This is great news, as long as the program is well administered and transparent (usual caveat that accompanies any new policy announced by the Indian government).
BBC NEWS | South Asia | Social security for Indian poor
The Indian government has announced an ambitious social security scheme which is aimed at benefiting about 390 million poor, non-unionised workers. Once passed by parliament, the scheme will provide the workers with life insurance and disability protection.
Under the new scheme, the non-unionised, casual worker will be entitled to life insurance and health and disability benefits by contributing just one rupee (one cent) a day.
The government says it wants to help the under-privileged
The government and employers will also contribute an equal amount. Those earning less than 6,500 rupees ($160) annually will be designated as living below the poverty line, and their one-rupee share will be paid for by the federal government.
It is estimated that the government will need $22.2bn to implement the scheme.
Assuming a purchasing power exchange rate of approximately 14 for India (year 2000 value), this poverty rate works out to approximatey $1.25 per day, a little more generous than the world bank’s dollar a day PPP adjusted figure, but not really. I would guess that the poor would need a little more help, but it is a start, and a good first attempt to get some kind of safety net for most of the Indian workforce.