Table of Contents
THE CONTEXT: India’s low female labor force participation and gender inequality are stark challenges, with direct benefit transfers (DBT) emerging as a potential tool for women’s financial empowerment. The impact and politics of DBT schemes across different states in India need a critical appraisal.
WOMEN’S LABOR FORCE PARTICIPATION AND GENDER GAP STATISTICS
- India’s female labour force participation rate is just 28%.
- One out of three young people is not engaged in education, employment or training, with women making up 95% of this group.
- For every five men in managerial positions, only one is a woman.
- India ranked 127th out of 146 countries in the Global Gender Gap Index 2023.
- Three out of 10 women aged 18-49 years have experienced violence from their spouses (according to a Niti Aayog survey).
HOUSEHOLD SPENDING PATTERNS:
- The bottom 20% of rural households spend 53% of their income on food.
- The bottom 20% of urban households spend 49% of their income on food.
DBT SCHEME STATISTICS:
- 53 ministries under the Union government-run 315 DBT schemes.
- 13 DBT schemes are related to the Ministry of Women and Child Development.
- The Ministry of Women and Child Development ranks 31st in DBT Performance Rankings.
IMPACT OF DBT SCHEMES ON WOMEN: Amartya Sen’s Pratichi Trust analysed West Bengal’s Lakshmir Bhandar scheme and has the following findings:
- 4 out of 5 women spend the money at their own will.
- 1 out of 10 women decide how to spend the money after discussing it with their husbands.
- Women reported improved positions within their families.
IMPEDIMENTS IN UNIVERSALISATION OF DBT SCHEMES:
- Limited Accessibility: Many citizens face difficulties in enrolling due to lack of accessibility or proximity to enrollment centers, especially in rural and remote areas.
- Infrastructure Gaps: Many rural and tribal areas lack adequate banking facilities, road connectivity, and internet infrastructure needed for DBT implementation.
- Financial Literacy: There is a need to enhance financial literacy and awareness among beneficiaries about DBT schemes.
- Documentation Issues: Beneficiaries often face delays and difficulties in procuring required documentation for enrollment.
- Payment Disruptions: Issues like spelling errors in Aadhaar details, pending KYC, frozen/inactive bank accounts, and mismatches between Aadhaar and bank account details can cause payment failures.
- Exclusion Errors: Some eligible beneficiaries may be left out due to issues in the identification and enrollment process.
- Operational Challenges: Problems like delays in fund transfers, inadequate grievance redressal mechanisms, and administrative hurdles can affect implementation.
- Authentication Failures: Biometric authentication failures, especially fingerprint mismatches, can prevent beneficiaries from accessing their entitlements.
- Connectivity Issues: Poor connectivity in remote areas affects real-time authentication and transactions.
- Privacy Concerns: Using Aadhaar for DBT raises data privacy and security concerns.
- Lack of Standardization: The absence of standardized mechanisms for state government schemes affects efficiency and reporting.
- Last Mile Delivery: Ensuring efficient last-mile delivery of benefits, especially in remote areas, remains challenging.
THE WAY FORWARD:
- Addressing Exclusion Risks: A 2019 study found that women were often unaware of their entitlements or how to use their accounts. To address this, implement targeted awareness campaigns, provide user-friendly interfaces and processes and ensure robust grievance redressal mechanisms.
- Complementary Policies”: Cash transfers alone are not sufficient. They must be accompanied by measures to improve women’s access to education, healthcare, and employment opportunities.” Initiatives like Beti Bachao Beti Padhao could be integrated with the DBT scheme to create a comprehensive approach to women’s empowerment.
- Robust Monitoring and Evaluation: Regular impact assessments are essential to understand how DBT affects women’s empowerment, household dynamics, and overall well-being. Madhya Pradesh’s unconditional cash transfer pilot used randomized controlled trials to assess impact, providing a model for rigorous evaluation.
- Addressing Infrastructure Gaps: Last-mile connectivity remains a challenge in many parts of India. Strengthening banking infrastructure and digital connectivity in rural areas is essential for effective DBT implementation. The India Post Payments Bank (IPPB) model could be expanded to improve last-mile financial services delivery by leveraging the extensive postal network.
- Financial Literacy Integration: Financial literacy is crucial for the success of DBT schemes. Women must be empowered to make informed decisions about using their benefits. The Pradhan Mantri Jan Dhan Yojana (PMJDY) has successfully combined bank account opening with financial literacy initiatives, providing a model for integrating education with benefit delivery.
- State-Level Customization: Given India’s diversity, a one-size-fits-all approach may not work. States should have the flexibility to adapt the scheme to local contexts while adhering to national guidelines. Madhya Pradesh’s Ladli Behna Yojana, tailored to the state’s needs, provides monthly transfers of Rs. 1,000 to women aged 23-60.
- Universal Coverage with Targeted Approach: “A universal basic income for women could be transformative, providing financial independence and reducing gender inequalities. However, careful targeting is crucial to ensure benefits reach the most vulnerable.” The scheme could adopt a self-targeting mechanism like MGNREGA, where all women are eligible but those with greater need are more likely to participate.
THE CONCLUSION:
While DBT schemes show promise in enhancing women’s financial autonomy and decision-making power, their political impact varies across states. A national rollout of DBT targeting women could be a step towards addressing India’s gender disparities and boosting female economic participation.
UPSC PAST YEAR QUESTIONS:
Q.1 Distinguish between ‘care economy’ and ‘monetized economy’. How can care economy be brought into monetized economy through women empowerment? 2023
Q.2 Women empowerment in India needs gender budgeting. What are the requirements and status of gender budgeting in the Indian context? 2016
MAINS PRACTICE QUESTION:
Q.1 International organizations have hailed the Direct Benefit Transfer (DBT) scheme as a ‘logistical marvel’. Discuss the DBT scheme’s critical advantages and suggest measures to improve its implementation in India further.
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