The Universal Basic Income (UBI) is a recurring payment made to all people without any restrictions.[1]. By evaluating Indian legislation and examining trials in other countries, including Finland and Kenya, this article assesses the feasibility of implementing a universal basic income (UBI) in India. To ascertain where UBI stands, we examine important Supreme Court decisions, most notably Article 21[2], which addresses the right to life, important welfare acts, and economic reports. India’s goal of promoting social welfare and human dignity is in line with UBI.
GLOBAL EXPERIMENTS: FINLAND AND KENYA
Some governments have experimented with UBI. During Finland’s two-year experiment (2017–18), 2,000 unemployed individuals received €560 a month.
People were reported to feel “happier when given free money,” but they did not become employed more frequently. The official report stated that the basic income “had no significant impact on employment,” but recipients said they felt more satisfied with their lives. What this implies is that Finland’s experiment indicated that the provision of cash without strings attached can improve people’s well-being even if it doesn’t create more jobs.[3]
Kenya boasts one of the biggest basic income experiments. It gives each adult in some villages about $50 per month.
Early findings indicate that individuals are doing well. All the villagers to whom cash (short-term or long-term) was provided consumed more food and spent more on schooling than those to whom nothing was provided. The recipients of their two-year grant in lump sums had 19% more small businesses and earned 80% more profits compared to those who were receiving monthly payments. Those with long-term monthly schemes also performed well by saving their payments in community savings groups. These findings indicate that UBI boosts the welfare and entrepreneurship of poor communities[4].
Together, Finland and Kenya send a clear message: providing the poor with unconditional cash increases living standards and dignity, with no legal issues in those pilots. None of these pilots broke local law; they simply provided families with more control and security. With this evidence in hand, we shift our focus to India: how would UBI work with our laws and constitution?
ARTICLE 21 AND THE RIGHT TO DIGNITY
India’s Constitution does not secure an income per se, but the Supreme Court’s readings of the right to life have been founded on human dignity and sustenance. As in Francis Coralie Mullin v. Union of India (1981)[5] the Court held that “the right to life includes the right to live with human dignity,” and this implies giving “all bare necessities of life, namely adequate food, clothing and shelter.” Similarly, in Olga Tellis v. Bombay Municipal Corp. (1985)[6] it was held that “livelihood is an important part of the right to life… taking away someone’s livelihood is like taking away their life’s meaning.” In PUCL v. UOI (2007)[7] the Court reiterated that the “right to food is necessary for fulfilling the right to life with human dignity,” and this implies that the state has a responsibility to introduce food schemes for everyone[8].
These are not a constitutional right to basic income, but they do show that absolute poverty is contrary to Article 21. Granting a modest UBI would further contribute to the dignity that Article 21 protects by enabling citizens to fulfil their basic needs.[9] UBI is a simple way for the state to ensure a minimum income, which will preserve the values and standards our courts have set.
DIRECTIVE PRINCIPLES AND WELFARE GOALS
India’s Directive Principles make a strong case for UBI. Article 39(a) tells the state to make sure people have enough to live on[10], while Article 41 talks about support for those who are unemployed, elderly, sick, or disabled[11]. While you can’t enforce these articles on their own, they show that the Constitution aims for a welfare state. A universal cash grant would help achieve these goals. There’s nothing in the Constitution that stops unconditional payments, and we already have several cash transfer programs in place, like subsidies and pensions. UBI can be thought of as a natural step forward in line with what our Constitution supports for welfare[12].
EXISTING SOCIAL SECURITY VS UBI
- MGNREGA (2005): This guarantees up to 100 days of wage labour for rural households each year[13].
- National Food Security Act (2013)[14]This helps provide subsidised food through the Public Distribution System to eligible families.
- Social Pensions: Monthly support for seniors, widows, and disabled individuals as part of the National Social Assistance Programme.
- Maternity and child Benefits: This includes payments for maternity (Janani Suraksha) and mid-day meals for kids at school.
Even with all these efforts, there are still major problems with waste and inefficiency. Despite spending between 3 and 4% of its GDP on various welfare programs and subsidies in 2016–17, millions of Indians remain impoverished. Some believe that things could be easier if they only used one cash transfer system. It may be simpler to assist those who truly need it if a direct Universal Basic Income (UBI) is implemented in place of several targeted programs.[15].
- Welfare vs. UBI: Some people are concerned that universal basic income (UBI) might benefit wealthy folks too, but supporters argue that we can adjust tax policies to address that. One big advantage of UBI is that it cuts out the expensive process of means-testing. Economists have come up with different ideas: Pranab Bardhan suggested giving ₹10,000 per person per year (about $150), which would cost around 10% of the GDP. On the other hand, Vijay Joshi proposed ₹3,500 a year ($50) at roughly 3.5%. The Economic Survey from 2017 found a middle ground with ₹7,620 a year for the bottom 75% of earners, which would cost about 4.9% of the GDP[16].
Any UBI would probably be funded by changing spending priorities and taxes, and nothing is stopping India from doing this. The public good can be supported by taxes and spending by the Parliament, and India has a history of reducing subsidies and adjusting taxes as needed. Therefore, it is entirely legal to finance universal basic income (UBI) by reducing other welfare spending or by enacting new taxes.[17].
