A Beveridge Plan for India? Social Insurance and the Making of the “Formal Sector”

Abstract

AbstractThe article explores the history of the Employees’ State Insurance Act of 1948 (ESI), a law enacted in the first year of Indian independence. Global trends in social policy had influenced debates on a social insurance for Indian workers since the 1920s. Transformations of Indian industry, World War II, the post-war crisis, and the emerging economic policy of the postcolonial State then created conditions for legislation. Just as the international welfare discourse, Indian contributions included, converged on social welfare as a universal citizen right, the regulatory content of the health insurance scheme devised for India diverged from this normative consensus: the ESI Act remained strictly employment-based, contributed to an emerging structure of graded entitlements, and to the hardening of boundaries between what would later be called “formal” and “informal” labour. Simultaneously, it also generated horizons of expectation that continue to inform labour struggles.