Karnataka govt's guarantee schemes ease financial burden, empower women: Study
Bengaluru: A year-long independent study has found that the Karnataka government’s five guarantee schemes have significantly empowered women, particularly from low-income households, by easing financial stress and improving household well-being.
The survey, led by independent policy consultant Tara Krishnaswamy in collaboration with Lokniti-CSDS, Bangalore University, Tumkur University, and Indus Action, covered approximately 6,300 women across 15 districts in Karnataka. According to the study, as cited by The Hindu, 84% of respondents reported that the schemes reduced their families’ financial burden, while 89% felt that the guarantees contributed to their financial upliftment.
Improved nutrition, health, and independence
The study highlights how beneficiaries are utilising the monetary benefits and savings from the schemes. Around 91% of respondents said they used the funds to purchase food and dietary essentials such as grains, vegetables, fruits, pulses, eggs, and meat.
Nearly 95% of the women stated that their families ingested better nutrition and improved diets due to the benefits, while 90% reported increased access to healthcare.
Additionally, over 80% of women noted improvements in their personal health, nutrition, and financial security. More than 50% of respondents also indicated they had resumed or continued their education due to the support received.
Economic and social empowerment
According to the study, the direct benefit of Rs 2,000 per month through the Gruha Lakshmi scheme played a key role, while additional savings came from Gruha Jyoti, which helped over 90% of women save up to Rs 1,000 per month on electricity bills. The Shakti scheme enabled up to Rs 1,000 in weekly savings. Notably, 27% of respondents reported using savings from the five guarantees to repay loans.
The Shakti scheme also contributed to greater mobility and independence, with 67% of women travelling independently for work or leisure. About 19% were able to secure new or better-paying jobs due to free transportation.
Other guarantees also made an impact: Anna Bhagya improved household diets, Gruha Jyoti reduced electricity costs for 82% of families, and Yuva Nidhi supported skill development among unemployed youth, though the latter had a limited reach, benefiting just 7% of respondents.
“These schemes are a social safety net. The money is not sitting idle somewhere. Whether it is money received through Gruha Lakshmi or any savings that they have because of these schemes, it is all being spent mainly on food, nutrition and health,” The Hindu quoted Krishnaswamy as saying.
Challenges and recommendations
Despite the positive outcomes, the study also identified several challenges, including delays in benefit distribution, administrative hurdles, and technological barriers. It noted that many women beneficiaries have only basic education (up to the 10th standard or less) and often struggle with mobile apps, portals, ATMs, or even reading electricity bills.
The study recommends boosting financial and digital literacy through local panchayats to help bridge these gaps.
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India proposes preferential trade agreement with Mexico to deal with high tariffs
New Delhi (PTI): India has proposed a preferential trade agreement (PTA) with Mexico to help domestic exporters deal with the steep tariffs announced by the South American country, a top government official said on Monday.
Mexico has decided to impose steep import tariffs - ranging from about 5 per cent to as high as 50 per cent on a wide range of goods (about 1,463 tariff lines) from countries that do not have free trade agreements with Mexico, including India, China, South Korea, Thailand and Indonesia.
Commerce Secretary Rajesh Agrawal said that India has engaged with the country on the issue.
"Technical level talks are on...The only fast way forward is to try to get a preferential trade agreement (PTA) because an FTA (free trade agreement) will take a lot of time. So we are trying to see what can be a good way forward," he told reporters here.
While in an FTA two trading partners either significantly reduce or eliminate import duties on maximum number of goods traded between them, in a PTA, duties are cut or removed on a limited number of products.
Trading partners of Mexico cannot file a compliant against the decision on imposing high tariffs as they are WTO (World Trade Organisation) compatible.
The duties are within their bound rates, he said, adding that their primary target was not India.
"We have proposed a PTA because its a WTO-compatible way forward... we can do a PTA and try to get concessions that are required for Indian supply chains and similarly offer them concessions where they have export interests in India," Agrawal said.
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Citing support for local production and correction of trade imbalances, Mexico has approved an increase in MFN (most favoured nation) import tariffs (5-50 per cent) with effect from January 1, 2026 on 1,455 tariff lines (or product categories) within the WTO framework, targeting non-FTA partners.
Preliminary estimates suggest that this affects India's around USD 2 billion exports to Mexico particularly -- automobile, two-wheelers, auto parts, textiles, iron and steel, plastics, leather and footwear.
The measure is also aimed at curbing Chinese imports.
India-Mexico merchandise trade totalled USD 8.74 billion in 2024, with exports USD 5.73 billion, imports USD 3.01 billion, and a trade surplus of USD 2.72 billion.
The government has been continuously and comprehensively assessing Mexico's tariff revisions since the issue emerged, engaging stakeholders, safeguarding the interests of Indian exporters, and pursuing constructive dialogue to ensure a stable trade environment benefiting businesses and consumers in both countries.
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Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai has said that Mexico's decision is a matter of concern, particularly for sectors like automobiles and auto components, machinery, electrical and electronics, organic chemicals, pharmaceuticals, textiles, and plastics.
"Such steep duties will erode our competitiveness and risk, disrupting supply chains that have taken years to develop," Sahai said, adding that this development also underlines the little urgency for India and Mexico to fast-track a comprehensive trade agreement.
Domestic auto component manufacturers will face enhanced cost pressures with Mexico hiking duties on Indian imports, according to industry body ACMA.
