health 1.3 1.4 1.4 1.4 1.4 1.6 2.2 2.1
Others 2.5 2.6 2.4 2.6 2.6 3.0 3.2 3.2
as per cent of total expenditure
expenditure on Social 
Services
24.3 24.4 25.2 25.4 25.2 23.3 26.1 26.6
of which: 
Education 10.4 10.2 10.7 10.4 10.7 9.1 9.1 9.5
Health 4.7 5.0 5.4 5.3 5.0 5.0 6.9 6.9
Others 9.3 9.2 9.1 9.6 9.5 9.2 10.0 10.3
as per cent of social services
 education 42.8 41.8 42.4 41.2 42.5 38.9 35.1 35.5
Health 19.1 20.5 21.4 20.8 20.0 21.5 26.6 25.7
others 38.0 37.7 36.2 38.0 37.6 39.6 38.4 38.7
The ratios to GDP at current market prices are based on 2011-12 base till 2021-22. 
GDP for 2022-23 is as per Union Budget 2022-23.
Sources: Budget Documents of Union and State Governments.