Social Sector: Benefits that Empower | Indian Economy for UPSC CSE PDF Download

 Page 1


CHAPTER
07
SOCIAL SECTOR: BENEFITS 
THAT EMPOWER
India’s high and sustained economic growth in recent years is being accompanied 
by social and institutional progress, underpinned by transformational and effective 
implementation of Government programmes with an empowering edge that has 
become the hallmark of a transformed approach to welfare. Be it health, education, 
sanitation, digital empowerment, or quality of life in rural areas, each aspect of the 
social infrastructure ecosystem has made strides through effective planning and 
delivery of various welfare schemes. The outcomes and success stories of the endeavours 
being made by the Government to ensure ease of living for one and all are evident. The 
realms of health and education are witnessing turning points in quality and access. 
Women-led development is being promoted with 360-degree enabling interventions for 
socioeconomic empowerment. A slew of programmes for transparent and digitalised 
rural governance have accompanied a perceptible improvement in the standard of 
living. To attain the much-avowed status of a developed country by 2047, effective and 
efficient Government programmes and state-level initiatives, augmented by community 
participation, are key.
INTRODUCTION
7.1 India is on the path to scaling the next level of the development ladder to a ‘Developed 
India’ step by 2047 (ViksitBharat@2047). Economic growth is a pathway to achieve the end 
goal of development comprising economic, social, technological, and institutional progress. 
However, the direction of public policy and its implementation are also instrumental in 
translating growth to across-the-board human development. Home to 18 per cent of humanity
1
, 
India’s social infrastructure must reach a diverse and expansive populace, transcending 
cultures, languages, and geographies. Boasting a young and aspirational society, India aims 
to seize the opportunities provided by steady and high economic growth while also ensuring 
a society characterised by better health care, education, clean water, sanitation facilities, 
affordable housing, electricity, and the internet. A vast amount of ground has been covered to 
ensure sustainable and equitable economic growth and the journey continues with challenges, 
old and new, as well as solutions, centralised and local. 
7.2 Over the last decade, the Indian concept of welfare has been significantly transformed into 
a more long-term-oriented, efficient, and empowering avatar. This has further strengthened 
the welfare ecosystem and helped lay a solid foundation for human development in the country. 
1 UN estimate https://www.un.org/en/global-issues/population
Page 2


CHAPTER
07
SOCIAL SECTOR: BENEFITS 
THAT EMPOWER
India’s high and sustained economic growth in recent years is being accompanied 
by social and institutional progress, underpinned by transformational and effective 
implementation of Government programmes with an empowering edge that has 
become the hallmark of a transformed approach to welfare. Be it health, education, 
sanitation, digital empowerment, or quality of life in rural areas, each aspect of the 
social infrastructure ecosystem has made strides through effective planning and 
delivery of various welfare schemes. The outcomes and success stories of the endeavours 
being made by the Government to ensure ease of living for one and all are evident. The 
realms of health and education are witnessing turning points in quality and access. 
Women-led development is being promoted with 360-degree enabling interventions for 
socioeconomic empowerment. A slew of programmes for transparent and digitalised 
rural governance have accompanied a perceptible improvement in the standard of 
living. To attain the much-avowed status of a developed country by 2047, effective and 
efficient Government programmes and state-level initiatives, augmented by community 
participation, are key.
INTRODUCTION
7.1 India is on the path to scaling the next level of the development ladder to a ‘Developed 
India’ step by 2047 (ViksitBharat@2047). Economic growth is a pathway to achieve the end 
goal of development comprising economic, social, technological, and institutional progress. 
However, the direction of public policy and its implementation are also instrumental in 
translating growth to across-the-board human development. Home to 18 per cent of humanity
1
, 
India’s social infrastructure must reach a diverse and expansive populace, transcending 
cultures, languages, and geographies. Boasting a young and aspirational society, India aims 
to seize the opportunities provided by steady and high economic growth while also ensuring 
a society characterised by better health care, education, clean water, sanitation facilities, 
affordable housing, electricity, and the internet. A vast amount of ground has been covered to 
ensure sustainable and equitable economic growth and the journey continues with challenges, 
old and new, as well as solutions, centralised and local. 
7.2 Over the last decade, the Indian concept of welfare has been significantly transformed into 
a more long-term-oriented, efficient, and empowering avatar. This has further strengthened 
the welfare ecosystem and helped lay a solid foundation for human development in the country. 
1 UN estimate https://www.un.org/en/global-issues/population
Economic Survey 2023-24
210
Besides, the Government’s social sector expenditure has been keeping pace with the sector’s 
growing importance. The Government’s spending on social services has shown a rising trend 
since FY16, with a focus on many aspects of the social well-being of citizens of the country, as 
evident from Table VII.1. Between FY18 and FY24, nominal GDP has grown at a compounded 
annual growth rate (CAGR) of around 9.5 per cent. Overall, welfare expenditure has grown at 
a CAGR of 12.8 per cent. Expenditure on education has grown at a CAGR of 9.4 per cent- a tad 
below the rate of nominal GDP growth. Expenditure on health, as shown in the Table below, 
has grown at a CAGR of 15.8 per cent.
