Aadhaar direct cash transfer to save 0.5% of the Indian GDP: IMF
In the IMF’s recently published report, “Regional Outlook: Asia and Pacific”, the group notes that the integration of direct cash transfer with Aadhaar will take time, but will ultimately help the Indian government save 0.5 percent of the GDP.
Reported in the New Indian Express, the report specifically says that “if the combination of direct transfer and Aadhaar eliminates the estimated 15 percent leakage cited above for the programmes being integrated, savings could total 0.5 percent of GDP in addition to the gains from the better targeting of spending on the poor.”
The report also notes that by phasing out middlemen and complex bureaucracies, the direct cash transfer scheme will also drive costs down and improve the bottom line.
A recent research report on the Indian biometrics market says it is poised for significant growth, thanks in part to the Aadhaar program and direct cash transfer scheme.
There have been some issues of adoption however, for the UIDAI’s Aadhaar cash transfer system, as several bank in India have come out against a platform created by the UIDAI which would see Aadhaar numbers used to authentication ID before every transaction regarding bank accounts receiving welfare benefits.
As we reported last month, 15% of consumers have already provided their Aadhaar details to banks.
Reported previously in BiometricUpdate.com, Aadhaar enrolment has now reached 286.66 million, representing a significant jump, owed widely to the launch of the UIDAI’s direct transfer scheme launched early this year.
This increase is good news to stakeholders in the Aadhaar program, as in May 2012, enrollment stood at only 4.76 million, significantly less than January for example, in which enrolment stood at 24.79 million.
Based on the country’s 2012-2013 Economic Survey, the second phase of the Aadhaar project aims to enroll 400 million residents by 2014.