The Culture Of Freebies In India Political Promises Economic Impact And Social Attitudes

India's relationship with free goods and services extends beyond occasional promotional offers to form a complex cultural, economic, and political phenomenon. The concept of "freebies" in India encompasses government welfare programs, corporate donations, and a widespread societal mindset that values obtaining goods and services without direct payment. This article examines the multifaceted nature of freebies in India, exploring their political manifestations, economic implications, and cultural underpinnings based on available source materials.

Political Freebies and Government Welfare Programs

Political freebies in India have become a significant electoral strategy, with parties offering various benefits to voters. According to the source materials, several prominent examples illustrate this trend:

• Free ration for 80 crore Indians for five additional years
• Free bus rides for all women, regardless of economic status
• Subsidized LPG cylinders costing ₹500 for families above the poverty line
• Ladli Behna benefits for 1.32 crore women in Madhya Pradesh

These initiatives often emerge when the Model Code of Conduct is not in force, limiting the Election Commission's ability to intervene. Prime Minister Narendra Modi has publicly criticized this culture, referring to freebies as "revdi" (a popular Indian sweet), suggesting they are excessive or inappropriate.

The distinction between beneficial welfare programs and problematic freebies has become a subject of debate. NK Singh, chairman of the 15th Finance Commission, emphasizes that freebies are not a substitute for economic growth and may lead to fiscal disaster. However, he also acknowledges that certain merit goods subsidies—such as those in education, health sectors, and the mid-day meal program—serve essential purposes and should not be classified as freebies.

Economic Implications of Freebie Culture

The economic consequences of widespread freebie culture in India present a complex picture. While some argue that freebies help alleviate poverty, others contend they create long-term fiscal challenges.

The actual impact of freebies on the Indian economy appears limited at present, as some promises remain unfulfilled. However, a concerning pattern has emerged: once a free benefit is implemented, political parties become reluctant to withdraw it due to potential voter backlash. This dynamic creates persistent fiscal obligations that can burden government budgets.

Economic data reveals significant challenges related to subsidies: - Non-Plan Expenditure (FY 2014-15): ₹12,19,892 Crores - Subsidies (FY 2014-15): ₹2,51,397 Crores (approximately 21% of Non-Plan Expenditure)

Tax evasion compounds these economic challenges, with estimates suggesting India loses ₹14 lakh crore (1.4 trillion) annually. This lost revenue could substantially contribute to national development if properly collected and allocated.

Corporate Freebies and Strategic Donations

Beyond government programs, corporate entities also engage in freebie distribution as part of their market strategy. Microsoft's approach to the Indian market exemplifies this corporate strategy:

• Providing free .NET software for e-government systems in Karnataka
• Announcing broadband projects for state schools
• Offering "dramatically lower" pricing for "socially relevant projects"

These corporate freebies serve strategic purposes, helping companies build market presence and government relationships. Microsoft's approach demonstrates how businesses use donations to establish goodwill and potentially gain competitive advantages in emerging markets.

Cultural Attitudes Toward Freebies

A distinctive cultural mindset around free goods and services appears prevalent in India, extending across various socioeconomic segments. This cultural orientation manifests in several ways:

• A tendency to "scheme and manipulate how we can get it for free"
• Service industries frequently performing 200% or more work than contractually agreed
• Even affluent individuals requesting discounts on premium services

Notably, this freebie mentality is not limited to those with financial constraints. A striking example involves a renowned Indian painter whose works sold for millions requesting a discount from a top cardiac surgeon for a procedure. This anecdote illustrates how the desire for free or discounted services transcends economic boundaries in Indian society.

Freebies and Poverty Reduction Efforts

India's approach to poverty reduction has increasingly relied on subsidies and freebies rather than strategies focused on increasing income levels. This approach aims to help people spend less on essentials rather than improving their overall economic status.

The effectiveness of this strategy remains questionable. While government schemes have contributed to poverty reduction, they often impose ongoing financial burdens on the state. Furthermore, improvements made through programs that don't include continuous subsidies risk being reversed when funding ends—evidenced by previous initiatives like toilet construction and gas connections that deteriorated after initial implementation.

The Niti Aayog's Multidimensional Poverty Index (MPI) update shows that poverty reduction progress has primarily occurred in areas heavily supported by central and state subsidies. This suggests that while freebies may help people "stay afloat," they may not provide sustainable pathways out of poverty.

COVID-19 and Freebie Expectations

The COVID-19 pandemic has intensified demands for freebies and fiscal packages. Economic restrictions have led to increased expectations of government support, with concerns that this reliance on "government largess" could have long-term consequences:

• Potential adverse impacts on economic growth
• Shrinking output if business restrictions persist
• Risk of pushing millions away from productive work

Critics argue that India needs "strong moral education to work hard" rather than encouraging dependence on government support. Alternative suggestions include redirecting people toward agriculture, farming, or low-investment businesses like vending, which could help maintain income streams without creating dependency.

Distinguishing Between Beneficial Freebies and Problematic Practices

The discourse around Indian freebies requires nuanced consideration of different types of benefits. Some freebies serve essential social functions and merit continued support:

• Education subsidies that improve human capital
• Healthcare initiatives that prevent disease and suffering
• Nutrition programs like the mid-day meal scheme that address basic needs

These merit goods subsidies differ from politically motivated freebies that may prioritize short-term electoral gains over sustainable economic development. The challenge lies in maintaining beneficial programs while addressing those that contribute to fiscal unsustainability without meaningful social returns.

Conclusion

The culture of freebies in India represents a complex intersection of political strategy, economic policy, and social values. While some freebie programs address genuine social needs and contribute to poverty reduction, others create fiscal challenges and potentially unsustainable dependencies. The distinction between beneficial welfare programs and problematic electoral freebies remains crucial for India's economic development.

As India grapples with balancing immediate social needs against long-term economic sustainability, the management of freebie culture will likely continue to be a significant policy challenge. The approach taken will not only impact government finances but also shape the nation's economic trajectory and social fabric for decades to come.

Sources

1. Freebies Frenzy: Indian Politics Grapples with Electoral Promises Amid Economic Concerns
2. Gates' Freebies Build Support for MS in Indian Governments
3. Freebies: Indian Mindset
4. The Nation of Freebies Lovers
5. Indian Freebies Are Working But It's Not Reducing Poverty Only Making People Spend Less