There is a widespread dialogue that India is heading towards Universal Basic Income.I think this is the right time to analyze this concept and understand whether this is the right time for India to adopt it.
So, what is UBI:
It is an unconditional basic money that is given to every citizen of the country to live a dignified life even if she/he is involved in a low paid job or preferred not to work. Western countries are looking at this option to protect their citizens from the disadvantages created by globalization(immigration-loss of jobs) and technological advancement(artificial intelligence -job loss).
Does India need it?
I do not think that the time is ripe for India to go for UBI. There is immense income inequality in our country.Any welfare scheme that treats the rich and the poor equally will prove to be regressive and it would also result in decreased resources from the poor's share.
The unemployment question in India is something that is to be answered by investing in the manufacturing sector that needs huge capital resources.So there is no utter need to give that basic money to everybody instead jobs must be created and disguised unemployment is to be tackled.
India is already taking care of its poor by extending food and wage security to its poor-PDS and MGNREGA.There are huge leakages in this system which some argue to be handled and then can implement UBI.But loopholes cannot be an excuse to increase fiscal burden.Instead, they are to be handled effectively.
The way forward:
It is advisable for us to go for a direct benefit transfer system(targeted basic income) so that the drawbacks of welfare in kind can be reduced and the objective of diversification of food intake(to tackle malnutrition) can also be met.
So, what is UBI:
It is an unconditional basic money that is given to every citizen of the country to live a dignified life even if she/he is involved in a low paid job or preferred not to work. Western countries are looking at this option to protect their citizens from the disadvantages created by globalization(immigration-loss of jobs) and technological advancement(artificial intelligence -job loss).
I do not think that the time is ripe for India to go for UBI. There is immense income inequality in our country.Any welfare scheme that treats the rich and the poor equally will prove to be regressive and it would also result in decreased resources from the poor's share.
The unemployment question in India is something that is to be answered by investing in the manufacturing sector that needs huge capital resources.So there is no utter need to give that basic money to everybody instead jobs must be created and disguised unemployment is to be tackled.
India is already taking care of its poor by extending food and wage security to its poor-PDS and MGNREGA.There are huge leakages in this system which some argue to be handled and then can implement UBI.But loopholes cannot be an excuse to increase fiscal burden.Instead, they are to be handled effectively.
The way forward:
It is advisable for us to go for a direct benefit transfer system(targeted basic income) so that the drawbacks of welfare in kind can be reduced and the objective of diversification of food intake(to tackle malnutrition) can also be met.
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