Table VII.1 Trends in social services expenditure by general Government 
(Combined Centre and States)
(? crore)
Items 2017-18 2018-19 2019-20 2020-21 2021-22
2022-23 
(RE)
2023-24 
(BE)
Total 
Expenditure
45,15,946 50,40,747 54,10,887 63,53,359 70,98,451 83,76,972 90,45,119
Expenditure 
on Social 
Services
2
11,39,524 12,78,124 13,64,906 14,79,389 17,87,019 21,49,346 23,50,584
of which:       
Education
3
4,83,481 5,26,481 5,79,575 5,75,834 6,39,436 7,68,946 8,28,747
Education 
(MoE’s 
estimates)*
6,621,51 7,36,581 8,63,118 
(RE)
9,19,145 
(BE)
Health
4
2,43,388 2,65,813 2,72,648 3,17,687 4,56,109 5,12,742 5,85,706
Others 4,12,655 4,85,829 5,12,683 5,85,868 6,91,474 8,67,659 9,36,131
As per cent of GDP
Expenditure on 
Social Services
6.7 6.8 6.8 7.5 7.6 8.0 7.8
of which: 
Education 2.8 2.8 2.9 2.9 2.7 2.9 2.7
Education 
(MoE’s 
estimates)*
3.9 3.9 4.3 
(RE)
4.6 
(BE)
Health 1.4 1.4 1.4 1.6 1.9 1.9 1.9
Others 2.4 2.6 2.6 3.0 2.9 3.2 3.1
2  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.
3 Expenditure on ‘Education’ pertains to expenditure on ‘Education, Sports, Arts, and culture.
4  Expenditure on ‘Health’ includes expenditure on ‘Medical and Public Health’, ‘Family Welfare’, and ‘Water Supply 
and Sanitation. 
Page 3


CHAPTER
07
SOCIAL SECTOR: BENEFITS 
THAT EMPOWER
India’s high and sustained economic growth in recent years is being accompanied 
by social and institutional progress, underpinned by transformational and effective 
implementation of Government programmes with an empowering edge that has 
become the hallmark of a transformed approach to welfare. Be it health, education, 
sanitation, digital empowerment, or quality of life in rural areas, each aspect of the 
social infrastructure ecosystem has made strides through effective planning and 
delivery of various welfare schemes. The outcomes and success stories of the endeavours 
being made by the Government to ensure ease of living for one and all are evident. The 
realms of health and education are witnessing turning points in quality and access. 
Women-led development is being promoted with 360-degree enabling interventions for 
socioeconomic empowerment. A slew of programmes for transparent and digitalised 
rural governance have accompanied a perceptible improvement in the standard of 
living. To attain the much-avowed status of a developed country by 2047, effective and 
efficient Government programmes and state-level initiatives, augmented by community 
participation, are key.
INTRODUCTION
7.1 India is on the path to scaling the next level of the development ladder to a ‘Developed 
India’ step by 2047 (ViksitBharat@2047). Economic growth is a pathway to achieve the end 
goal of development comprising economic, social, technological, and institutional progress. 
However, the direction of public policy and its implementation are also instrumental in 
translating growth to across-the-board human development. Home to 18 per cent of humanity
1
, 
India’s social infrastructure must reach a diverse and expansive populace, transcending 
cultures, languages, and geographies. Boasting a young and aspirational society, India aims 
to seize the opportunities provided by steady and high economic growth while also ensuring 
a society characterised by better health care, education, clean water, sanitation facilities, 
affordable housing, electricity, and the internet. A vast amount of ground has been covered to 
ensure sustainable and equitable economic growth and the journey continues with challenges, 
old and new, as well as solutions, centralised and local. 
7.2 Over the last decade, the Indian concept of welfare has been significantly transformed into 
a more long-term-oriented, efficient, and empowering avatar. This has further strengthened 
the welfare ecosystem and helped lay a solid foundation for human development in the country. 
1 UN estimate https://www.un.org/en/global-issues/population
Economic Survey 2023-24
210
Besides, the Government’s social sector expenditure has been keeping pace with the sector’s 
growing importance. The Government’s spending on social services has shown a rising trend 
since FY16, with a focus on many aspects of the social well-being of citizens of the country, as 
evident from Table VII.1. Between FY18 and FY24, nominal GDP has grown at a compounded 
annual growth rate (CAGR) of around 9.5 per cent. Overall, welfare expenditure has grown at 
a CAGR of 12.8 per cent. Expenditure on education has grown at a CAGR of 9.4 per cent- a tad 
below the rate of nominal GDP growth. Expenditure on health, as shown in the Table below, 
has grown at a CAGR of 15.8 per cent.
