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Subsidy
A subsidy is a payment or price support from the government that lowers the cost of a good or service for consumers or producers. India subsidises food grains, fertiliser, cooking gas and more.
Why It Matters
Subsidies protect the vulnerable, but they cost money that could be spent elsewhere, and can distort how resources are used.
In India
Free food grains for over 80 crore people under the national food security scheme is one of the largest subsidy programmes in the world.