India Expands Unconditional Cash Transfer Programs for Women Across States

India is implementing one of the world's largest social-policy initiatives involving unconditional cash transfers to women. This program aims to provide financial support to adult women, acknowledging their domestic and care work.### Scope and ImplementationApproximately 118 million adult women across 12 Indian states currently receive these unconditional cash transfers. Beneficiaries in states such as Maharashtra (age 21-65) receive monthly transfers. For instance, Premila Bhalavi in Madhya Pradesh receives 1,500 rupees ($16) monthly, which she reports using for medicines, vegetables, and her son's school fees. The monthly transfer amounts range from 1,000 to 2,500 rupees ($12-$30), representing approximately 5-12% of a typical household income. Eligibility criteria vary by state, often including age thresholds, income caps, and exclusions for government employees, taxpayers, or owners of specific assets like cars or large land plots. The administrative process for these transfers has been streamlined, as 300 million women in India now hold bank accounts. Unlike conditional cash transfer schemes in countries such as Mexico, Brazil, or Indonesia, India's programs provide funds without specific conditions regarding school attendance or poverty line status.### Evolution and Political ContextGoa was the first state to introduce an unconditional cash transfer scheme for women in 2013. The trend gained momentum in 2020 with Assam's scheme for vulnerable women. These transfers have become a significant element in Indian state politics. States like Tamil Nadu and West Bengal explicitly frame these payments as "rights grants" or acknowledgements of women's unpaid contributions. Other states implicitly expect the funds to be used for household and family welfare. In the 2024 elections, pledges related to women-focused cash transfers contributed to political party victories in Maharashtra, Jharkhand, Odisha, Haryana, and Andhra Pradesh. Prior to recent elections in Bihar, 7.5 million female bank accounts received 10,000 rupees ($112) under a livelihood-generation scheme. Women's voting participation exceeded that of men in these elections, influencing the outcome where the Bharatiya Janata Party (BJP)-led coalition secured a victory. Opponents characterized these transfers as a form of vote-buying.### Financial and Social ImplicationsCritics in some policy circles label these schemes as "freebies" or "vote-buying." The 12 states operating these programs are projected to spend approximately $18 billion on payouts in the current fiscal year. Half of these states are currently experiencing revenue deficits. These initiatives reflect a growing recognition of the economic value of unpaid domestic and care work. India's latest Time Use Survey indicates women spend nearly five hours daily on such work, three times more than men. This imbalance contributes to India's low female labor-force participation.### Observed Outcomes and LimitationsEvidence on the schemes' effectiveness is emerging. A 2025 study in Maharashtra found that 30% of eligible women did not register, citing documentation issues or a sense of self-sufficiency. Among those who did register, nearly all maintained control over their bank accounts. A 2023 survey in West Bengal reported 90% of beneficiaries operating their own accounts and 86% deciding how to spend the money, primarily on food, education, and medical costs. The regularity of payments provided security and a sense of agency. Research by Professor Prabha Kotiswaran and colleagues indicates varied outcomes: * In Assam, most women used funds for essentials and valued the dignity provided, but few connected it to recognition of unpaid work, often preferring paid employment. * In Tamil Nadu, recipients reported increased peace of mind, reduced marital conflict, and enhanced confidence. * In Karnataka, beneficiaries reported improved dietary intake, greater involvement in household decisions, and a desire for higher payments. Few, however, interpreted the scheme as compensation for unpaid care work. Across studies, the majority of women retained full control over the disbursed cash. Surveys have not found evidence that these transfers deter women from seeking paid work or reinforce traditional gender roles. They have also not reduced women's unpaid workload. The transfers do strengthen financial autonomy and modestly increase women's bargaining power within households. These programs are viewed as useful, yet limited, tools within existing societal structures.