Policy Update
Deepankshi Agnihotry
Seventy-six years into independence, the promise of socio-economic and political justice still seems out of reach for half the population. As highlighted by the ILO at the 68th Commission on the Status of Women, women worldwide continue to earn nearly 20% less than men and perform three-quarters of unpaid care work. This issue is particularly pronounced in India, where mothers are expected to fulfill caregiving duties without recognition or support.
To provide financial independence, governments across the world, including India, have increasingly relied on cash transfer schemes. These schemes have emerged as crucial policy instruments, transforming behavior, empowering women, alleviating poverty, and strengthening economic stability.
Cash transfer schemes fall under both the State List and Concurrent List of the Seventh Schedule of the Indian Constitution, depending on their implementation structure. While these schemes have gained popularity in recent years, they are not a new phenomenon. They have existed since market liberalization, reflecting a shift from a welfare state to a corporate welfare state, where targeted financial support replaces broad-based subsidies. They align with the Directive Principles of State Policy (DPSP), particularly Article 39, which emphasizes the state’s responsibility toward the welfare and empowerment of vulnerable sections, including women.
Cash transfer schemes are broadly classified into Conditional Cash Transfers (CCTs) and Unconditional Cash Transfers (UCTs), each serving distinct policy objectives.
Conditional Cash Transfer (CCT) Schemes
Conditional Cash Transfer (CCT) schemes operate on the demand side, shifting focus from supply-side service delivery to direct financial incentives for socially beneficial behaviors like education, healthcare, and nutrition. By targeting human capital formation, CCTs enhance long-term economic efficiency while providing short-term relief.
Governments across Africa and Asia use CCTs to combat multidimensional poverty, ensuring aid is used for essential services rather than general consumption. In India, they mitigate negative incentives of subsidies (e.g., free electricity) by directing spending toward critical needs. As economic growth alone fails to reduce inequalities, CCTs help address market failures, reduce poverty transmission, and support marginalized communities.
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Key CCT Programs in India
CCTs have been a game-changer for women’s empowerment in India. Major central government schemes include:
- Beti Bachao Beti Padhao (BBBP) – Encourages girl child education and addresses gender imbalances.
- POSHAN Abhiyaan – Focuses on maternal and child nutrition, reducing malnutrition rates.
- Pradhan Mantri Matru Vandana Yojana (PMMVY) – Supports pregnant and lactating mothers through direct cash benefits.
- MUDRA Yojana – Fuels women-led entrepreneurship by providing credit support to Self-Help Groups (SHGs).
Table 1:Conditional cash transfer-Center
| Scheme Name | Launch Year | Benefit | Eligibility | Condition |
| Pradhan Mantri Matru Vandana Yojana (PMMVY) | 2017 | ₹5,000 (in 3 installments) | Pregnant & lactating women for first child | Antenatal check-ups, institutional delivery, child vaccination |
| Sukanya Samriddhi Yojana (SSY) | 2015 | Tax-free savings + high interest (8.2% in 2024) | Girl child below 10 years | Deposit required until girl turns 21 |
| Beti Bachao Beti Padhao (BBBP) | 2015 | Varies (state-specific financial aid) | Girl child in districts with poor sex ratio | Birth registration, school admission, completion of education |
| MUDRA Yojana (for Women Entrepreneurs) | 2015 | Loans up to ₹10 lakh | Women entrepreneurs | Business setup and economic activity |
| Janani Suraksha Yojana (JSY) | 2005 | ₹1,400 (rural) / ₹1,000 (urban) | Pregnant women below poverty line | Institutional delivery in government hospitals |
| POSHAN Abhiyaan (PM Nutrition Mission) | 2018 | Direct Benefit Transfer (DBT) for nutrition support | Pregnant women, lactating mothers, and children | Must participate in Anganwadi programs |
| Pradhan Mantri Ujjwala Yojana (PMUY) | 2016 | Free LPG connection + ₹200 subsidy/cylinder (12 refills per year) | Women from BPL families | Must apply under the scheme and use LPG |
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At the state level, various CCT programs cater specifically to women’s socio-economic upliftment, ensuring better education, healthcare, and financial inclusion.
Table 2: Conditional cash transfer scheme-State
| State | Scheme Name | Launch Year | Benefit | Eligibility | Condition |
| Uttar Pradesh | Mahila Samarthya Yojana | 2022 | Financial support | Women in self-help groups (SHGs) | Participation in SHGs, skill development |
| Bihar | Mukhyamantri Mahila Udyami Yojana | 2021 | ₹10 lakh loan, ₹5 lakh grant | Women entrepreneurs | Business setup & economic activity |
| Rajasthan | Shubh Lakshmi Scheme | 2019 | ₹50,000 (one-time) | First-born girl child in BPL families | Birth of a girl child |
| Odisha | Subhadra Yojana | 2024 | ₹10,000/year (₹5,000 in 2 installments) | Women aged 21-60 | Five-year tenure with payments on Raksha Bandhan & Women’s Day |
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Unconditional Cash Transfer (UCT) Schemes
Unconditional Cash Transfer (UCT) schemes also function on the demand side, but unlike CCTs, they do not impose behavioral conditions. Instead, they increase liquidity by directly putting money into the hands of individuals, particularly women.
