In a 12-page open letter to Prime Minister Narendra Modi, Bernstein, a global equity research and brokerage firm, expressed concerns over India's increasing reliance on welfare schemes, particularly cash transfers that are politically timed. The firm noted that these schemes, which amount to approximately ₹2.5 lakh crore (around $30 billion USD) annually, are diverting funds from critical areas such as infrastructure, education, and healthcare. For instance, schemes like Madhya Pradesh's Ladli Behna, which promises ₹1,500 monthly to about 13 million women, and similar initiatives in Maharashtra and Bihar, are reshaping fiscal priorities without necessarily boosting economic growth. Bernstein emphasized that while well-designed cash transfers can support vulnerable populations, excessive, unconditional transfers tied to elections could lock India into a low-productivity economic model, ultimately stunting per capita income growth despite seemingly robust GDP figures. The firm advocates for a balanced approach that prioritizes investment in long-term capabilities over short-term consumption.