India, Feb. 14 -- The political class seems to have arrived at a consensus on so-called freebies. The Bharatiya Janata Party (BJP) was critical of their proliferation until recently. Prime Minister Narendra Modi used to refer to them pejoratively as the "rewdi" culture. Not anymore. Beginning from the 2023 Madhya Pradesh elections, the BJP has realised that freebies generate traction in elections and might have become the necessary if not sufficient ingredient of a successful election campaign strategy.

The political consensus notwithstanding, do freebies serve a useful economic purpose? Many commentators, including this columnist, have argued that freebies are essentially a drain on other essential and long-term growth/welfare enhancing...