Social Security and Old-Age Income Protection for 450 Million Informal Workers: Evaluating the Expansion of Atal Pension Yojana (APY) and e-Shram Social Portability

LODHI ROAD RESEARCH COMPLEX: Academic scholars and public economists evaluating universal social security models for informal labor.

India stands at a pivotal demographic crossroads. While the nation currently reaps the economic dividends of a median population age of 28.4 years, demographic projections from the United Nations Population Fund indicate that the cohort of citizens aged 60 and above will surge from 149 million (10.5% of the population) in 2022 to over 347 million (nearly 20%) by 2050.

Crucially, more than 88% of India's 510-million-strong active workforce is employed within the unorganized or informal economy—ranging from agricultural tenant farmers and construction laborers to platform gig workers and street vendors. For these 450 million citizens, traditional defined-benefit civil pensions or corporate provident funds have historically been inaccessible. In response, the Ministry of Finance and PFRDA have expanded the Atal Pension Yojana (APY), linking guaranteed monthly pension tranches with universal digital identity via the e-Shram portal.