The Technocratic Calculus of India’s Welfare State: Between Efficiency and Democracy

UPSC Relevance

Prelims-Digital Welfare State, Technocratic Governance, DBT, Aadhaar, CPGRAMS, Algorithmic Insulation, Democratic Antifragility, RTI, Federalism, Platform Cooperatives, Kerala Kudumbashree, Rancière, Foucault, Habermas

GS Paper II – Governance-Welfare schemes and their implementation,Role of civil society and e-governance,Transparency and accountability mechanisms

GS Paper III – Technology and Ethics-Use of IT in governance,Issues of data privacy, algorithmic bias, and democratic oversight

Essay and Ethics-Themes of “Technology vs Democracy”, “Welfare vs Rights”, “Efficiency vs Inclusion”

Why in News?

India’s welfare regime is undergoing a technocratic transformation, driven by digital infrastructure like Aadhaar, Direct Benefit Transfers (DBT), and central grievance portals. While these innovations promise efficiency and scale, concerns are growing over the erosion of democratic norms, citizen agency, and political accountability.

Background: Evolution of India’s Welfare System

India’s welfare system has gone through two major phases:

Earlier Approach (Rights-Based Model)

●      Focused on giving legal rights and entitlements to people.

●      Encouraged community involvement and public discussion in decision-making.

●      Major schemes under this approach:

○      MGNREGA (Right to Work)

○      Right to Food Act

○      Right to Education Act

●      Aim: To ensure citizenship rights and government accountability through democracy.

Recent Shift (Data-Driven Model – Last 10 Years)

Now, the focus has shifted to using technology and data to improve welfare delivery. The goal is to reduce corruption (leakages) and ensure benefits reach the right people.

Key features of this new model:

●      Aadhaar-based identification (using biometric ID to verify people)

●      E-Governance platforms (online systems for service delivery)

●      Digitised welfare lists (electronic records of beneficiaries)

●      DBT (Direct Benefit Transfer) linked with 1,200+ government schemes, where money is sent directly to bank accounts

India moved from a people-based welfare model (focused on rights and participation) to a tech-based model (focused on efficiency and targeting) to improve the system and reduce misuse.

 Recent Developments in India’s Welfare Delivery

1. Growth of Digital Infrastructure

India has rapidly expanded its use of technology in welfare delivery:

●      Over 1 billion people enrolled in Aadhaar.

●      1,206 government schemes now send money directly through DBT (Direct Benefit Transfer).

●      36 grievance portals active across States and Union Territories.

●      Major welfare programmes like E-SHRAM and PM-KISAN are fully digital and technology-based.

2. Grievance Portals & Centralised Systems

●      CPGRAMS (Centralised Public Grievance Redress System) shows lakhs of complaints being resolved.

●      But there are deeper issues:

○      Responsibility is unclear – it’s hard to know who is answerable.

○      Just having data (visibility) does not guarantee accountability.

 3. Drop in Social Sector Spending

●      Spending on social welfare has decreased:

○      In 2024–25, it was just 17% of the total budget (earlier average was 21%).

●      Schemes for minorities, nutrition, and labour have been cut severely – from 11% to just 3% after COVID-19.

4. Weakened RTI (Right to Information) System

●      As of June 2024:

○      Over 4 lakh RTI appeals are still pending.

○      8 posts of Central Information Commissioners are vacant.

●      This weakens the system of transparency and public accountability.

While technology has improved access and speed in welfare delivery, issues like declining social spending, lack of clear accountability, and a weakened RTI system raise concerns about citizen rights and government responsibility.

Key Issues in the Changing Welfare Model

1. Post-Rights Welfare Thinking

  • Earlier, the question was: “Who needs help?”
     Now, the question has become: “How to stop misuse?”
  • The focus on efficiency and digital control often ignores human needs, local context, and even constitutional rights like dignity and equality.

2. Over-Reliance on Algorithms

  • Platforms like CPGRAMS may solve tickets quickly but don’t always ensure real justice.
  • Citizens are increasingly treated as data entries, not as active participants in decision-making.

3. Too Much Central Control, Less Local Voice

  • Many new systems ignore local-level decision-making and Gram Sabha inputs.
  • The result: local knowledge and community participation are pushed aside in favour of one-size-fits-all solutions.

4. Crisis of Democratic Visibility

  • Thinkers like Rancière and Agamben raise a key concern:
    • The real issue is: “Whose pain is being seen, heard, and acted upon—not just calculated by a machine.”
  • Suffering must be politically recognised, not just digitally recorded

Way Forward: Making Welfare More Inclusive and Accountable

1. Promote Democratic Resilience

  • As per Nassim Taleb, overly connected systems can collapse badly when they fail.
  • Therefore, we need to:
    • Add offline options as backups.
    • Ensure human checks in the system.
    • Guarantee a “right to explanation” when decisions are made by algorithms.

2. Boost Local Accountability

  • Strengthen Gram Sabhas, Self-Help Groups, and frontline workers to regularly check and give feedback.
  • Use successful local models like:
    • Kudumbashree (Kerala)
    • Gram Panchayat Development Plans (GPDP)

3. Introduce Community Impact Audits

  • A suggestion from the UN Special Rapporteur on Extreme Poverty.
  • These audits should be part of programmes like the Rashtriya Gram Swaraj Abhiyan to evaluate the real impact on communities.

4. Strengthen RTI and Transparency

  • Fill all vacant posts in the Central Information Commission (CIC).
  • Clear the backlog of RTI applications.
  • Spread more awareness about RTI rights among citizens to improve government accountability.

5. Encourage Platform Cooperatives

  • Let States and communities create their own customised welfare systems.
  • Move away from rigid, uniform platforms and promote digital diversity that fits local needs.

Conclusion

India’s welfare state stands at a crossroads. While digital governance promises reach and speed, it must not replace citizen rights with data metrics. A Viksit Bharat will be realised not merely through flawless systems, but through citizen-centric, democratic, and resilient institutions that recognise dignity, care, and constitutional guarantees as the core of governance.

Upsc prelims practice qsn-

Q.Which of the following best describes the term “Algorithmic Insulation” as used in welfare governance?

A. Use of artificial intelligence for increasing automation in agricultural subsidies
B. Removal of political and human discretion from welfare service delivery through automation
C. Integration of biometric data for identification of beneficiaries
D. Development of indigenised algorithms to detect cyber security threats in e-governance

Answer: B


Explanation:
Algorithmic insulation refers to the depoliticisation of welfare governance where decisions are left to automated processes, distancing them from human and democratic oversight.

UPSC Mains pyq-

Q. The rights-based approach to welfare in India has transformed into a performance-based approach. Critically examine this shift in the context of recent governance reforms.(2022)

SOURCE- THE HINDU

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