Nudging India – Using Behavioural Economics in Public Policy

Economic Survey 2019 has brought in the Behavioural Economic Theory that provides insights to “nudge” the people to make economically and socially desirable choices. This is in contrast to the stringent economic and political policies to change the social behaviour of the people.

What is Behavioural Economics?

• The Behavioural Economics is the field wherein the psychological, social, emotional and cultural aspects are taken into account while understanding the economic behaviour of the individual and analysing the deviations of these choices from those that based on rational classical economics.
• The study of Behavioural economics seeks to understand how market decisions are made and what aspe