Social Sector: Extending Reach and Driving Empowerment (2024-25) | Indian Economy for UPSC CSE PDF Download

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11
CHAPTER
301
SOCIAL SECTOR: 
EXTENDING REACH AND 
DRIVING EMPOWERMENT
India's economic growth strategy emphasises inclusivity and welfare for all its 
citizens. The government’s focus is on empowering citizens through education, 
healthcare, skill development, and social infrastructure development. All these 
aspects have seen significant progress. Further enhancements are still possible 
by improving delivery systems through innovation and technology.
For example, achieving improved educational outcomes and healthcare access 
can be accomplished with innovative solutions, such as integrating new 
teaching methods and preventive healthcare strategies. Peer learning, life skills, 
and social and emotional learning hold great potential for fostering lifelong 
learning. Additionally, prioritising mental health in the workplace not only 
matters for overall well-being and a harmonious society but can also enhance 
worker productivity. A strong focus on preventing non-communicable diseases 
combined with the use of technology can be economically effective, significantly 
reducing the cost burden on healthcare systems.
INTRODUCTION
11.1 The virtuous cycle of economic and social development starts with sustainable 
and inclusive economic growth. While growth expands the economic pie, development 
represents the process of sustained economic progress and is a medium to long-term 
outcome of growth. Such growth supports inclusion by providing better and more equal 
opportunities, enhancing incomes, and reducing extreme poverty. Inclusive growth also 
improves the overall living standards of citizens of the country in terms of healthcare, 
education, basic necessities of life and livelihood. 
11.2 For growth to transition into meaningful development, sound, effective, holistic, 
and comprehensive policies are indispensable. Focus is required on education, health, 
social security, enhancing employment opportunities through skilling etc. These 
translate to improved quality of social and economic infrastructure in the country.  In 
alignment with this vision for growth-led-development, the government has adopted 
interventions to ensure welfare for all. Inclusive economic growth is central to the 
vision of Viksit Bharat 2047.
Page 2


11
CHAPTER
301
SOCIAL SECTOR: 
EXTENDING REACH AND 
DRIVING EMPOWERMENT
India's economic growth strategy emphasises inclusivity and welfare for all its 
citizens. The government’s focus is on empowering citizens through education, 
healthcare, skill development, and social infrastructure development. All these 
aspects have seen significant progress. Further enhancements are still possible 
by improving delivery systems through innovation and technology.
For example, achieving improved educational outcomes and healthcare access 
can be accomplished with innovative solutions, such as integrating new 
teaching methods and preventive healthcare strategies. Peer learning, life skills, 
and social and emotional learning hold great potential for fostering lifelong 
learning. Additionally, prioritising mental health in the workplace not only 
matters for overall well-being and a harmonious society but can also enhance 
worker productivity. A strong focus on preventing non-communicable diseases 
combined with the use of technology can be economically effective, significantly 
reducing the cost burden on healthcare systems.
INTRODUCTION
11.1 The virtuous cycle of economic and social development starts with sustainable 
and inclusive economic growth. While growth expands the economic pie, development 
represents the process of sustained economic progress and is a medium to long-term 
outcome of growth. Such growth supports inclusion by providing better and more equal 
opportunities, enhancing incomes, and reducing extreme poverty. Inclusive growth also 
improves the overall living standards of citizens of the country in terms of healthcare, 
education, basic necessities of life and livelihood. 
11.2 For growth to transition into meaningful development, sound, effective, holistic, 
and comprehensive policies are indispensable. Focus is required on education, health, 
social security, enhancing employment opportunities through skilling etc. These 
translate to improved quality of social and economic infrastructure in the country.  In 
alignment with this vision for growth-led-development, the government has adopted 
interventions to ensure welfare for all. Inclusive economic growth is central to the 
vision of Viksit Bharat 2047.
Economic Survey 2024-25
302
11.3 Social sector policies need to consider the complex interplay of multiple factors 
which eventually determine their success. For example, a policy to improve school 
education may not be very effective without policies related to healthcare, food and 
nutritional security, access to transport facilities, and household income playing as 
the contributing factors to a child continuing school. Further, policies are required 
to aim towards empowering citizens and enhancing their capability to achieve their 
aspirations. This requires providing them with opportunities for self-growth and 
progress. In keeping with this understanding, the focus is on all-round development 
to ensure a better quality of life for all citizens through efficient delivery of welfare 
measures. Government programmes are being designed to reach citizens cost-
effectively, leveraging user-friendly dashboards and management information systems 
for real-time monitoring, promoting transparency and accountability. 
Trend in social services expenditure 
11.4 The general government’s social sector expenditure has been keeping pace with 
the sector’s growing importance. The general government’s social services
1
 expenditure 
(SSE) has shown a rising trend since FY17. The SSE as a percentage of total expenditure 
(TE) has increased from 23.3 per cent in FY21 to 26.2 per cent in FY25 (BE). The social 
services expenditure witnessed an increase of 21 per cent in FY24 (RE) over FY23 and 
another 10 per cent increase in FY25 (BE) over FY24 (RE). During the five years from 
FY21 (pandemic year) to FY25 (BE), the SSE grew at a CAGR of 15 per cent. While the 
SSE outlay of the centre and state governments was ?14.8 lakh crore in FY21, it has 
increased steadily to stand at ?25.7 lakh crore in FY25 (BE). Expenditure on education 
has grown at a CAGR of 12 per cent from ? 5.8 lakh crore in FY21 to ? 9.2 lakh crore in 
FY25 (BE).
2
 Expenditure on health grew at CAGR 18 per cent from ? 3.2 lakh crore in 
FY21 to ? 6.1 lakh crore in FY25 (BE).
3
1  Social services include, education, sports, art and culture; medical and public health, family welfare; water supply 
and sanitation; housing; urban development; welfare of SCs, STs and OBCs, labour and labour welfare; social 
security and welfare, nutrition, relief on account of natural calamities etc.
2  Expenditure on 'Education' pertains to expenditure on education, sports, arts and culture.
3  Expenditure on 'Health' includes expenditure on 'Medical and Public Health', 'Family Welfare' and 'Water Supply 
and Sanitation'.