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This study tracks trends and changes to India's subsidies and transfers, examines their composition and fiscal impact, and suggests how improving efficiency and targeting could help subsidies reach those who need them most.
It explains how subsidies from central and state governments, including for food, fertilizer, and electricity, climbed in the wake of the COVID-19 pandemic. It suggests policymakers consider using targeted schemes, rationalizing subsidies, and developing an integrated social security system for informal workers.