Not Nirbhar on Mai Baap

Context:  Pandemic induced migrant crisis is due to the inadequacy of social safety measures present in India. The role of the government should be of enabler, rather than provider.

Issues with Migrant Workers

• No social safety: in form of social/ income security or Universal Basic Income (UBI).
• Income disparities: between ‘India’ and ‘Bharat ’i.e  poorer and richer states, force them to again migrate to cities for income opportunities.

Inadequacy of social safety net in India

• No inclusive enough: Large unorganised labour force (83% of the workforce) in the form of the gig economy, the self-employed, employees of MSME is not covered in social security schemes.
• The Unorganised Workers Social Security Act, 2008: failed to address needs of unorganised workers.
• Non-existence of social/ income security: even for organised / white-collar workers.
• Insufficient income support from existing saving schemes: 
• Coverage of Employee Provident Fund PF is limited to the organised sector, Public Provident Fund (PPF) is not flexible, and National Pension Scheme caters only to old-age security.
• Fiscal Constraints: The concept of Universal Basic Income, even when targeted, is not adequate.

Way Forward

• Graded social security scheme: for both organised and unorganised workforce. 

• Cafeteria approach with graded contributions: workers and employers linked to their income levels.

• Ideal Social safety net: must combine the best features of existing schemes and has a single, portable account number. 

• Tax-funded UBI: for those at the bottom of the pyramid topped by voluntary contributions of ?10 a month. 

• Proposed code on social security: must focus on establishing a universal scheme, rather than on definitional issues related to who is a worker, size and type of establishment, etc.
• Institutional mechanism: to help workers deal with the ups and downs of their work life.

Conclusion: Based on the notion of “Atmanirbhar labour in an Atmanirbhar Bharat”, Government must limit its role to that of an enabler, rather than a provider, of universal social security nets.

Quote: “It is better to teach a man to fish, rather than give him a fish a day”.