In India, Social Safety Net Programs (SSNPs) like the Public Distribution System (PDS), PM-POSHAN, and Integrated Child Development Scheme (ICDS), are a one-stop platform to meet a significant portion of the daily dietary requirements of the most vulnerable households, who also complement these meals through food purchased from markets and their own production. While staple foods continue to remain the focus of the PDS platform, there is a significant opportunity to leverage PM-POSHAN and ICDS for greater nutritional outcomes through a more diverse basket of nutritious food. Nutrition International carried out a series of analyses (public health and nutrition (PHN), economic, platform, and political) that aimed to develop a set of recommendations and options for the government to consider in terms of the most feasible path for pursuing dietary diversification with the goal of reducing the nutrition gap. In this chapter, we present the detailed economic analysis and the overall recommendations to help develop a diversified diets in ICDS and PM-POSHAN for the state of Telangana. The objective of the economic analysis was to estimate the cost of diversifying and to identify which of the meal’s options recommended by PHN analysis are most feasible from the perspective of cost, consumer preference, and availability. The analyses were undertaken separately for each of the population groups—pregnant women, lactating mothers, children between 7 months and 3 years, children between 4 and 6 years under the ICDS and primary and upper primary school children under PM-POSHAN. The economic analysis estimated the cost of a diet (meal per day per beneficiary) for each of the target population groups under different diet and policy scenarios. Further, the economic feasibility of these scenarios was analysed based on the current allocated budget of the SSNPs. The study found that in Telangana, there is an opportunity to diversify food baskets and meals by introducing millets, a variety of pulses and food groups like milk, fruits, and green leafy vegetables under ICDS and PM-POSHAN. Although, there is low economic feasibility of dietary diversification given the current allocated budgets. To meet the goal of reducing nutritional gaps, an increase in additional financial allocation will be required to achieve the minimum diet diversity under SSNPs.