Opinion: The Case for Universal Basic Income in the Age of AI

The conversation about Universal Basic Income (UBI) is no longer theoretical. As AI systems become capable of performing tasks that employ hundreds of millions of people worldwide, governments must confront an uncomfortable question: what happens when large portions of the workforce become economically redundant?

India's experience with direct benefit transfers through the Jan Dhan-Aadhaar-Mobile (JAM) trinity provides a ready-made infrastructure for UBI implementation. The technology exists. The delivery mechanisms are proven. What is lacking is political will and fiscal imagination.

Critics argue that UBI is fiscally irresponsible. But consider the alternative: a growing population of unemployable citizens with no safety net, no purchasing power, and no economic dignity. The social costs of inaction will far exceed the fiscal costs of a targeted basic income program.

A pilot UBI program covering the bottom 20% of households, set at Rs 3,000 per month per adult, would cost approximately 1.5% of GDP. This is ambitious but feasible, especially if accompanied by rationalization of existing subsidy programs that are far less efficient in delivering welfare.