Universal Basic Income: The Case for UBI in India
Why in the news
An opinion piece argued that UBI should anchor India’s welfare model, given rising inequality, automation and climate-driven displacement. These are the author’s views, useful for essay and GS-style points.
Key facts
- Wealth Gini of India: 75 in 2023 (World Inequality Database); top 1% own 40% of wealth, top 10% hold 77%.
- GDP grew 8.4% in 2023-24, yet gains were unevenly spread.
- India ranked 126 of 137 in the World Happiness Report 2023.
- Automation could displace up to 800 million jobs worldwide by 2030 (McKinsey Global Institute).
- Cost: ₹7,620 per person a year is about 5% of GDP.
Arguments in favour
| Area | Point made |
|---|---|
| Administration | Use Aadhaar and DBT to simplify delivery, cut targeting errors and discretion, and remove poverty stigma |
| Economy | Cushions structural unemployment and enables reskilling, especially for informal and semi-skilled workers |
| Evidence | SEWA pilot (Madhya Pradesh, 2011-13); trials in Finland, Kenya and Iran improved mental health, food security and work participation |
| Democracy | Shifts politics from patronage and freebies to rights; voters press for education, health and law outcomes |
| Dignity | Recognises unpaid care work, mostly by women, and strengthens individual autonomy |
Implementation concerns
- Funding options: rationalising subsidies, progressive taxes, controlled deficit spending.
- The author says inflation fears are exaggerated; Weimar and Zimbabwe hyperinflation did not stem from modest cash transfers.
- Gaps remain in bank connectivity, digital literacy and last-mile access, notably in tribal and remote areas.
Way forward
- Begin with women, the elderly, disabled and low-income workers, then widen coverage as finances and systems allow.
- Keep PDS and MGNREGA running alongside UBI in the early phase.
Exam angle
- UBI: regular, unconditional cash to every citizen.
- Infrastructure suggested: Aadhaar, Jan Dhan and DBT.
- Pilot: SEWA, Madhya Pradesh, 2011-13.