Women are widely considered financially responsible decision-makers, ensuring that UCT benefits translate into household well-being, education, and economic growth. Moreover, UCTs require less complex policy formulation and face fewer bureaucratic hurdles, reducing red tape and ensuring faster implementation.
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Table 3: Unconditional cash transfer schemes- Center
| Scheme Name | Launch Year | Benefit | Eligibility |
| Indira Gandhi National Widow Pension Scheme (IGNWPS) | 2009 | ₹300–₹500/month (varies by state) | Widows aged 40-59 below poverty line |
| Indira Gandhi National Old Age Pension Scheme (IGNOAPS) | 2007 | ₹200-₹500/month | Women aged 60+ below poverty line |
| Indira Gandhi National Disability Pension Scheme (IGNDPS) | 2009 | ₹300-₹500/month | Women with disabilities aged 18-59 |
| Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) | 2019 | ₹6,000/year (paid in 3 installments) | Women farmers with small landholdings |
| National Family Benefit Scheme (NFBS) | 1995 | ₹20,000 (one-time) | BPL families where the primary breadwinner dies |
| Vivad se Vishwas Scheme (Women Entrepreneurs – MSMEs) | 2023 | Financial relief, GST amnesty, and MSME support | Women MSME owners facing financial disputes |
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Table 4 :Unconditional cash transfer schemes-State
| State | Scheme Name | Launch Year | Benefit | Eligibility |
| Delhi | Mahila Samriddhi Yojana | 2025 | ₹2,500/month | Women from economically weaker sections |
| Maharashtra | Majhi Ladki Bahin Yojana | 2025 | ₹1,500/month + 3 LPG cylinders/year | Women aged 21-65 |
| Haryana (BJP) | Proposed Women-Centric Scheme | 2025 (proposed) | ₹2,100/month | Women voters in Haryana |
| Haryana (Congress) | Proposed Women-Centric Scheme | 2025 (proposed) | ₹2,000/month | Women aged 18-60 |
| Jharkhand | Mukhyamantri Maiya Samman Yojana | 2024 | ₹1,000/month | Women aged 21-50 from weaker sections |
| Madhya Pradesh | Ladli Behna Yojana | 2023 | ₹1,250/month | Women meeting DBT & Aadhaar criteria |
| Karnataka | Gruha Lakshmi Yojana | 2023 | ₹2,000/month | Women heads of BPL families |
| Tamil Nadu | Kalaignar Magalir Urimai Thittam | 2023 | ₹1,000/month | Women aged 21+, meeting income & land criteria |
| Rajasthan | Indira Gandhi Mahila Samman Yojana | 2023 | ₹1,000/month | Women heads of families |
| West Bengal | Lakshmi Bhandar Scheme | 2021 | ₹1,000/month (₹1,200 for SC/ST) | Women aged 25-60 enrolled in ‘Swasthyasathi’ |
| Assam | Orunodoi Scheme | 2020 | ₹1,250/month | Women from economically weaker sections |
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A notable example is West Bengal’s Lakshmi Bhandar Scheme, where recipients used allowances for essential household expenses, education, healthcare, and small business ventures. The scheme exemplifies how direct financial support enhances economic stability while empowering women as financial decision-makers
Way forward
Cash transfer schemes, primarily targeting economically weaker sections, backward classes, and Scheduled Tribes, have played a crucial role in addressing multidimensional poverty and promoting economic empowerment, particularly for women. By enhancing purchasing power and incorporating behavioral economics into development policies, these schemes have contributed to short-term financial stability. However, their rising expenditure has also placed a significant strain on fiscal resources. For instance, Maharashtra’s ₹2,100 monthly transfer to poor beneficiaries costs over ₹5,000 crore per month, with additional benefits, such as higher pensions, potentially increasing the annual financial burden to ₹60,000 crore. Similarly, Jharkhand’s increased payout of ₹2,500 to approximately 48 lakh women is expected to push its outlay to ₹14,400 crore despite the state’s substantial revenue from mineral taxes.
The Supreme Court recently expressed concerns over the indiscriminate announcement of such schemes, particularly during elections, cautioning against the creation of a “class of parasites” unwilling to work. The effectiveness of cash transfers in influencing voter turnout was notably observed in the recent Delhi elections, underscoring their political appeal. However, while these schemes provide immediate relief, they are not a panacea for women’s economic empowerment. Sustainable development requires a more comprehensive approach integrating cash assistance with education, skill development, and employment opportunities. For India to achieve the vision of Viksit Bharat @2047, financial aid must serve as a stepping stone to self-reliance rather than fostering long-term dependency.
References
Government and Institutional Reports
Academic Articles
News Articles & Reports
About The Contributor: Deepankshi Agnihotry is a research intern at IMPRI and holds a postgraduate degree in Electronics, is curious and passionate about sustainability and impactful policy solutions.
Acknowledgement: The author would like to express sincere gratitude to Dr Arjun Kumar, Dr Vaishali Singh, Aasthaba Jadeja and the IMPRI team for giving the opportunity for writing the article.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
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