DMPQ: Subsidies are always been a major tool for the inclusivity. Comment on its efficacy. (Economy)

In India there is large inequality in terms of wealth. To set off this bridge Govt resorts to  subsidies for resource redistribution and to achieve social welfare of the masses. Over the periods of time different political class have used subsidies to garner votes. There are various advantages of subsidies:

 

  • Empowerment and security to the weak
  • It help to reduce socio-economic inequalities
  • Cascading impact on development indicators- it hasten the development in term of human development
  • It will help to achieve food and nutritional security.
  • Will help to boost economic activity.
  • Capital asset creation will take place.