A key player in the world economy, India s national economy today allows for a sustainable expansion and significant improvements in social aspects. This remarkable economic growth has however failed to include and benefit all citizens; instead it deepened social and economic inequalities. This inequality manifests itself among other aspect, in widespread hunger and malnutrition, which remained serious challenges to development despite India being meanwhile a food surplus state. Hence, while the GDP since 1991 has more than doubled the calorie consumption of the bottom half has consistently declined since 1987. As a democracy, India yet guarantees everyone living within its jurisdiction the most essential and basic socio-economic rights. It ratified the Universal Declaration of Human Rights, is state party to the International Covenant on Economic, Social and Cultural Rights (ICESCR), committed itself to the Millennium Development Goals (MDGs), and approved to respect, protect and fulfill the right to food. In face of high malnourishment and hunger, India is hence obliged to take measure to fight malnutrition and protect its people form hunger. For this reason, proposals have been made to explore new methods and to experiment with cash-based programs similar to schemes like Bolsa Familia in Brazil or Opportunidades/Progresa in Mexico. This study therefore explores India s capacities to administer an effective system of cash transfers and the possibility of the latter to contribute to a situation of improved food security among India s urban poor.