Table VII.1 Trends in social services expenditure by general Government 
(Combined Centre and States)
(? crore)
Items 2017-18 2018-19 2019-20 2020-21 2021-22
2022-23 
(RE)
2023-24 
(BE)
Total 
Expenditure
45,15,946 50,40,747 54,10,887 63,53,359 70,98,451 83,76,972 90,45,119
Expenditure 
on Social 
Services
2
11,39,524 12,78,124 13,64,906 14,79,389 17,87,019 21,49,346 23,50,584
of which:       
Education
3
4,83,481 5,26,481 5,79,575 5,75,834 6,39,436 7,68,946 8,28,747
Education 
(MoE’s 
estimates)*
6,621,51 7,36,581 8,63,118 
(RE)
9,19,145 
(BE)
Health
4
2,43,388 2,65,813 2,72,648 3,17,687 4,56,109 5,12,742 5,85,706
Others 4,12,655 4,85,829 5,12,683 5,85,868 6,91,474 8,67,659 9,36,131
As per cent of GDP
Expenditure on 
Social Services
6.7 6.8 6.8 7.5 7.6 8.0 7.8
of which: 
Education 2.8 2.8 2.9 2.9 2.7 2.9 2.7
Education 
(MoE’s 
estimates)*
3.9 3.9 4.3 
(RE)
4.6 
(BE)
Health 1.4 1.4 1.4 1.6 1.9 1.9 1.9
Others 2.4 2.6 2.6 3.0 2.9 3.2 3.1
2  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.
3 Expenditure on ‘Education’ pertains to expenditure on ‘Education, Sports, Arts, and culture.
4  Expenditure on ‘Health’ includes expenditure on ‘Medical and Public Health’, ‘Family Welfare’, and ‘Water Supply 
and Sanitation. 
Social Sector
211
Items 2017-18 2018-19 2019-20 2020-21 2021-22
2022-23 
(RE)
2023-24 
(BE)
As per cent of total expenditure
Expenditure on 
Social Services
25.2 25.4 25.2 23.3 25.2 25.7 26.0
of which: 
 Education 10.7 10.4 10.7 9.1 9.0 9.2 9.2
 Health 5.4 5.3 5.0 5.0 6.4 6.1 6.5
Others 9.1 9.6 9.5 9.2 9.7 10.4 10.3
As per cent of social services
Education 42.4 41.2 42.5 38.9 35.8 35.8 35.3
Health 21.4 20.8 20.0 21.5 25.5 23.9 24.9
Others 36.2 38.0 37.6 39.6 38.7 40.4 39.8
Source: RBI
Note: (i) The ratios to GDP at current market prices are based on 2011-12 base till 2021-22. GDP for 2022-23 is as 
per the Union Budget 2022-23.
(ii) * The Ministry of Education (MoE), Government of India, also calculates the General Government spending 
on education. While RBI’s data on Education expenditure incorporates the spending incurred by Centre and 
States on ‘Education, Sports, Arts, and culture, MoE’s estimates also include expenditure incurred on medical 
and public health education, agriculture research and education, welfare of SC, ST, OBC & Minority’s education, 
other scientific research & development, Education under social security, Nutritious food expenditure under mid-
day meal, expenditure on imparting training to police, Labour employment and skill development expenditure, 
education/training expenditure under rural development Programmes etc. This leads to a higher estimate of 
expenditure on education, which is 4.64 per cent of GDP in 2020-21 (latest available).
7.3 This chapter presents the impact of the high economic growth in recent years on the 
citizens of the country. Section I discusses some critical outcomes in the overarching area of the 
standard of living of the populace. Some key areas, such as health, and education, are covered 
in some detail. In light of the emphasis on Nari Shakti, Section II dwells on the rising women 
power in the country and the active role of Government policies and programmes in this 
regard. A large population of the country resides in rural India. The developments happening 
at the grassroots level and the role of Government policies and programmes for rural India are 
presented in Section III. 
DOVETAILING GROWTH WITH EMPOWERING WELFARE:  
A PARADIGM SHIFT
7.4 Demchok village in Leh, located at a height of 13,800 feet where mercury can drop up to 
minus 40 degrees, got its first tap water connection in July 2022 under the Jal Jeevan Mission, 
freeing up women from the drudgery of fetching water. A remote tribal village of Bulumgavan 
in Maharashtra received electric supply only in 2018, 70 years after independence! 
