Topic: Issues Relating to Development and Management of Social Sector/Services
Q3. Examine the viability of implementing Universal Basic Income (UBI) in India, considering the challenges posed by its large informal economy. (150 words)
Difficulty level: Moderate
Reference: The Hindu
Why the question:
Is it time for India to introduce a Universal Basic Income?
Key Demand of the Question:
Examine the feasibility of implementing Universal Basic Income (UBI) in India, focusing on the challenges associated with its large informal economy.
Structure of the Answer:
Introduction:
Briefly introduce the concept of Universal Basic Income (UBI) and its potential benefits, such as poverty reduction and economic security.
Body:
First part: Viability of UBI in India:
Economic Support, Poverty Alleviation, Administrative Simplicity
Second part: Challenges in Implementation:
Large Informal Economy, Fiscal Constraints, Potential Inflationary Impact, Work Disincentive Concerns
Third part: Suggestions
Targeted Implementation, Gradual Integration with Existing Schemes, Data-Driven Approach
Conclusion:
Summarize the potential of UBI as a transformative tool for economic support in India.
