Income: A Cost–Benefit Analysis for the Indian Welfare Framework

The welfare system of India is currently facing a major challenge. The ongoing issues of poverty, growing disparity, informal labor, and tight government budget have led to a revival of discussions on the best social protection model. The two rival yet connected concepts Universal Basic Income (UBI) and Universal Basic Services (UBS) have become the focal point of the debate. UBI advocates for the provision of money to each individual while UBS deals with the government’s responsibility to offer basic amenities such as health care, schooling, housing, transportation, and food at no or very low cost. In this paper, a cost-benefit comparison of UBI and UBS within the Indian welfare system is attempted. Their economic feasibility, administrative efficiency, distributive impact, and the long-term implications for social justice and state capacity are assessed. The article concludes that UBI brings with it the benefits of simplicity and self-determination, but UBS is more in line with India’s socio-economic conditions and constitutional values, thus being the more sustainable welfare approach in India.