UNIVERSAL BASIC INCOME
News:
In India, Universal Basic Income (UBI) is being considered as a way to tackle unemployment, inequality, and the impact of automation. Supporters argue it could replace inefficient welfare systems and encourage youth to pursue entrepreneurship and skill development. However, its feasibility is debated, with estimates suggesting it could cost about 1% of GDP per capita. Implementing UBI could also potentially boost economic growth by providing a safety net for all citizens.
Key Points in Favor of Universal Basic Income (UBI):
Jobless Growth: Economic output and productivity are rising, but employment generation is not keeping pace. UBI can address the income gap caused by this trend. For example, as per ILO, 83% of the unemployed in India are youth.
Automation and AI: The rise of automation and artificial intelligence is leading to job losses, as noted by the ILO’s World Employment and Social Outlook. UBI could offer a safety net for those affected by these technological changes.
Boosting Demand: Unemployment results in lower demand in the economy. Providing a basic income could stimulate demand and boost economic growth.
Existing Schemes: India already has semi-UBI programs through cash transfers like PM-KISAN for farmers. Expanding these schemes could be a logical step toward full UBI implementation.
Inequality: UBI could help reduce income inequality by addressing the wealth concentration in high-paying jobs and supporting the rise of gig work, which has contributed to growing disparities in income.
