Understanding the Evolution of Welfare in India

welfare in India, politics, history, economics

Overview

Opinions about welfare in India vary widely, from being seen as a harbinger of economic doom to a litmus test for a civilized society. The story of welfare in India is long and complex, with a rich historical background. Louise Tillin’s book, “Making India Work: The Development of Welfare in a Multi-Level Democracy,” provides valuable insights into this narrative.

Historical Context

India’s involvement with the International Labour Organisation (ILO) dates back to 1919, showcasing early engagement with labor issues. The book also sheds light on the genesis of trade unions and industry lobbies in India. The planned visit by economist William Beveridge to study Indian labor dynamics offers intriguing insights.

Importance of Welfare in Democracy

The dynamic between labor and capital in a democracy is crucial. The book discusses how various countries navigated this tension, from the rise of fascism to the collapse of the socialist bloc. The pursuit of a balance between labor and capital is a central theme of political and economic history.

Challenges and Critiques

India’s welfare regime faces challenges due to historical factors and evolving economic landscapes. Critiques of the passive revolution and a rights-based welfare model highlight the complexities of India’s social security framework.

The Role of Reforms

Three and a half decades of economic reforms have influenced India’s welfare trajectory. While reforms have enhanced the state’s fiscal capacity, maintaining a balance between welfare demands and macroeconomic stability remains a challenge.

The Path Ahead

As India navigates the complexities of welfare provision, political and economic actors must collaborate to address structural issues and foster holistic growth. Engaging with the dynamics of value creation and incentivizing innovation are key to shaping India’s welfare landscape.

By Roshan Kishore, HT’s Data and Political Economy Editor


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