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    ISAS Briefs

    Quick analytical responses to occurrences in South Asia

    263 : Direct Cash Transfer of Subsidies: A Game-Changer for India?

    Amitendu Palit, Head (Partnerships & Programmes) and Visiting Senior Research Fellow at the ISAS

    8 January 2013

    From 1 January 2013, India rolled out the much-hyped direct cash transfer of subsidies scheme. Widely tipped as a ‘game-changer’, the scheme is being heavily discussed for both its economic and political significance. Economically, it is expected to be a significant reform measure for improving distribution of subsidies by eliminating ‘leakages’ from the existing system of transfer in kind. Politically, the ruling Congress hopes to capitalise on the scheme’s spirit of ‘Aapka Paisa, Aapke Haath’ (‘Your money in your hands’) by publicising it is as a move pioneered by the Congress party for putting money directly in the hands of people.