Effects of Cash Transfers with Reference to India

Abstract

This review evaluates the effectiveness of cash transfers in India by analysing studies conducted between 2009 and 2025. Using PRISMA guidelines, 43 studies were reviewed, of which 18 focused on understanding the concept of cash transfers, while 25 examined cash transfers in the Indian context. The findings revealed that cash transfers play a significant role in reducing poverty, improving educational outcomes, and enhancing women’s social and economic well-being. Evidence from various states suggests that cash transfers positively influence household expenditure patterns, the gendered division of labor, women’s empowerment, and savings behavior. However, cash transfer programs also challenge the fiscal health of states. In India, both conditional and unconditional cash transfers exist, although the former are more prevalent than conditional ones. The policy recommendations emphasize that cash transfer programmes should be designed in accordance with the fiscal capacity of states and aligned with intended developmental outcomes. Future research should examine the long-term effects of cash transfer programs, compare the effectiveness of conditional and unconditional transfers, and assess their impact on state budgets and other public expenditures.