16% Indian Women receive Income Support through Government Schemes: Report

By: WE Staff | Friday, 12 July 2024

India's state governments are increasingly targeting women for welfare measures, particularly income transfer schemes, following the pandemic. Axis Bank's economic research team found that 10 states now provide income support to women, with Maharashtra being the latest. It states that 16 per cent of Indian women now receive income support. This shift reflects a growing recognition of the importance of economic empowerment for women, aiming to enhance their financial independence and overall well-being. These initiatives aim to address gender inequality and provide women with the necessary resources for socio-economic development.

Income transfers to women in India now amount to Rs 1.8 lakh crore a year, accounting for 0.8 per cent of the combined GSDP and 0.6 per cent of India's GDP. This is part of a larger trend where large states donate significant revenue to welfare schemes. Maharashtra state government presents the FY25 supplementary budget, including the Chief Minister's Ladki Bahin Scheme, aiming to transfer Rs 1,500/month to 26 million women. Maharashtra is the 10th state to announce such schemes.

The frequency of women-focused income transfer schemes has increased, with more announcements in the last two years than in 2020-22. Maharashtra's scheme followed Delhi's Mukhyamantri Mahila Samman Yojana in March 2024, and Himachal Pradesh's Indira Gandhi Pyari Behna Sukh Samman Nidhi Yojana in February 2024. Four other governments announced similar schemes in 2023. Axis report further mentions that states like West Bengal, Madhya Pradesh, and Maharashtra launched schemes before polls, while Telangana and Karnataka started after a new government.

The report said that FY25 spending on welfare schemes will reach 0.5 per cent of GDP, but for states running these schemes, it amounts to 0.8 per cent to 19 per cent of total expenditure and 0.2 per cent to 3.2 per cent of GSDP. Budgeted deficits are above FY23 actuals, but actual deficits are generally below budgeted numbers.

Andhra Pradesh announced the Jagananna Ammavodi Scheme offering Rs 1,500 per month. Assam announced the Orunodoi Scheme offering Rs 1,250 per month. West Bengal announced the Lakshmi Bhandar Scheme offering Rs 1,000/1,200. Madhya Pradesh announced Chief Minister Ladli Behna Yojana is offering Rs 1,000. Karnataka announced Gruha Lakshmi offering Rs 2,000. Tamil Nadu announced Kalaignar Magalir Urimai Thittam offering Rs 1,000. Telangana announced the Mahalakshmi Scheme offering Rs 2,500. Himachal Pradesh announced the Indira Gandhi Pyari Behna Sukh Samman Nidhi Yojana offering Rs 1,500. NCT of Delhi announced the Mukhyamantri Mahila Samman Yojana offering Rs 1,000, and Maharashtra announced the Mukhya Mantri Majhi Ladki Bahin Yojana offering Rs 1,500.