Relevance of UBI
India's economy is experiencing jobless growth, where increased productivity and output are not leading to more job creation.
Growing economic inequality is partly due to the mismatch between job creation and the rising wealth of a few.
Advances in AI and automation are reducing the demand for traditional jobs, contributing to job loss and stagnation.
Addressing Employment Challenges
UBI could stimulate demand by providing a basic income to everyone, thus potentially increasing consumer spending and economic activity.
It offers a safety net to individuals who are unemployed or underemployed, ensuring a basic level of financial security.
Current State of UBI in India
India already has various cash transfer schemes that act as partial forms of UBI, such as those for farmers, women, and the unemployed.
Implementing a pure UBI in India might be challenging due to existing semi-UBI programs and the financial cost.
Technological Advancement
The rise of AI and automation is leading to job displacement, particularly in sectors like banking and retail, where traditional jobs are being replaced by technology.
Jobs are shifting from traditional industries to digital and tech sectors, which often require different skills and may not immediately compensate for job losses.
Feasibility and Sustainability
Implementing UBI requires substantial financial resources, which may be challenging given India's current fiscal constraints.
Adequate funding for UBI could involve increasing direct taxes or reallocating existing budgetary resources, which requires political will and structural changes.
Social and Economic Implications
Enhancing existing social safety nets and ensuring their universal application may be a more immediate and feasible step compared to full UBI.
There are concerns that UBI could affect work incentives, with debates on whether providing income without requiring work could impact motivation and societal attitudes towards employment.
Policy and Implementation
Investing in education and skills training can help address the gap between current job demands and the skills of the workforce, potentially mitigating some negative impacts of technological advancements.
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