7.5 There are numerous such stories of the common citizens reaping the harvest of the 
Government’s empowering approach to welfare. With India becoming the fifth largest economy, 
Page 4


CHAPTER
07
SOCIAL SECTOR: BENEFITS 
THAT EMPOWER
India’s high and sustained economic growth in recent years is being accompanied 
by social and institutional progress, underpinned by transformational and effective 
implementation of Government programmes with an empowering edge that has 
become the hallmark of a transformed approach to welfare. Be it health, education, 
sanitation, digital empowerment, or quality of life in rural areas, each aspect of the 
social infrastructure ecosystem has made strides through effective planning and 
delivery of various welfare schemes. The outcomes and success stories of the endeavours 
being made by the Government to ensure ease of living for one and all are evident. The 
realms of health and education are witnessing turning points in quality and access. 
Women-led development is being promoted with 360-degree enabling interventions for 
socioeconomic empowerment. A slew of programmes for transparent and digitalised 
rural governance have accompanied a perceptible improvement in the standard of 
living. To attain the much-avowed status of a developed country by 2047, effective and 
efficient Government programmes and state-level initiatives, augmented by community 
participation, are key.
INTRODUCTION
7.1 India is on the path to scaling the next level of the development ladder to a ‘Developed 
India’ step by 2047 (ViksitBharat@2047). Economic growth is a pathway to achieve the end 
goal of development comprising economic, social, technological, and institutional progress. 
However, the direction of public policy and its implementation are also instrumental in 
translating growth to across-the-board human development. Home to 18 per cent of humanity
1
, 
India’s social infrastructure must reach a diverse and expansive populace, transcending 
cultures, languages, and geographies. Boasting a young and aspirational society, India aims 
to seize the opportunities provided by steady and high economic growth while also ensuring 
a society characterised by better health care, education, clean water, sanitation facilities, 
affordable housing, electricity, and the internet. A vast amount of ground has been covered to 
ensure sustainable and equitable economic growth and the journey continues with challenges, 
old and new, as well as solutions, centralised and local. 
7.2 Over the last decade, the Indian concept of welfare has been significantly transformed into 
a more long-term-oriented, efficient, and empowering avatar. This has further strengthened 
the welfare ecosystem and helped lay a solid foundation for human development in the country. 
1 UN estimate https://www.un.org/en/global-issues/population
Economic Survey 2023-24
210
Besides, the Government’s social sector expenditure has been keeping pace with the sector’s 
growing importance. The Government’s spending on social services has shown a rising trend 
since FY16, with a focus on many aspects of the social well-being of citizens of the country, as 
evident from Table VII.1. Between FY18 and FY24, nominal GDP has grown at a compounded 
annual growth rate (CAGR) of around 9.5 per cent. Overall, welfare expenditure has grown at 
a CAGR of 12.8 per cent. Expenditure on education has grown at a CAGR of 9.4 per cent- a tad 
below the rate of nominal GDP growth. Expenditure on health, as shown in the Table below, 
has grown at a CAGR of 15.8 per cent.
Table VII.1 Trends in social services expenditure by general Government 
(Combined Centre and States)
(? crore)
Items 2017-18 2018-19 2019-20 2020-21 2021-22
2022-23 
(RE)
2023-24 
(BE)
Total 
Expenditure
45,15,946 50,40,747 54,10,887 63,53,359 70,98,451 83,76,972 90,45,119
Expenditure 
on Social 
Services
2
11,39,524 12,78,124 13,64,906 14,79,389 17,87,019 21,49,346 23,50,584
of which:       
Education
3
4,83,481 5,26,481 5,79,575 5,75,834 6,39,436 7,68,946 8,28,747
Education 
(MoE’s 
estimates)*
6,621,51 7,36,581 8,63,118 
(RE)
9,19,145 
(BE)
Health
4
2,43,388 2,65,813 2,72,648 3,17,687 4,56,109 5,12,742 5,85,706
Others 4,12,655 4,85,829 5,12,683 5,85,868 6,91,474 8,67,659 9,36,131
As per cent of GDP
Expenditure on 
Social Services
6.7 6.8 6.8 7.5 7.6 8.0 7.8
of which: 
Education 2.8 2.8 2.9 2.9 2.7 2.9 2.7
Education 
(MoE’s 
estimates)*
3.9 3.9 4.3 
(RE)
4.6 
(BE)
Health 1.4 1.4 1.4 1.6 1.9 1.9 1.9
Others 2.4 2.6 2.6 3.0 2.9 3.2 3.1
2  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.
3 Expenditure on ‘Education’ pertains to expenditure on ‘Education, Sports, Arts, and culture.
4  Expenditure on ‘Health’ includes expenditure on ‘Medical and Public Health’, ‘Family Welfare’, and ‘Water Supply 
and Sanitation. 
