Case for Universal Basic Income to Address Wealth Inequality and Job Displacement in India
Amidst rising wealth inequality and automation-driven job insecurity, there is a growing call for Universal Basic Income (UBI) in India. India's Gini coefficient stands at 75, with the top 1% holding 40% of national wealth. UBI is proposed as a periodic, unconditional cash transfer to provide economic security and bypass administrative inefficiencies of targeted welfare. While funding is a major concern (estimated at 5% of GDP), pilot studies in Madhya Pradesh showed improved nutrition and school attendance. A phased rollout for vulnerable groups is suggested as a practical implementation strategy.
Key Points
- India ranks 4th globally in income inequality according to the Press Information Bureau.
- Automation could displace up to 800 million jobs globally by 2030, making UBI a potential safety net.
- UBI aims to provide a floor of economic security, restoring consumer demand and dignity to unpaid labor.
- A full UBI would cost approximately 5% of India's GDP, requiring significant fiscal restructuring.
Exam Facts
- India's Gini coefficient: 75 in 2023
- 2023 World Happiness Report Rank: 126 out of 137
- Estimated UBI cost: 5% of GDP
- Top 1% wealth share: 40% of national wealth
Read it. Retain it. Recall it.
Get spaced-repetition flashcards, daily quizzes and offline access — free on Android.