Does India Want to Invest in Its Daughters: A Critical Analysis of Sukanya Samriddhi Yojana

Abstract

This study has been conducted to understand the Sukanya Samriddhi Yojana (SSY) scheme launched by the Government of India (GOI) for the girl child, to take care of their education and marriage. A composite index for measuring the performance of Indian states on SSY scheme investment was developed. It attempts to identify socioeconomic and psychological factors determining the SSY investment. A mixed method approach has been used to conduct the study. Normalized inverse Euclidean distance is applied for computing the composite index. We found that there exist significant regional differences between means of composite index of SSY in India. Male literacy, labor force participation, and women’s empowerment are significant positive predictors of composite index of SSY. The various motivating factors driving SSY investment are wealth creation for future of girl child, risk-free guaranteed return, and tax benefits. Based on the qualitative in-depth interviews, we found that the respondents expect a higher rate of interest on their SSY investment. They felt that the maximum limit for the investment should be removed, and there should be provision for premature withdrawal for urgent needs of girl child. Some felt that there should be equitable contribution in the scheme from the side of the government.