Sources have reported that much before US economist Richard Thaler won Nobel Prize for economics; the Narendra Modi government had put his famous theory in practice by dedicating a separate unit to it. Thaler popularized the idea of 'nudge economics', which emphasizes subtly guiding humans toward beneficial behaviors without forcing them to comply. Thaler's theory was one valuable addition to the field of behavioral economics.
Previously the government's think tank NITI Aayog tied up with the Bill & Melinda Gates Foundation to set up a 'nudge unit' that would work towards bringing about behavioral changes and recommending policy corrections to help make the programs more effective. Furthermore the unit had aimed at sensitizing people at the grassroots towards the government's flagship programs such as Swachh Bharat, Jan Dhan Yojana, Digital India and Skill Development through social messaging and new ad campaigns.
Earlier India had taken a leaf out of Britain's book. Officially known as
the Behavioral Insights Team, the unit was first set up in the UK in 2010 in
the Prime Minister's Office to apply nudge theory to try to improve government
policy and services while minimizing expenditure.
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