Over the last week, newspapers have reported that the Prime Minister Narendra Modi-led government could lay the foundations for a universal basic income in India this year. As early as October 2016, Chief Economic Advisor Arvind Subramanian confirmed that the idea of offering a regular payment from the state to all citizens regardless of their employment status would make its way to the Economic Survey, which is tabled in Parliament ahead of the Budget.
“You are really on the ball here,” Subramanian said when asked about a basic income in September at a conference in Odisha. “In fact, am a bit unhappy with you for stealing the thunder of the next [economic] survey because it is going to be one of the big topics.”
Most speculation suggests that the Economic Survey will simply include a chapter engaging with the issue and its relevance to India, without an actual announcement moving forward on it in the Budget. But even the idea represents a monumental shift in the way the Indian state approaches the concept of social security and, if implemented, would be one of the most significant systemic reforms ever.
What is it?
According to the Basic Income Earth Network, a universal basic income is a “periodic cash...
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