LEGAL FEASIBILITY IN INDIA
A law that gives everyone the same basic income would follow Article 14 because it treats people in similar situations the same.[18]. It wouldn’t take away anyone’s freedom; people can still look for jobs if they want. UBI supports Article 21’s idea of living with dignity.[19]. The current laws don’t recognise a strong “right to property” (only a simple procedure under Article 300A)[20], and the Constitution allows the government to impose taxes for the sake of welfare. In practice, UBI would need to be passed by law, just like other welfare programs, and it would meet the typical legal standards easily.[21]
When it comes to court decisions, there hasn’t been a fundamental “right to income” established. So, a basic income guarantee would also need to come from legislation and not just from court rulings. That said, courts have often pointed out the government’s responsibility to help fight poverty and hunger. A well-thought-out UBI law aimed at covering basic needs would likely be seen as meeting the government’s duties under Article 21 rather than violating any rights[22].
IMPLEMENTATION CAPACITY
India is in a good spot to roll out Universal Basic Income (UBI). With almost everyone having Aadhaar cards, many people having bank accounts under PMJDY, and a lot of folks using mobile phones, we already have what we need for direct cash transfers. Some welfare programs are already using Aadhaar-linked accounts. There’s no legal roadblock to UBI; it just needs some plans and budget, just like any other welfare program. Both the central and state governments know how to get these things done. Plus, UBI fits well with our constitutional values, focusing on dignity and the importance of helping those in need, making it a solid option.[23]
CONCLUSION
India’s Constitution is a big stack of justice, equality, dignity, all that good stuff—screams for policies that don’t let people go hungry. Seriously, denying someone enough to eat pretty much stomps all over their right to live. Even the courts have pointed this out.
Handing out some straightforward cash? Other countries have tried it (Finland and Kenya)- and guess what? It helps. People get a bit of money, and hey, suddenly life’s a little less terrible. They don’t lose their chill or start burning stuff down, either.
It doesn’t clash with constitutional rights, and the whole “let’s test it in poorer areas first” thing makes a ton of sense—no need to dive in headfirst and hope you don’t smack the bottom.
Honestly, done right, a basic income could work alongside other schemes: take a chunk out of poverty, keep people from falling through the cracks, maybe even help the country live up to that shiny promise in the Constitution.
Author(s) Name: Bandi Jathin Sri V Sai Vignesh (Damodaram Sanjivayya National Law University)
References:
[1] Peters K, ‘What Is Universal Basic Income (UBI), and How Does It Work?’ (Investopedia) <https://www.investopedia.com/terms/b/basic-income.as p> accessed 27 May 2025
[2] Constitution of India. Art- 21
[3] ‘Finland’s Basic-Income Trial Found People Were Happier, but Weren’t More Likely to Get Jobs’ (World Economic Forum) <https://www.weforum.org/stories/2020/05/finlands-basic-income-trial-found-people-were-happier-but-werent-more-likely-to-get-jobs/#:~:text=The%20final%20results%20were%20published,likely%20to%20land%20a%20job > accessed 26 May 2025
[4] Alaska Public Media | By Nurith Aizenman – NPR, ‘Key Findings Released in Kenya Universal Basic Income Experiment’ (Alaska Public Media, 15 December 2024) <https://alaskapublic.org/news/2023-12-07/key-findings-released-in-kenya-universal-basic-income-experimen t> accessed 26 May 2025
[5] 1981 AIR 746
[6] 1986 AIR 180
[7] AIRONLINE 2007 SC 71
[8] Shrikrishna Upadhyaya and Sukriti, ‘A CASE FOR UNIVERSAL BASIC INCOME IN INDIA’ (Nujslawreview) <http://nujslawreview.org/wp-content/uploads/2018/05/11-%E2%80%93-2-%E2%80%93-Shrikrishna-Upadhyaya-Sukriti.pd f> accessed 26 May 2025
[9] Constitution of India, art 21.
[10] Constitution of India, art 39(a)
[11] Constitution of India, art 41
[12] ((PDF) Universal basic income (UBI) for reducing inequalities and increasing socio-economic inclusion: A proposal for a new sustained policy perspective) <https://www.researchgate.net/publication/348891455_Universal_Basic_Income_UBI_for_Reducing_Inequalities_and_Increasing_Socio-Economic_Inclusion_A_Proposal_for_a_New_Sustained_Policy_Perspective > accessed 26 May 2025
[13] MGNREGA (2005)
[14] National Food Security Act (2013)
[15] Maitreesh Ghatak Professor of Economics, ‘Is India Ready for a Universal Basic Income Scheme?’ (International Growth Centre, 29 September 2016) <https://www.theigc.org/blogs/india-ready-universal-basic-income-scheme > accessed 26 May 2025
[16] Kundu T, ‘Is It Time for a Universal Basic Income in India?’ (mint, 27 August 2016) <https://www.livemint.com/Sundayapp/ACG8sl4BvWzWBCH3orUMjO/Is-it-time-for-a-universal-basic-income-in-India.html> accessed 27 May 2025
[17] ‘Universal Basic Income: Is India Ready for Scheme like Ubi: UPSC Editorials’ (Testbook) <https://testbook.com/editorials/universal-basic-income-india-ready-for-ubi-scheme#:~:text=Conclusion,implemented%20in%20the%20right%20way.> accessed 26 May 2025
[18] Constitution of India, art 14.
[19] Constitution of India, art 21.
[20] Constitution of India, art 300A.
[21] Shrikrishna Upadhyaya and Sukriti, ‘A CASE FOR UNIVERSAL BASIC INCOME IN INDIA’ (Nujslawreview) <http://nujslawreview.org/wp-content/uploads/2018/05/11-%E2%80%93-2-%E2%80%93-Shrikrishna-Upadhyaya-Sukriti.pdf> accessed 26 May 2025
[22] Constitution of India, art 21.
[23] Saksham khosla, ‘India’s Universal Basic Income: Bedeviled by the Details’ (CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE, 14 February 2018) <https://carnegieendowment.org/research/2018/02/indias-universal-basic-income-bedeviled-by-the-details > accessed 26 May 2025
