UBI in India

In this article we will discuss UBI in India (Pros)

In this article, we will discuss UBI in India (Pros). So, let’s get started.

UBI in India (Pros)

  • Social Justice: No society can be just or stable if it does not give all members of the society a stake. A Universal Basic Income promotes many of the basic values of a society which respects all individuals as free and equal.
  • UBI is a radical and compelling paradigm shift in thinking about both social justice and a productive economy.
  • Administrative Efficiency: A UBI will reduce the burden of financing a plethora of separate government schemes and administrative burden of implementation.
  • The UBI, by design, should effectively tackle issues related to misallocation and leakage because transfers are directed straight to the beneficiaries’ bank accounts.
  • Finally, given the fewer avenues for leakages, monitoring a UBI would be easier than many other schemes.
  • Employment: UBI is an acknowledgement of the government’s duty to guarantee a minimum living standard ( Article 43 of Indian Constitution) is even more urgent in an era of uncertain employment generation.
  • Moreover, UBI could also open up new possibilities for labour market.
  • They allow for more non-exploitative bargaining since individuals will no longer be forced to accept any working conditions, just so that they can subsist.
  • Insurance Against Shocks: Poor households often face multiple shocks such as bad health, job loss or aggregate shocks such as crop loss, water borne diseases, loss of property and natural disasters.
  • The UBI income floor will provide a safety net against health, income and other shocks.
  • Freedom of Choice: A UBI treats beneficiaries as agents and entrusts citizens with the responsibility of using welfare spending as they see best, this may not be the case with in-kind transfers.
  • Improvement in Financial Inclusion: Payment transfers will encourage greater usage of bank accounts, leading to higher profits for banking correspondents (BC) and an endogenous improvement in financial inclusion.
  • Credit increased income will release the constraints on access to credit for those with low income levels.
  • Women Empowerment: In 2011, a pilot study of Universal Basic Income was conducted in 8 villages of Madhya Pradesh for 18 months.
  • Reviewing the UBI trial in India (2013-2014), SEWA Bharat and UNICEF concluded that “women’s empowerment was one of the more important outcomes of this experiment,”
  • Women receiving UBI participated more in household decision making, and benefited from improved access to food, healthcare, and education.

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