States to spend ₹1 lakh crore on women sops

Mumbai

According to Crisil Ratings, India’s top 18 states are expected to spend ₹1 lakh crore in FY26 on welfare schemes for women, many seen as pre-election promises. This sharp rise is part of a larger ₹2.3 lakh crore social sector spend, which includes direct benefit transfers (DBT) and other welfare expenses.

These 18 states make up over 90% of the country’s Gross State Domestic Product (GSDP). Their social spending has risen to 2% of GSDP, up from 1.4–1.6% in earlier years. Experts say this will raise revenue deficits and limit the ability to invest in infrastructure and development.

Crisil’s Anuj Sethi confirmed that ₹1 lakh crore of the total spending will go to DBT schemes for women. The agency warns this pattern could spread, especially with upcoming elections, making it a key factor to watch.

Meanwhile, revenue spending is growing faster than revenue income. This gap may force states to cut capital investments, which are crucial for long-term growth, said Crisil’s Aditya Jhaver.