Speaking at a CII event in Lucknow, Nageswaran said Universal Social Security sets the ground for "perverse incentives" for people and discourages them from pursuing income-generating opportunities.
He opined that India is yet to reach such a state where Universal Social Security is a moral or economic necessity.
Such financial support may be confined to people who are not able to engage in economic activities and bring them to a point where they can meaningfully participate in the economy, he said.