India weighs up the return on cash handouts for the poorest

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There have already been Indian trials. Three years ago, in nine villages in Madhya Pradesh state, 6,000 people were each given a monthly payment of up to 300 rupees an adult, and half that much for every child, over a period of 18 months.

Every six months, the impact of the payments was assessed against 12 villages that received no income, just the usual government welfare. "What we saw were huge improvements in nutrition, health, schooling and sanitation," said Guy Standing, a British economist who helped run the trials.

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Subramanian calculates that the annual income required to enable all but the very poorest Indians to escape penury is about 7,620 rupees (£90) a year. If that sum were given to 75% of India's billion-plus population, it would cost about 5% of GDP.

India's vast welfare schemes and subsidies for food, petrol and fertilisers are notoriously wasteful and poorly targeted. Cutting them entirely would save about 2% of GDP. Reducing "middle class" subsidies on things such as railway tickets and gold would save another 1%. The rest of the savings might be found in scrapping other government schemes, which altogether cost 3.7% of GDP.