Indian state to implement universal basic income by 2022

The Indian state of Sikkim plans to guarantee every one of its residents a basic salary under a scheme that its proponents say will dramatically raise living standards in the Himalayan region.

The Sikkim Democratic Front-led government in the northeastern state declared its intention to implement a Universal Basic Income (UBI) programme in its manifesto ahead of regional elections in 2019 and aims to implement it by 2022.

If the proposal goes according to plan, the small state of some 611,000 will be the first to implement UBI in India. It will also represent the world's  largest ever experiment with the economic concept, which has high-profile champions including Richard Branson, Facebook boss Mark Zuckerberg and Tesla CEO Elon Musk.

Beloved of socialist idealists and derided by arch-capitalists, Universal Basic Income (UBI) is a system for providing all citizens of with a given sum of money, regardless of their income, resources or employment status.

The most common argument in favour of Sikkim’s proposed UBI is that it would foster social justice and redress any historical privilege, as it is supposed to displace all other welfare schemes and subsidies. Wastage from inefficient government projects targeting the poor would also cease.

Critics of the scheme argue that the initiative will money to those who do not need it, and that it may reduce the incentive to work or search for jobs.

The 2017 Indian Economic Survey flagged such a UBI scheme as “a conceptually appealing idea” and a possible alternative to social welfare programmes targeted at reducing poverty.

The SDF government says it has already considered the financial mechanics of the scheme. The successful implementation of several hydropower projects by the state has yielded a power surplus which it sells elsewhere in India.

Plus, it is one of the most visited by tourists and receives substantial revenues from them.

Sikkim, with its modest population, is one of India’s better states in terms of living standards  according to official data.

It has a poverty level of 8 to 9 per cent, much lower than the national average, and the third highest gross income per capita of all Indian states,  meaning it has healthier public resources on which to draw.

Sikkim is also one of the safest and most progressive states for women, with a higher than average presence in the workplace, at around 29 per cent, and less crime against females.

The state’s literacy rate is among the country's highest, at 82.2 per cent, up from 68.8 per cent in 2001, according to government statistics.