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 Behavioral Economics to shape and influence policy decisions, implementation and successful execution. \u00a0The Swachh Bharat Mission, \u2018Give it up\u2019 for LPG subsidy, \u2018Beti Aapki Dhan Lakshmi Aur Vijay Lakshmi\u2019 are programs that have the potential for huge social impact.<\/p>\r\n
A key principle of Behavioral Economics<\/strong> is that while people\u2019s 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, Behavioral Economics<\/strong> can therefore provide a valuable instrument of change. Beneficial social norms can be furthered by drawing attention to positive influencers, especially friends and neighbours who represent role models with which people can identify.<\/p>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n