Perceived Effectiveness of PM-KISAN Scheme as a Direct Benefit Transfer (DBT) Initiative in Enhancing Livelihood Resilience of Farmers in Uttar Pradesh, India: A Factor Analytical Approach

Abstract

Aim: The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme is a flagship Direct Benefit Transfer (DBT) initiative aimed at providing income support to farmer households across India. This study evaluates the perceived effectiveness of the scheme in enhancing livelihood resilience among beneficiaries in Uttar Pradesh, the state with the highest number of recipients. Study Design: Ex-Post Facto Research Design. Place and Duration of Study: The research was conducted in Machhlisahar block of Jaunpur district and Jahanaganj block of Azamgarh district of Uttar Pradesh between February 2025 to July 2025. Methodology: 141 beneficiaries selected through proportionate random sampling. Data were collected using a structured interview schedule and analyzed through descriptive statistics and exploratory factor analysis. Results: The Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy (0.705) and Bartlett’s Test of Sphericity (p < 0.001) confirmed the suitability of factor analysis. three latent factors with eigenvalues greater than one were extracted using Principal Component Analysis with Varimax rotation, collectively explaining 90% of total variance. These factors were identified as: Extension and Innovation Orientation, Economic and Resource Factor and Cognitive or Attitudinal Response. The results indicate that perceived effectiveness is shaped by both financial and non-financial dimensions with strong linkages to farmers information access, risk-taking behavior and willingness to adopt innovations. Conclusion: Findings suggest that while PM-KISAN improves liquidity and supports agricultural investments, its full potential can be realized through complementary measures such as enhanced extension services, awareness campaigns and integration with other agricultural support programs. The study offers actionable insights for policymakers to strengthen DBT schemes’ contribution towards building resilient rural livelihoods.