Social Sector
211
Items 2017-18 2018-19 2019-20 2020-21 2021-22
2022-23 
(RE)
2023-24 
(BE)
As per cent of total expenditure
Expenditure on 
Social Services
25.2 25.4 25.2 23.3 25.2 25.7 26.0
of which: 
 Education 10.7 10.4 10.7 9.1 9.0 9.2 9.2
 Health 5.4 5.3 5.0 5.0 6.4 6.1 6.5
Others 9.1 9.6 9.5 9.2 9.7 10.4 10.3
As per cent of social services
Education 42.4 41.2 42.5 38.9 35.8 35.8 35.3
Health 21.4 20.8 20.0 21.5 25.5 23.9 24.9
Others 36.2 38.0 37.6 39.6 38.7 40.4 39.8
Source: RBI
Note: (i) The ratios to GDP at current market prices are based on 2011-12 base till 2021-22. GDP for 2022-23 is as 
per the Union Budget 2022-23.
(ii) * The Ministry of Education (MoE), Government of India, also calculates the General Government spending 
on education. While RBI’s data on Education expenditure incorporates the spending incurred by Centre and 
States on ‘Education, Sports, Arts, and culture, MoE’s estimates also include expenditure incurred on medical 
and public health education, agriculture research and education, welfare of SC, ST, OBC & Minority’s education, 
other scientific research & development, Education under social security, Nutritious food expenditure under mid-
day meal, expenditure on imparting training to police, Labour employment and skill development expenditure, 
education/training expenditure under rural development Programmes etc. This leads to a higher estimate of 
expenditure on education, which is 4.64 per cent of GDP in 2020-21 (latest available).
7.3 This chapter presents the impact of the high economic growth in recent years on the 
citizens of the country. Section I discusses some critical outcomes in the overarching area of the 
standard of living of the populace. Some key areas, such as health, and education, are covered 
in some detail. In light of the emphasis on Nari Shakti, Section II dwells on the rising women 
power in the country and the active role of Government policies and programmes in this 
regard. A large population of the country resides in rural India. The developments happening 
at the grassroots level and the role of Government policies and programmes for rural India are 
presented in Section III. 
DOVETAILING GROWTH WITH EMPOWERING WELFARE:  
A PARADIGM SHIFT
7.4 Demchok village in Leh, located at a height of 13,800 feet where mercury can drop up to 
minus 40 degrees, got its first tap water connection in July 2022 under the Jal Jeevan Mission, 
freeing up women from the drudgery of fetching water. A remote tribal village of Bulumgavan 
in Maharashtra received electric supply only in 2018, 70 years after independence! 
7.5 There are numerous such stories of the common citizens reaping the harvest of the 
Government’s empowering approach to welfare. With India becoming the fifth largest economy, 
Economic Survey 2023-24
212
the lives of average Indians are better than a decade ago. Over 10.3 crore women have been 
provided free-of-cost gas connections under PM Ujjwala Yojana, 11.7 crore toilets have been 
built under Swachh Bharat Mission, 52.6 crore Jan Dhan accounts have been opened, 3.47 
crore pucca houses have been built for the poor people under the PM-AWAS Yojana, 11.7 crore 
households provided tap water connections under Jal Jeevan Mission, and 6.9 crore hospital 
admissions have been made under the Ayushman Bharat Scheme. Behind these numbers lie 
numerous stories of better lives. 
7.6 India’s social and economic milieu presents many strengths, opportunities, and challenges. 
Its strengths can be counted as the fastest-growing economy, which is making great strides 
in delivering welfare and opportunities to its people through the creation and expansion of 
digital public infrastructure (DPI). The opportunities are reflected in the fact that 18 per cent 
of the population is in the age group of 15-24 years (compared to the global average of 15.4 per 
cent), with a median age of 28.2 years.
5
 This young India wants to climb the ladder of social 
and financial progress faster. These strengths and opportunities are also counter-balanced 
by significant challenges, including improving learning outcomes in schools, eliminating 
malnutrition, channelising the potential of the hinterland, tackling regional, caste and gender 
disparities, and instilling accountability and transparency at all levels of the Government. In 
light of limited fiscal resources, the expectations of the socio-economically diverse populace 
necessitate a sensitive, pragmatic, and prudent welfare policy.
7.7 This required transforming the approach to a long-term-oriented, efficient, and 
empowering one, recognising universal access to basic amenities as a starter for inclusive 
growth, thus impelling an array of flagship initiatives. In contrast to short-term measures 
requiring repeated disbursement of scarce resources, such an approach not only builds social 
infrastructure for the decades to come but also enables individuals to climb up the standard-
of-living ladder and utilise the opportunities accompanying high growth. Socially empowering 
the citizens inculcates a sense of autonomy and self-confidence by altering social relationships, 
institutions, and discourses so that the hitherto excluded disadvantaged sections of society can 
also find a place in the sun. Placing people on the 'development' treadmill from the 'welfare' 
treadmill is not just a matter of fiscal sustainability. Self-esteem and personal dignity also 
stand enhanced when members of the public participate in and contribute to development, 
moving away from welfare dependence. As Rama Bijapurkar notes, even among the socially 
disadvantaged, “there is a distinct and growing segment who, with some combination of access 
to networks, information, Government support, and personal circumstances, find the agency 
and energy to try and strive for opportunities for a better life.”
