Welfare Schemes are government-funded assistance programs designed to provide social security and support to vulnerable individuals and low-income families in India, aiming to reduce inequality and promote a higher standard of living. They are a broad concept encompassing various initiatives, classified as either Central Sector Schemes (CS), which are fully funded by the Union government, or Centrally Sponsored Schemes (CSS), which are mainly funded by the Centre but implemented by the states. The origin of India's welfare approach is rooted in the post-Independence commitment to a welfare state, drawing its constitutional mandate from Article 38 of the Constitution, which directs the state to secure a social order that minimizes inequalities in income and status. This commitment was further solidified with the establishment of the Planning Commission in 1950.
The mechanism of these schemes has evolved from universal provision to more targeted approaches, especially after the economic liberalization of 1991. A key mechanism is the provision of benefits, which can be in-kind, such as foodgrains under the National Food Security Act (NFSA), 2013, or cash transfers. The NFSA, for instance, legally mandates the coverage of two-thirds of India's population to ensure nutritional security. A significant connection is the use of Direct Benefit Transfer (DBT), which channels funds directly to beneficiary accounts, often linked to the Pradhan Mantri Jan Dhan Yojana (PMJDY), to reduce leakages and corruption.
Welfare schemes are closely connected to the Directive Principles of State Policy (DPSP) and are evaluated by institutions like the NITI Aayog. Recently, major schemes have undergone significant restructuring and expansion. For example, the erstwhile Mid-Day Meal Scheme (MDM), launched in 1995, was renamed the PM-POSHAN (Pradhan Mantri Poshan Shakti Nirman) Scheme in September 2021. Furthermore, the Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), launched in September 2018, was expanded in September 2024 to provide health coverage of up to ₹5 lakh per family per year to all senior citizens aged 70 and above, regardless of their income. The trend shows a shift towards rights-based entitlements, following the precedent set by the National Rural Employment Guarantee Act (NREGA) of 2005, which enshrined the "right to work" as a legal guarantee.