There have been speculations that the BJP government might lay the foundations of Universal Basic income in India. This was one of the major themes of the Economic Survey 2016-17. Universal Basic Income Scheme can be a viable alternative to the plethora of state subsidies intended for poverty alleviation, as noted in the Economic Survey 2016-17. The idea of everyone getting a basic income every month in their bank account sounds all kittens and rainbows but it comes with a cost. The cost is ending all the existing welfare schemes like MNREGA and Mid-day Meal schemes. Also, there won’t be any in kind transfers of food and no subsidies on fertilisers or electricity. The fiscal deficit of the country might also increase. Like all economic policies, a basic income also has its pros and cons. This paper analyses the need of a Universal Basic Income in India and the costs involved in implementation of the same. We have tried to explain the concept of universal income, its relevance in the Indian context, and some of the challenges pertaining to its application as a viable policy.