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Status of Inequality in India

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 27-Nov-2024

Source: The Hindu 

Introduction 

The changes India has undergone, transforming from a republic to what is described as a "republic of unequals." The constitutional changes, the intellectual engagement of leaders, and the rise of economic and social inequality in the country. The overview touches on various perspectives from scholars and commentators on this significant shift in India's political and social landscape. 

What is DPSP under the Indian Constitution? 

  • The Directive Principles of State Policy (DPSP) are a set of principles in the Indian Constitution that provide guidelines for the central and state governments of India to consider when framing laws and policies. 
  • The DPSP are mentioned in Part IV of the Indian Constitution, from Articles 36 to 51. 
  • They are non-justiciable, meaning they are not enforceable by the courts, but the governments are expected to apply them in governance. 
  • The DPSP aim to establish a social and economic democracy in India, in addition to the political democracy established by the Fundamental Rights. 
  • They cover a wide range of areas such as social welfare, economic well-being, environmental protection, and more. 
  • DPSP includes the state's obligation to secure a social order that promotes the welfare of the people, to provide free and compulsory education for children, to protect the environment, and to promote international peace and security. 
  • While the DPSP are not legally binding, they play an important role in shaping the legislative and executive agenda of the government and have been used by the courts to interpret the Fundamental Rights and other constitutional provisions. 

What is Article 38 and Article 39 of Indian Constitution? 

  • Article 38: 
    • The State shall strive to promote the welfare of the people by securing and protecting a social order with justice - social, economic, and political. 
    • The State shall endeavor to minimize inequalities in income, status, facilities, and opportunities among individuals and groups. 
  • Article 39: 
    • The State shall direct its policy towards securing an adequate means of livelihood for all citizens, men and women equally.  
    • The State shall ensure that the ownership and control of the community's material resources are distributed to best serve the common good.  
    • The State shall prevent the concentration of wealth and means of production to the common detriment and ensure equal pay for equal work for men and women. 
    • The State shall ensure that the operation of the economic system does not result in the concentration of wealth and means of production to the common detriment. 
    • The State shall direct its policy towards securing equal pay for equal work for both men and women. 
    • The State shall protect the health and strength of workers, men and women, and ensure the tender age of children is not abused. Citizens should not be forced by economic necessity into avocations unsuited to their age or strength. 
    • The State shall provide opportunities and facilities for children to develop in a healthy manner, in conditions of freedom and dignity, and protect them against exploitation, both moral and material.

How Has the Indian Constitution and Supreme Court Shaped an Egalitarian Vision Through Article 38 and Related Provisions? 

  • Article 38 of the Directive Principles of State Policy, which empowers the state to minimize inequalities in income and emphasize the distribution of community resources.  
  • The Supreme Court has interpreted this article as mandating the state to take measures to reduce economic and social inequalities. 
  • The Constitution reflects the three fundamental principles of equality, justice, and liberty.  
  • These principles are embodied in various parts of the Constitution, including Part III on Fundamental Rights and Part IV on Directive Principles of State Policy. 
  • The Constitution aims to create a liberal political state in India that provides equal opportunities and facilities to all citizens. 
    •  This vision is reflected in the constitutional framework and the interpretation of its provisions by the courts. 
  • The Supreme Court of India's 1992 decision in the D.S. Nakara & Others v. Union of India case,1982 where the court ruled that the basic structure of the constitution is to provide social and economic justice. 
  • In Air India Statutory Corporation v. United Labour Union & Ors (1996), the Court said that the constitution aims to create a welfare state that ensures the dignity of the individual and equal opportunities for all people. 
  • In Samatha v. State of Andhra Pradesh & Ors. (1997), case where the Supreme Court interpreted the meaning of the word "socialism" in the Indian Constitution as protecting social and economic justice and the dignity of individuals by providing equality of status and opportunities. 
  • In the 1997 case, the Court held that the Constitution envisages the establishment of a socialist state that ensures distributive justice. 
  • In n Samatha vs State of Andhra Pradesh & Ors. (1997), case where the Supreme Court interpreted the meaning of the word "socialism" in the Indian Constitution to include empowering the weaker sections by creating opportunities and facilities to create an egalitarian social order. 
  • The 2019 case reinforced the Court's view that the Constitution mandates the state to ensure social and economic justice and the dignity of individuals. 
  • the interpretation of Article 38(b) of the DPSP (Directive Principles of State Policy) by the Supreme Court, which empowers the state to minimize inequalities in income and emphasize the distribution of community resources. 
  • These landmark legal rulings and interpretations have played a significant role in shaping the constitutional vision and ideology around creating an egalitarian society by strengthening the state's power to reduce economic and social inequalities.

How Have Neoliberal Economic Reforms Impacted India's Constitutional Vision of Equality and Social Justice? 

  • After the adoption of neoliberal economic reforms in India in the 1990s, the constitutional ideology of creating an egalitarian society took a back seat. 
  • The idea of a welfare state as envisaged in the Indian Constitution has withdrawn its commitments towards creating an egalitarian society. 
  • Researchers from the Paris School of Economics has documented the rising inequality in India in their work "Indian Income Inequality, 1922-2015: From British Raj to Billionaire Raj?" (2019). 
  • Their research shows that the share of the top 1% of earners was less than 21% of total income in the 1930s, but this gap reduced to 6% of total income in the 1980s due to welfare state interventions. 
  • However, after the implementation of neoliberal reforms in the 1990s, there were major structural changes in the Indian economy that prioritized private capital investment and a slow withdrawal of the welfare interventionist state. 
  • The state took on a more positive role of creating and strengthening markets rather than working towards creating an egalitarian society as envisaged in the Constitution. 
  • As a consequence of these changes, the top 1% income has reached 22% of the total income, pushing back to an inequality situation worse than the pre-Independence period. 
  • Recent research in 2024 emphasizes that the top 1% of income and wealth shares have reached 22.6% and 40.1% by 2022-23, which is considered very high, violating the constitutional ideology of equality. 
  • India has implemented a successful hospital cornea retrieval program (HCRP) to increase corneal donations. In an HCRP, grief counselors sensitively approach the families of deceased individuals and encourage them to donate the corneas.  
  • This 'required request' approach has been highly effective, with over 70% of the corneas harvested at the L.V. Prasad Eye Institute coming from HCRP, allowing some states to eliminate waiting lists for corneal transplants. 

Conclusion  

The complex and multifaceted nature of the transition from a republic to a republic of unequal in India. It states the need for critical evaluation of the political and economic practices that have contributed to growing inequality, and the importance of upholding the principles of equality and social justice enshrined in the Indian Constitution.