6
Pillars of the new approach to welfare
7.8 The new welfare approach bears in mind that spending alone cannot guarantee outcomes. 
It lays a strong focus on transforming the implementation and effectiveness of Government 
programmes, thus increasing the impact per rupee spent. Cost-effectiveness is increasingly 
5  United Nations, World Population Prospects (2022), https://ourworldindata.org/grapher/population-by-age-
group
6  ‘The new tale of two Indias’, Business Standard, 25 June 2024 https://tinyurl.com/35p9ukf8 
Page 5


CHAPTER
07
SOCIAL SECTOR: BENEFITS 
THAT EMPOWER
India’s high and sustained economic growth in recent years is being accompanied 
by social and institutional progress, underpinned by transformational and effective 
implementation of Government programmes with an empowering edge that has 
become the hallmark of a transformed approach to welfare. Be it health, education, 
sanitation, digital empowerment, or quality of life in rural areas, each aspect of the 
social infrastructure ecosystem has made strides through effective planning and 
delivery of various welfare schemes. The outcomes and success stories of the endeavours 
being made by the Government to ensure ease of living for one and all are evident. The 
realms of health and education are witnessing turning points in quality and access. 
Women-led development is being promoted with 360-degree enabling interventions for 
socioeconomic empowerment. A slew of programmes for transparent and digitalised 
rural governance have accompanied a perceptible improvement in the standard of 
living. To attain the much-avowed status of a developed country by 2047, effective and 
efficient Government programmes and state-level initiatives, augmented by community 
participation, are key.
INTRODUCTION
7.1 India is on the path to scaling the next level of the development ladder to a ‘Developed 
India’ step by 2047 (ViksitBharat@2047). Economic growth is a pathway to achieve the end 
goal of development comprising economic, social, technological, and institutional progress. 
However, the direction of public policy and its implementation are also instrumental in 
translating growth to across-the-board human development. Home to 18 per cent of humanity
1
, 
India’s social infrastructure must reach a diverse and expansive populace, transcending 
cultures, languages, and geographies. Boasting a young and aspirational society, India aims 
to seize the opportunities provided by steady and high economic growth while also ensuring 
a society characterised by better health care, education, clean water, sanitation facilities, 
affordable housing, electricity, and the internet. A vast amount of ground has been covered to 
ensure sustainable and equitable economic growth and the journey continues with challenges, 
old and new, as well as solutions, centralised and local. 
7.2 Over the last decade, the Indian concept of welfare has been significantly transformed into 
a more long-term-oriented, efficient, and empowering avatar. This has further strengthened 
the welfare ecosystem and helped lay a solid foundation for human development in the country. 
1 UN estimate https://www.un.org/en/global-issues/population
Economic Survey 2023-24
210
Besides, the Government’s social sector expenditure has been keeping pace with the sector’s 
growing importance. The Government’s spending on social services has shown a rising trend 
since FY16, with a focus on many aspects of the social well-being of citizens of the country, as 
evident from Table VII.1. Between FY18 and FY24, nominal GDP has grown at a compounded 
annual growth rate (CAGR) of around 9.5 per cent. Overall, welfare expenditure has grown at 
a CAGR of 12.8 per cent. Expenditure on education has grown at a CAGR of 9.4 per cent- a tad 
below the rate of nominal GDP growth. Expenditure on health, as shown in the Table below, 
has grown at a CAGR of 15.8 per cent.
Table VII.1 Trends in social services expenditure by general Government 
(Combined Centre and States)
(? crore)
Items 2017-18 2018-19 2019-20 2020-21 2021-22
2022-23 
(RE)
2023-24 
(BE)
Total 
Expenditure
45,15,946 50,40,747 54,10,887 63,53,359 70,98,451 83,76,972 90,45,119
Expenditure 
on Social 
Services
2
11,39,524 12,78,124 13,64,906 14,79,389 17,87,019 21,49,346 23,50,584
of which:       
Education
3
4,83,481 5,26,481 5,79,575 5,75,834 6,39,436 7,68,946 8,28,747
Education 
(MoE’s 
estimates)*
6,621,51 7,36,581 8,63,118 
(RE)
9,19,145 
(BE)
Health
4
2,43,388 2,65,813 2,72,648 3,17,687 4,56,109 5,12,742 5,85,706
Others 4,12,655 4,85,829 5,12,683 5,85,868 6,91,474 8,67,659 9,36,131
As per cent of GDP
Expenditure on 
Social Services
6.7 6.8 6.8 7.5 7.6 8.0 7.8
of which: 
Education 2.8 2.8 2.9 2.9 2.7 2.9 2.7
Education 
(MoE’s 
estimates)*
3.9 3.9 4.3 
(RE)
4.6 
(BE)
Health 1.4 1.4 1.4 1.6 1.9 1.9 1.9
Others 2.4 2.6 2.6 3.0 2.9 3.2 3.1
2  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.
