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Republic to a Republic of Unequals
Context:
On November 26, 2024, India celebrated Constitution Day, marking 75 years since the adoption of the Constitution and the establishment of constitutional governance in independent India.
Background
- The Constituent Assembly debates reflect the intellectual engagement of leaders across the ideological spectrum—from right to left—in shaping a unified political identity that accommodated the interests and rights of diverse cultural groups.
- While the Constitution-makers embraced a liberal framework, they envisioned a state that would play an active role in addressing the widespread social and economic inequalities that prevailed at the time of Independence.
Liberalism, as a political ideology, emphasises individual freedom, arguing that human potential—whether intellectual, moral, or physical—thrives best in a free environment. Liberty, therefore, became a cornerstone of this ideology.
Neoliberalism is a complex and multifaceted economic and political philosophy that advocates for free markets, minimal government intervention, and the primacy of individual choice. It emerged in the mid-20th century as a response to the perceived failures of classical liberalism and Keynesian economics, particularly during periods of economic crisis such as the Great Depression and the stagflation of the 1970s.
- Indian Constitution-makers aimed to establish a liberal political state but recognised that a complete withdrawal of the state would only exacerbate existing inequalities.
- They believed in a positive role for the state, enabling it to create conditions where all citizens could participate equally in the development process.
- Consequently, measures like affirmative action and reservation policies were introduced to treat unequals in a manner that could achieve the constitutional vision of equality.
An Egalitarian Vision
- Constitution: The Constitution aspires to create an egalitarian society by reducing economic inequalities and promoting equal opportunities.
- While egalitarian liberalism seeks to reduce inequality, it does not strive for absolute equality.
- Rawls’ Principes: This vision aligns with John Rawls’ principles of egalitarian liberalism, including equal basic liberties, equality of opportunity, and the principle of difference.
- Provisions: These principles are reflected in the Fundamental Rights (Part III) and Directive Principles of State Policy (DPSP) (Part IV) of the Constitution.
- Article 38(2) of the DPSP directs the state to minimise income inequalities and eliminate disparities in status, facilities, and opportunities.
- Similarly, Article 39(c) emphasises preventing the concentration of wealth and ensuring that economic systems work for the common good.
- Legal Cases: The Supreme Court has often reiterated these principles in its judgments.
- In D.S. Nakara & Others vs. Union of India (1982), the Court highlighted the socialist framework of the Constitution, emphasising a decent standard of life and comprehensive social security.
- In Air India Statutory Corporation vs. United Labour Union & Ors (1996), the Court affirmed that the Constitution’s Preamble, Fundamental Rights, and DPSP aim to establish an egalitarian social order ensuring social and economic justice.
- In Samatha vs. State of Andhra Pradesh & Ors. (1997), the Court interpreted “socialism” as reducing income inequalities and providing equal opportunities.
- Justice V.R. Krishna Iyer’s interpretation of Article 39(b) in State of Karnataka vs. Shri Ranganatha Reddy & Anr. recognised public and private resources as community assets, reinforcing the state’s redistributive powers for reducing inequality.
Economic Reforms and Rising Inequality
- Neoliberalism: However, the shift to neoliberal economic reforms in the 1990s marked a departure from the constitutional vision of a welfare state.
- Research: Research by Lucas Chancel and Thomas Piketty highlights this trend.
- Their 2019 study, Indian Income Inequality, 1922-2015: From British Raj to Billionaire Raj?, shows that while the share of the top 1% in total income decreased from 21% in the 1930s to 6% by the 1980s—thanks to welfare interventions—this share surged to 22% following neoliberal reforms.
- Their 2024 study further reveals that by 2022-23, the top 1% controlled 22.6% of income and 40.1% of wealth, exceeding pre-Independence levels of inequality.
- EAC-PM: The State of Inequality in India Report (2022), commissioned by the Economic Advisory Council to the Prime Minister, underscores these disparities.
- Data from the 2019-20 Periodic Labour Force Survey shows that the top 10% of earners make over ₹25,000 per month, while the remaining 90% earn less.
- This stark income gap underscores the erosion of constitutional ideals and the deepening of poverty for the majority.
Intersection of Social and Economic Inequality
- The 2024 report by the World Inequality Lab reveals that by 2022-23, 90% of billionaire wealth in India was held by upper castes, while Scheduled Tribes had no representation.
- Other Backward Classes (OBCs) held just 10% of billionaire wealth, down from 20% in 2014, while Scheduled Castes had a mere 2.6%.
- This concentration of wealth among upper castes highlights the entrenchment of social and economic advantages.
- Oxfam International’s data further illustrates the stark inequality: the number of billionaires in India rose from nine in 2000 to 119 in 2023, and it would take a minimum-wage worker 941 years to earn what a top corporate executive makes in a single year.
As Constitution Day reminds us of our foundational values, it is an opportune moment to critically assess our political and economic systems. Dr. B.R. Ambedkar’s warning—that social and economic inequality endangers political democracy—remains profoundly relevant today.
