India’s Inequality and Neoliberal Reforms Versus Constitution

Source: The post India’s Inequality and Neoliberal Reforms Versus Constitution has been created, based on the article “From a republic to a republic of unequals” published in “The Hindu” on 27th November 2024

UPSC Syllabus Topic: GS Paper2- Constitution of India —historical underpinnings, evolution, features, amendments, significant provisions and basic structure.

Context: The article discusses how India’s Constitution aims for an egalitarian society through state intervention, but neoliberal reforms have widened economic and social inequalities. It highlights rising wealth concentration, overlapping with caste-based inequality, threatening the Constitution’s vision of equality.

For detailed information on Status of Inequality In India read this article here

How does the Constitution promote an egalitarian society?

1. Egalitarian Vision: The Constitution seeks to minimize inequalities in income, status, and opportunities, aiming for an egalitarian society. Article 38(2) and Article 39(c) emphasize reducing wealth concentration and ensuring equality.
2. Affirmative Action: Policies like reservations and treating unequals unequally were introduced to bridge historical and social gaps.
3. Fundamental Rights and DPSP: Part III and Part IV ensure equality of liberties, opportunities, and addressing economic disparities, inspired by Rawls’ egalitarian liberalism.
4. Judicial Interpretation: In D.S. Nakara vs Union of India (1982), the Supreme Court emphasized socialism as ensuring social security and a decent life for all. In Samatha vs State of Andhra Pradesh (1997), it affirmed that reducing income inequality and creating equal opportunities align with constitutional values.

What impact have neoliberal reforms had on inequality?

1. Neoliberal reforms in the 1990s shifted India’s focus from welfare policies to market-driven growth, widening inequalities.
2. The top 1% of earners increased their income share from 6% in the 1980s to 22.6% by 2022-23 (Chancel and Piketty).
3. Wealth concentration worsened; the top 1% owned 40.1% of total wealth in 2022-23, surpassing pre-Independence levels.
4. Economic and social inequalities overlap, with upper castes owning 90% of billionaire wealth by 2022-23, while Scheduled Tribes had none and OBC representation fell from 20% in 2014 to 10%.
5. Oxfam reported a rise in billionaires, from 9 in 2000 to 119 in 2023, highlighting extreme inequality.
6. This shift violates constitutional ideals of reducing inequality, as wealth concentration benefits a privileged few while marginalizing the majority.

What is the risk to constitutional democracy?

1. Neoliberalism undermines the Constitution’s vision by increasing inequalities.
2. Social and economic inequalities risk political democracy, as warned by Dr. B.R. Ambedkar.
3. To honor the Constitution, India must critically evaluate its policies and refocus on equality.

Question for practice:

Examine how neoliberal reforms have impacted the Constitution’s vision of an egalitarian society in India.