The objective of this study is to analyse the design and implementation aspects of both general and specific purpose transfers in India. This study attempts to undertake an empirical analysis of the transfers system in India. The report covers discussion on the theoretical rationale for the transfer system and analysis of the structure of policies and institutions in India dealing with the transfer system. The report also makes a broad analysis of general and specific purpose transfers in the Indian context to identify the shortcomings. It also undertakes empirical analysis of the three major centrally sponsored schemes namely, the National Health Mission (NHM), Sarva Shiksha Abhiyan (SSA) and Mahatma Gandhi national Rural Employment Guarantee Act (MGNREGA).