According to the Economic Survey 2016 – 17, Universal Basic Income (UBI) aims at achieving Mahatma Gandhi's objective of "wiping every tear from every eye". In this backdrop, explain the concept of UBI and discuss how it is expected to achieve the stated objective.
In short
Universal Basic Income is an unconditional cash transfer to all citizens that guarantees a minimum income floor, aiming to wipe every tear by cutting poverty, exclusion and indignity while respecting individual agency. The Economic Survey 2016-17 proposed INR 7,620 a year for 75% of the population, financed by rationalising subsidies.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 297 words
Economic Survey’s Proposal
A modest UBI of INR 7,620 annually for 75% of Indians, achievable by rationalizing subsidies and welfare schemes to improve efficiency and reduce leakages.
Implementation Challenges
Fiscal constraints and political feasibility create tension between universality and targeted transfers, as shown in the UBI implementation spectrum.
Poverty Alleviation and Dignity
UBI guarantees material security, addressing Gandhi’s vision of eradicating suffering and restoring dignity.
Social Justice
UBI reduces exclusion errors in targeted schemes, promoting inclusivity aligned with Gandhian values.
Empirical Evidence and Concerns
SEWA Bharat’s Madhya Pradesh pilot shows UBI recipients increased productive activities, countering fears of idleness.
Fiscal Sustainability
UBI must replace inefficient subsidies to be sustainable, requiring political will and administrative capacity, as seen in Andhra Pradesh.
Phased Pilots
Target vulnerable groups in Andhra Pradesh to build evidence and capacity.
Scheme Integration
Rationalize welfare programs to create fiscal space without abrupt withdrawal of food security or employment guarantees.
Digital Expansion
Strengthen JAM infrastructure and digital literacy in rural and tribal areas.
Community Engagement
Promote participatory governance for transparency and trust, reflecting Gandhian grassroots empowerment.
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