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3) The announcement of Pradhan Mantri Kisan Samman Nidhi is an indicator that India is now seriously toying with the idea of targeted cash transfers. Critically analyze the effectiveness of targeted cash transfers?(250 words)

Topic– Welfare schemes for vulnerable sections of the population by the Centre and States and the
performance of these schemes

3) The announcement of Pradhan Mantri Kisan Samman Nidhi is an indicator that India is now seriously toying with the idea of targeted cash transfers. Critically analyze the effectiveness of targeted cash transfers?(250 words)

The hindu

Why this question

This article discusses the form that direct income transfer scheme will take in a country like India and analyzes such a scheme for its effectiveness in tackling inefficiencies in welfare delivery channels.

Key demand of the question

The question expects us to explain the form that direct income transfer has taken in the country by explaining about Pradhan Mantri Kisan Samman Nidhi. Thereafter , we need to discuss the pros and cons of such a measure and give our view on its effectiveness.

Directive word

Critically analyze – When asked to analyze, you  have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary. When ‘critically’ is suffixed or prefixed to a directive, all you need to do is look at the good and bad of something and give a fair judgement.

Structure of the answer

Introduction – Explain that India has discussed about universal basic income and direct income transfer is thought to bring about efficiencies in welfare delivery mechanism.

Body

  • Explain about the scheme
    • Vulnerable landholding farmer families, having cultivable land up to 2 hectares, will be provided direct income support of ₹6,000 a year
  • Discuss the pros and cons of such direct income transfer mechanisms
    • inefficiencies of existing social security interventions  is sought to be replaced with direct cash transfers
    • Highlight that such income transfers are also riddled with inefficiencies
    • Moreover, the state still has to invest in strengthening the basic infrastructure related to health etc

Conclusion – Give your view on the effectiveness of such a measure and discuss way forward.