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What is the need for Social Security System in India ?
The need was particularly realised as the globalisation influenced policies of the government had led to increased contractualisation, outsourcing and informalisation of industries, thus leading to an increase in the size of the unorganised sector.
The state was not obligated by the constitution to become a “welfare state”.
The wave of globalisation demanded greater attention and protection to formal workers.
Informal employment is a meager 7% in India, as per economic survey 2014-15, thus an overwhelming majority of the citizens were mostly dependent more on the social structure rather than on the state for their social security.
Indian society is traditionally a Joint Family system. So social security was primarily provided by the community and the family. The state was obligated by the constitution to become a “welfare state”. However, due to limited capacity of the state just after the turmoil of the Independence a large chunk of the social security obligation were place under the DPSP, which are non-justifiable. Also, since formal employment is a meager 7% in India, as per economic survey 2013-14, thus an overwhelming majority of the citizens were mostly dependent more on the social structure rather than on the state for their social security. The wave of globalisation demanded greater attention and protection to informal workers as the process of globalisation has eroded employment relations, which have encouraged formal sector employers to hire workers at low wages with no social-security benefits or to subcontract the production of goods and services, which helped them maintain cost efficiency. The need was particularly realised as the globalisation influenced policies of the government had led to increased contractualisation, outsourcing and informalisation of industries, thus leading to an increase in the size of the unorganised sector. The adverse labour market implications of the informal sector were also recognised by the government, and as a response, an unprecedented revival of the social security measures in India is observed.
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