Social Sector: Extending Reach and Driving Empowerment | Economic Survey & Government Reports - UPSC PDF Download

 Page 1


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


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'.
Page 3


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'.
Page 4


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'.
Page 5


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'.
Social Sector
305
the HCES 2022-23. Fiscal policies of the government are playing a key role in reshaping 
income distribution, inter-alia, through the provision of subsidies, pensions, and other 
direct transfers, as well as public spending on social services such as education and 
health. Various government welfare schemes such as free foodgrain or subsidised 
availability of foodgrains, subsidised cooking fuel, insurance cover, etc, are lifting 
household incomes. These fiscal transfers help to provide additional resources to the 
financially deprived sections and, thus, favourably impact people's standard of living.
7
 
As an example, building upon the learnings of the HCES, a study by the World Bank
8
 
presents evidence of the re-distribution impact of the Public Distribution System (PDS). 
Box XI.1 discusses this evidence.
Box XI.1:  Evidence on the distribution of benefits from the PDS
Food subsidies constitute the largest fiscal outlay in the government’s large set of social 
schemes. In 2022-23, Union government spent 6.5 per cent of its budget on the PM Pradhan 
Mantri Garib Kalyan Anna Yojana (PMGKAY) to provide free and subsidised food rations. 
As food subsidies were expanded (and consolidated under the PMGKAY) as part of the 
emergency fiscal response to COVID-19, the Union food subsidy bill increased from 0.5 per 
cent to one per cent of GDP between FY19 and FY23. Microdata from the HCES 2022-23 
confirm that most households currently purchase food rations—at a subsidised price or free 
of cost—via the PDS and PMGKAY entitlements. The widespread coverage of ration cards 
protects low income and vulnerable populations. 
The survey also provides insights into the allocation of these benefits across different 
segments of the population. In 2022-23, 84 per cent of the population had access to a ration 
card, including 59 per cent who reported holding a Below Poverty Line (BPL), Antyodaya 
Anna Yojana (AAY), or Priority Household (PHH) card in their household. In practice, 
74 per cent of the population actively consumes food rations (or kerosene) via the PDS/
PMGKAY, with rice and wheat as the most commonly consumed food. Coverage of ration 
cards is higher in rural areas (at 89 per cent of the population) compared to urban areas 
(72 per cent). 
The PDS/PMGKAY rations improve welfare
An imputation exercise was conducted
9
 based on HCES microdata to evaluate the welfare 
gains from PDS-related consumption. The results suggest that the market-equivalent value 
of the PDS/PMGKY subsidy equals four per cent of the (final or post-subsidy) nominal
7  For more detailed discussion on this aspect, refer to Chapter 2, “Perspectives on the Inequality Debate in India”, 
of the Ministry of Finance’s publication, “RE-EXAMINING NARRATIVES: A Collection of Essays”,  https://
tinyurl.com/2nt6mubz
8  This work was undertaken by World Bank staff, under the Taskforce on Indian Statistical System led by the NITI 
Aayog.
9  Following international best practices, the unitary value of food rations and kerosene consumption obtained via 
the PDS/PMGKAY, in 2011-12 and 2022-23, are imputed. The methodology aims to find an equivalent valuation 
of the PDS/PMGKAY items (paid at subsidised prices or received free of cost) in the local market economy for 
each household consuming rations in the survey.