ISS Previous Year Paper 2020 GS Solution Question 3(c) Universal Basic Income (UBI) and Its Feasibility in India

ISS Previous Year Paper 2020 GS Solution Question 3(c) Universal Basic Income (UBI) and Its Feasibility in India. Detailed answer discussing the concept, benefits, challenges, and practical considerations of implementing UBI.

ISS Previous Year Paper 2020 GS Solution Question 3(c) Universal Basic Income (UBI) and Its Feasibility in India

ISS Previous Year Paper 2020 GS Solution Question

Q.3(c) What is Universal Basic Income (UBI)? Critically examine its feasibility in India.

Answer :

Universal Basic Income (UBI) is a system of unconditional cash transfers in which every citizen receives a predetermined amount of money from the government on a regular basis. The objective is to provide a minimum level of income security and reduce poverty.

One of the major advantages of UBI is that it can help reduce poverty and income inequality. Direct cash transfers provide beneficiaries with greater flexibility in meeting their needs and can improve living standards.

UBI can also simplify welfare administration by reducing the complexity of multiple subsidy schemes. It may reduce leakages and improve efficiency in welfare delivery through direct benefit transfers.

Another benefit is that it provides financial security during periods of unemployment, economic distress, or technological disruptions that affect jobs.

However, implementing UBI in India faces several challenges. The most significant concern is its high fiscal cost. Providing income support to a large population would require substantial government expenditure and could place pressure on public finances.

There are also concerns that a universal scheme may divert resources from targeted welfare programs that specifically support vulnerable groups. Questions regarding the appropriate amount of transfer, funding mechanisms, and administrative feasibility remain important.

Given India's population size and development priorities, many experts suggest that a phased or targeted approach may be more practical than a fully universal system.

Conclusion

Universal Basic Income offers an innovative approach to poverty reduction and social protection. While it has the potential to improve economic security, its implementation in India requires careful assessment of fiscal sustainability, policy design, and integration with existing welfare programs.