India's cash transfers give women financial autonomy and political influence

India's unconditional cash transfers (UCTs) to adult women across 12 states represent one of the world's largest social-policy experiments, with payments ranging from 1,000 to 2,500 rupees ($12–30) per month, roughly 5–12% of household income. The schemes aim, explicitly or implicitly, to recognize women's unpaid domestic and care work.

Economically, the transfers provide predictable income and financial autonomy. Beneficiaries primarily spend the money on household essentials, children's education, medical expenses, and small debts, says the BBC.

Studies show women maintain control over the funds and continue to seek paid work, though their unpaid workload remains largely unchanged. The programs also place significant fiscal pressure on states, with 12 expected to spend about $18 billion this year.

Politically, UCTs have become influential. Cash transfer pledges helped secure victories in states including Maharashtra, Jharkhand, Odisha, Haryana, and Andhra Pradesh. In Bihar, a large pre-poll transfer to women's accounts reportedly influenced voter turnout, prompting criticism that such measures constitute "blatant vote-buying."

Socially, the transfers enhance women's dignity, decision-making power, and sense of control. Surveys indicate most beneficiaries manage their own accounts and decide how to spend the money.

While the programs modestly strengthen women's bargaining power, researchers note they cannot fully address structural inequities and that only a fraction of women understand the payments as compensation for unpaid care work.

Experts suggest that coupling cash transfers with messaging emphasizing women's rights and the value of unpaid work could amplify their impact on household dynamics and the gendered division of labor.