In News: The Economic Survey 2025–26 flags a social sector paradox in India, wherein improvements in select social indicators—especially health—have not been matched by comparable progress in education quality and urban capacity.
What is the Social Sector Paradox?
The social sector paradox refers to a mismatch between expanded access to social services and stagnant foundational outcomes.
In India’s case:
- Health outcomes such as life expectancy and maternal–child mortality have improved steadily,
- However, education quality and urban institutional capacity have failed to keep pace with rising enrolment, population growth, and economic expansion.
Key Trends Highlighted by the Survey
1. Education: Enrolment without Learning
- Near-universal enrolment at the elementary level, but low foundational learning in reading and arithmetic.
- Expected years of schooling (≈13 years) remain below major emerging and developed economies.
- Significant dropouts after Grade VIII; secondary net enrolment stands at only 52.2%.
- Indicates weak transition from access to human capital formation.
2. Health: Sustained Gains with New Risks
- Sharp decline in maternal mortality and under-five mortality.
- Increase in life expectancy to over 70 years.
- Expansion of health insurance coverage and digital health initiatives.
- Emerging challenges:
- Rise in non-communicable diseases (NCDs),
- Increasing obesity and lifestyle-related disorders,
- Need for preventive and primary healthcare focus.
3. Urbanisation: Engines of Growth, Weak Foundations
- Indian cities generate a disproportionate share of GDP and employment.
- However, urban governance is constrained by:
- Low municipal revenue mobilisation,
- Inadequate capacity in housing, transport, sanitation, and climate resilience,
- Weak fiscal and administrative autonomy of Urban Local Bodies (ULBs).
- Poor urban finance threatens productivity and liveability.
Implications of the Social Sector Paradox
1. Human Capital Risks
- Poor learning outcomes and adolescent dropouts undermine India’s demographic dividend.
2. Persistence of Inequality
- Rural populations, urban poor, and marginalised groups face layered disadvantages, despite improved enrolment and access.
3. Urban Growth Bottlenecks
- Under-funded and under-capacitated cities risk becoming constraints rather than drivers of economic growth.
IAS-2026 - OPTIONAL / GEOGRAPHY / PUBLIC ADMINISTRATION / SOCIOLOGY / ANTHROPOLOGY / ORIENTATION ON 03 & 04-10-2025 
