Direct Benefit Transfer (DBT) in India: A Strategic Assessment of Technology-Driven Welfare Delivery

Background: The Direct Benefit Transfer (DBT) initiative in India has emerged as a pivotal reform in public welfare management by leveraging digital infrastructure to enhance the efficacy, transparency, and accountability of subsidies and benefit distribution.

Purpose: The purpose of this study is to evaluate the efficacy of DBT in improving welfare delivery, examine its evolution, enablers, and challenges, and propose strategic recommendations for its optimization.

Methods: A comprehensive literature review utilizing peer-reviewed articles and policy reports on direct benefit transfer (DBT) in India is conducted. The key findings are systematically synthesized, and public value theory is applied to evaluate DBT’s impact on public service delivery. Subsequently, a SWOT analysis is employed to examine the program’s strengths, weaknesses, opportunities, and threats, providing managerial insights for enhancing public welfare through DBT in India.

Results: DBT has significantly enhanced transparency, reduced fraudulent activities, and promoted financial inclusion through the JAM trinity. However, exclusion errors, limited rural banking infrastructure, and digital literacy barriers hinder its broader impact. Strategic opportunities exist in the implementation of emerging technologies and public-private collaborations to expand DBT’s reach and efficacy.

Conclusion: DBT exerts a substantial influence on the transformation of public welfare in India through the promotion of social equity and economic empowerment. The results suggest policy actions to optimize the program’s effectiveness, including improving the process of identifying beneficiaries, broadening initiatives to enhance digital literacy, and utilizing cutting-edge technologies such as artificial intelligence and blockchain to achieve superior welfare outcomes.