3 Expenditure on ‘Education’ pertains to expenditure on ‘Education, Sports, Arts, and culture.
4  Expenditure on ‘Health’ includes expenditure on ‘Medical and Public Health’, ‘Family Welfare’, and ‘Water Supply 
and Sanitation. 
Social Sector
211
Items 2017-18 2018-19 2019-20 2020-21 2021-22
2022-23 
(RE)
2023-24 
(BE)
As per cent of total expenditure
Expenditure on 
Social Services
25.2 25.4 25.2 23.3 25.2 25.7 26.0
of which: 
 Education 10.7 10.4 10.7 9.1 9.0 9.2 9.2
 Health 5.4 5.3 5.0 5.0 6.4 6.1 6.5
Others 9.1 9.6 9.5 9.2 9.7 10.4 10.3
As per cent of social services
Education 42.4 41.2 42.5 38.9 35.8 35.8 35.3
Health 21.4 20.8 20.0 21.5 25.5 23.9 24.9
Others 36.2 38.0 37.6 39.6 38.7 40.4 39.8
Source: RBI
Note: (i) The ratios to GDP at current market prices are based on 2011-12 base till 2021-22. GDP for 2022-23 is as 
per the Union Budget 2022-23.
(ii) * The Ministry of Education (MoE), Government of India, also calculates the General Government spending 
on education. While RBI’s data on Education expenditure incorporates the spending incurred by Centre and 
States on ‘Education, Sports, Arts, and culture, MoE’s estimates also include expenditure incurred on medical 
and public health education, agriculture research and education, welfare of SC, ST, OBC & Minority’s education, 
other scientific research & development, Education under social security, Nutritious food expenditure under mid-
day meal, expenditure on imparting training to police, Labour employment and skill development expenditure, 
education/training expenditure under rural development Programmes etc. This leads to a higher estimate of 
expenditure on education, which is 4.64 per cent of GDP in 2020-21 (latest available).
7.3 This chapter presents the impact of the high economic growth in recent years on the 
citizens of the country. Section I discusses some critical outcomes in the overarching area of the 
standard of living of the populace. Some key areas, such as health, and education, are covered 
in some detail. In light of the emphasis on Nari Shakti, Section II dwells on the rising women 
power in the country and the active role of Government policies and programmes in this 
regard. A large population of the country resides in rural India. The developments happening 
at the grassroots level and the role of Government policies and programmes for rural India are 
presented in Section III. 
DOVETAILING GROWTH WITH EMPOWERING WELFARE:  
A PARADIGM SHIFT
7.4 Demchok village in Leh, located at a height of 13,800 feet where mercury can drop up to 
minus 40 degrees, got its first tap water connection in July 2022 under the Jal Jeevan Mission, 
freeing up women from the drudgery of fetching water. A remote tribal village of Bulumgavan 
in Maharashtra received electric supply only in 2018, 70 years after independence! 
7.5 There are numerous such stories of the common citizens reaping the harvest of the 
Government’s empowering approach to welfare. With India becoming the fifth largest economy, 
Economic Survey 2023-24
212
the lives of average Indians are better than a decade ago. Over 10.3 crore women have been 
provided free-of-cost gas connections under PM Ujjwala Yojana, 11.7 crore toilets have been 
built under Swachh Bharat Mission, 52.6 crore Jan Dhan accounts have been opened, 3.47 
crore pucca houses have been built for the poor people under the PM-AWAS Yojana, 11.7 crore 
households provided tap water connections under Jal Jeevan Mission, and 6.9 crore hospital 
admissions have been made under the Ayushman Bharat Scheme. Behind these numbers lie 
numerous stories of better lives. 
7.6 India’s social and economic milieu presents many strengths, opportunities, and challenges. 
Its strengths can be counted as the fastest-growing economy, which is making great strides 
in delivering welfare and opportunities to its people through the creation and expansion of 
digital public infrastructure (DPI). The opportunities are reflected in the fact that 18 per cent 
of the population is in the age group of 15-24 years (compared to the global average of 15.4 per 
cent), with a median age of 28.2 years.
5
 This young India wants to climb the ladder of social 
and financial progress faster. These strengths and opportunities are also counter-balanced 
by significant challenges, including improving learning outcomes in schools, eliminating 
malnutrition, channelising the potential of the hinterland, tackling regional, caste and gender 
disparities, and instilling accountability and transparency at all levels of the Government. In 
light of limited fiscal resources, the expectations of the socio-economically diverse populace 
necessitate a sensitive, pragmatic, and prudent welfare policy.
