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8) Universal Basic Income has its own pros and cons. Discuss in the context of Indian economy.(250 words)

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.Inclusive growth and issues arising from it.

8) Universal Basic Income has its own pros and cons. Discuss in the context of Indian economy.(250 words)



Why this question

The Union government has recently mooted the idea of UBI for BPL Indian citizens. In this context it is important to discuss the pros and cons of the UBI especially in the context of Indian economy.

Directive word

Discuss- this is an all-encompassing directive which mandates us to write in detail about the key demand of the question. we also have to discuss about the related and important aspects of the question in order to bring out a complete picture of the issue in hand.

Key demand of the question.

The question wants us to write in detail about the UBI and bring out its positive points as well as cons/ limitations.

Structure of the answer

Introduction– write a few introductory lines about the central government’s idea to introduce UBI and also mention about the state of Sikkim.


  1. Discuss about UBI. E.g It characterises the basic income in five divisions — Periodic (being paid at regular intervals, not lump sum), cash payment (not in kind or vouchers, leaving it on the recipient to spend it as they like), individual (not to households or families), universal (for all), and unconditional (irrespective of income or prospects of job).
  2. Discuss the pros and advantages of UBI. E.g A Universal Basic Income promotes many of the basic values of a society which respects all individuals as free and equal. It promotes liberty because it is anti-paternalistic, opens up the possibility of flexibility in labour markets. It promotes equality by reducing poverty. It promotes efficiency by reducing waste in government transfers. And it could, under some circumstances, even promote greater productivity etc.
  3. Discuss the cons/ limitations of the UBI. E.g None of the places where UBI has been tried have levels of income disparity that exist in India. So, while the idea might work in Sikkim, it might not in, say, Bihar; The reason for maintaining conditional social assistance is to “prioritize those at the bottom of the [income] distribution; access to banking is poor in rural and backward areas; issue of gender equality as the income would be controlled by the males of the family; amount of financial resources required etc.

Conclusion- based on your discussion, form a fair and a balanced conclusion on the given issue.