There is a mixed opinion about the Gruha Lakshmi scheme, which transfers ₹2,000 each month to every woman head of the household in Karnataka. Some opine that it is an essential welfare scheme, while some others think that it is a burden on the economy.

The scheme is partially influenced by Universal Basic Income (UBI), which propagates the transfer of cash periodically to all citizens irrespective of their economic status. UBI provides social security and helps in reducing inequality and poverty.

According to the Oxfam report, in India, the richest 1% hold more than 40% of total wealth, and the bottom half of the population shares 3% of wealth.

India is the fifth largest economy in the world based on nominal GDP. However, India ranks 139 among 192 countries based on per capita GDP.

If the GDP growth is getting concentrated in a small section of the population, the economic progress doesn’t make much sense to the large majority.

When the GDP growth trickles down to every person through job opportunities, business growth, and welfare schemes, the country achieves peace, stability, and progress.

The scheme targets women beneficiaries, which can help in the financial empowerment of women, judicious spending of money, and circulation of money in the economy that can have ripple effects on economic growth.