Cash transfer programmes targeted at women have become one of the fastest-growing
categories of state-level welfare spending in India. By FY26, more than fifteen states had
introduced some form of unconditional monthly or annual transfer paid directly into women’s
bank accounts, at an estimated aggregate cost of roughly Rs 1.7 lakh crore and reaching close
to 12 crore women. The number of states running such schemes increased more than five-fold
between FY23 and FY26 reflect a convergence of evidence from development economics and
political economy; direct income support placed in women’s hands is a powerful and cost
effective instrument for improving household welfare, advancing financial inclusion and
reducing gender-based economic exclusion.
