I am glad that the Government of India has embarked on its journey to use Behavioural Economics. Countries like US and UK already have departments within the Government for Behavioral Change. India has taken its first steps to acknowledge the role of Behavioural Economics to shape and influence policy decisions, implementation and successful execution. The Swachh Bharat Mission, ‘Give it up’ for LPG subsidy, ‘Beti Aapki Dhan Lakshmi Aur Vijay Lakshmi’ are programs that have the potential for huge social impact.
A key principle of Behavioural Economics is that while people’s behaviour is influenced significantly by social norms, understanding the drivers of these social norms can enable change. In India where religious and social norms play such a dominant role in influencing behaviour, Behavioural Economics can therefore provide a valuable instrument of change. Beneficial social norms can be furthered by drawing attention to positive influencers, especially friends, neighbours that represent role models with which people can identify.Leveraging Behavioural Economics by the Govt. of India