7.7 This required transforming the approach to a long-term-oriented, efficient, and 
empowering one, recognising universal access to basic amenities as a starter for inclusive 
growth, thus impelling an array of flagship initiatives. In contrast to short-term measures 
requiring repeated disbursement of scarce resources, such an approach not only builds social 
infrastructure for the decades to come but also enables individuals to climb up the standard-
of-living ladder and utilise the opportunities accompanying high growth. Socially empowering 
the citizens inculcates a sense of autonomy and self-confidence by altering social relationships, 
institutions, and discourses so that the hitherto excluded disadvantaged sections of society can 
also find a place in the sun. Placing people on the 'development' treadmill from the 'welfare' 
treadmill is not just a matter of fiscal sustainability. Self-esteem and personal dignity also 
stand enhanced when members of the public participate in and contribute to development, 
moving away from welfare dependence. As Rama Bijapurkar notes, even among the socially 
disadvantaged, “there is a distinct and growing segment who, with some combination of access 
to networks, information, Government support, and personal circumstances, find the agency 
and energy to try and strive for opportunities for a better life.”
6
Pillars of the new approach to welfare
7.8 The new welfare approach bears in mind that spending alone cannot guarantee outcomes. 
It lays a strong focus on transforming the implementation and effectiveness of Government 
programmes, thus increasing the impact per rupee spent. Cost-effectiveness is increasingly 
5  United Nations, World Population Prospects (2022), https://ourworldindata.org/grapher/population-by-age-
group
6  ‘The new tale of two Indias’, Business Standard, 25 June 2024 https://tinyurl.com/35p9ukf8 
Social Sector
213
being pointed out in academic literature, too. For instance, Muralidharan (2024)
7
 estimates that 
unless the efficiency of converting spending into outcomes is substantially improved, neither 
a growth focus nor a development focus (i.e., increasing budget allocation to social sectors) 
will lead to satisfactory outcomes in tackling child stunting, improving learning in schools, 
reducing the infant mortality rate. To this end, the Government is emphasising process reforms 
and accountability, interwoven with the utilisation of technology. 
7.9 The digitisation of healthcare, education and governance has been a force multiplier for 
every rupee spent on a welfare programme. The Direct Benefit Transfer (DBT) scheme and 
Jan Dhan Yojana-Aadhaar-Mobile (JAM) trinity have been boosters of fiscal efficiency and 
minimisation of leakages, with more than ?38 lakh crore having been transferred via DBT since 
its inception in 2013.
8
 
7.10 The Government has also implemented a goal-oriented approach for budgetary allocation, 
comprising expected outputs and outcomes of the schemes, as part of the Outcome Budget, 
which has been accompanying the conventional annual Budget since FY 18. An ‘Output-Outcome 
Monitoring Framework’ has been developed by NITI Aayog for the major central sector and 
centrally sponsored schemes since FY 20. Moreover, acceleration in capital expenditure within 
social services expenditure signifies higher productivity and creation of societal assets. This is 
set against the backdrop of ubiquitous, user-friendly dashboards and management information 
systems (MIS) across major schemes, instilling transparency and accountability through real-
time monitoring. Box VII.1 delves deeper into the rising heft of data in governance.
Box VII.1: Transforming data governance in India: DGQI 2.0 and beyond
Over the past few decades, the Government of India has made significant strides in managing 
and utilising data effectively. Recent decades have witnessed a digital transformation, 
with MIS and centralised data access through policies like the National Data Sharing & 
Accessibility Policy and data.gov.in. Dashboard systems and platforms like District 
Development Coordination and Monitoring Committees (DISHA), Prayas, and Output 
Outcome Monitoring Framework have improved accountability in public policy. 
Today, most Government programmes utilise internal MIS that capture vast amounts of 
data. In today’s digital age, effectively managing this data, extracting actionable insights 
for decision-making, facilitating course corrections, and ensuring interoperability across 
Government data units are critical objectives of India’s data strategy towards a Viksit Bharat. 
It would bolster data availability for decision-making and foster system interoperability for 
a seamless experience for beneficiaries accessing Government services. 
In this context, a comprehensive review of present data preparedness levels of all Ministries/
Departments (M/D) was required to chart the way forward and suggest measures for 
improvement. Against this background, the Data Governance Quality Index (DGQI) exercise 
was initiated to assess the data preparedness of various M/D on a standardised framework 
to drive healthy competition among them and promote cooperative peer learning from best 
practices.
7  Muralidharan, K. (2024): “Accelerating India’s Development: A state-led roadmap for effective governance”, 
Penguin India Viking, ISBN: 9780670095940, Chapter 10.
8  As of 15 July 2024, source: https://dbtbharat.gov.in/