Social Infrastructure

Posted 22 Jun 2024

4 min read

Why in the News?

Recently, the Ministry of Labour and Employment has joined the PM Gati Shakti portal to identify and bridge gaps in social security coverage which is in line with PM Gati Shakti’s plan to cover social infrastructure.

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The data available at the portal will be leveraged to cover workers engaged in industrial clusters and special economic zones (SEZs) so as to improve the social infrastructure in India.

An infographic titled "Data Bank" with three statistics: 1. India's 2022 rank in the Human Development Index is 134, improving from 135 in 2021. 2. Less than 5% of the workforce (age 19-24) receives formal vocational education. 3. Life insurance penetration in India is 3.2% in 2021.

Social infrastructure includes assets which provides for social services such as education, health, washing and sanitation facilities, housing, etc.
It is different from economic Infrastructure which helps in improving the productive capacity of the nation. E.g. energy, transportation and communication etc.

Promotes inclusive growth by reducing incidents of poverty and cases of inequality.
Enhances human resource productivity by improving education and skill levels, thereby maximizing the chances of utilizing India’s demographic dividend.
- Social security and labour welfare improves mobility, productivity and efficiency of labour.
Encourages upward social mobility and enhances social well-being.
- Social mobility refers to change in a person's socio-economic situation, either in relation to their parents (inter-generational mobility) or throughout their lifetime (intra-generational mobility). (OECD)
Improves quality of life of individuals by increasing their incomes and employment opportunities.
- Access to clean water and sanitation has direct benefits in reducing mortality and morbidity that increases the productive capacity of the poor.
Helps in achievement of Sustainable Development Goals by adoption of eco-friendly practices such as reducing carbon footprints, promoting resilience to climate change.
Reduces sense of alienation among citizens by creation of liveable and inclusive settlements where social and economic benefits also accrue to the marginalised groups such as poor, women, children, persons with disability etc.

Under Directive Principles of State Policy (DPSP), the Constitution of India makes it the duty of the state to work for citizen’s welfare-
- Article 42: Provision for securing just and humane conditions of work and for maternity relief.
- Article 47: Duty of the State to raise the level of nutrition and the standard of living and to improve public health.
- Article 45: Provision for early childhood care and education to children below the age of six years.
- Article 39(b): Encourages distribution of material resources to subserve the common good.
- Article 39(c): Emphasises that economic system should not result in the concentration of wealth.
Under Seventh schedule, Public health and sanitation is placed in State List whereas education, welfare of labour including conditions of work are in Concurrent List.

A graphic titled "Development of Social Infrastructure by Indian Government" is divided into three sections: Education, Health, and Housing. Each section lists related schemes: Education (3 schemes), Health (4 schemes), and Housing (2 schemes).

Inadequate public funding on key social sectors such as education and health leading to low learning outcomes.
- Low private sector participation due to low return on investments further complicates the problem.
Lack of Human Resources: Such as absence of trained teachers, lack of high skilled health professionals, planning etc.
Inequality in access: Due to affordability issues in marginalized communities, especially in lower-income groups.
Low awareness among citizens about the importance of social infrastructure: E.g., the perception of the high costs of having a household toilet and the perceived convenience of open defecation keep the sanitation status low.
Uneven distribution and regional disparities: E.g., the rural-urban disparity in the distribution of higher educational institutions and hospitals.

Way Forward

Supplement public resources with Public-private partnerships (PPPs) to address financial gaps in social infrastructure by leveraging private sector technical expertise, experience and efficiency.
Use of innovative initiatives such as Development Impact Bonds to finance development programs by attracting private investors.
Securing the unsecured by ensuring universal coverage of life, accident, and pension insurance, will help in increased social security coverage.
Increase public expenditure on healthcare and education to 2.5% and 6% of GDP in line with National Health Policy 2017 and National Education Policy 2020 respectively.
Direct Benefit Transfer can be used as a tool to achieve desired outcomes related to the standard of living.