My response to this thread may seem irrelevant and offensive to any or many, but the simplest fact is that it cannot be blamed all on transgender. This has been a very old behaviour of our society to first degrade people based on their genders, groups or ethnicity and then when these people start getting a few benefits out of it, we are again there to criticize on how dare them to get these benefits. In fact, even the 'socio-political' over-drama of caste-based reservations has been there for the same reason. We cannot just blame one group or one party.
Coming back to the topic of transgender, it is obvious that this is not right to loot people in public places or anywhere for whatever reasons. I have even noticed a few times when they were almost taunting, haunting and arguing to grab more money from people. As far as you have no issues in offering a little amount of money, it should create no troubles, but being indirectly blackmailed for this is totally wrong.
I had several other points to rise on this, but most of them have been well raised in above comments. I would agree that government of most states has not done anything special for the well being of transgender so far. Basically, they too get born just like males and females do. But still, they have to fight and face a lot to get the equality in society all their lives. Not only government, but even our societies don’t like to find them on our paths as if they are untouchables or something... And this is really pitiful.
Over the time, if they have accepted it as their official source of earning, what can we do now? Just like there is a business or industry for everything, that is their industry and this is how they make money for their living. And this is not going to change anytime soon unless we as a society don't change our views and behaviour for them.
Of course, many of my friends may argue on why do not they do work than just begging and looting around. Then I guess, a simple Google search will bring many of such transgender friends who are working on this way and earning in their lives using a legal, respectful way. For the illiterates or uneducated individuals, I understand that it is easy to type in a response that they can do work of labour like other people and earn the legal way, but does anybody ever realize the real picture? Most probably, when a transgender tries to find a little job anywhere, s (he) is mocked and made fun by people. However, these same people can and should think again and invite transgender friends to live and work with them with equality.
There is a saying which pretty much sums up all of it in a line. It reads as follows-
"You don't know the truth. You know 'a' truth".
That is what is there.
"Your value does not decrease based on someone's inability to see your worth"