From a Republic to a Republic of Unequals

Constitution Day on November 26, 2024, marked 75 years since the adoption of the Indian Constitution, focusing on the country’s commitment to constitutional governance. The event highlighted the intellectual debates that led to the creation of a political identity that accommodates multiple cultural groups and addresses inequalities. The discussion also shed light on the evolving role of the state in creating an egalitarian society, a vision shaped by liberalism with a focus on reducing social and economic inequalities.

Vision of an Egalitarian Society

• Constitutional Ideology on Equality: The Indian Constitution was crafted to create an egalitarian society, focusing on reducing inequalities, both social and economic, by incorporating principles from egalitarian liberalism, including equal liberties, opportunities, and difference.
• State Intervention for Equality: The Constitution adopted liberal values but emphasized the state's role in addressing historical inequalities through affirmative action and reservations. This was crucial for providing equal opportunities and reducing social disparities.
• Judicial Interpretations: The Supreme Court of India has reinforced this vision, with judgments like S. Nakara (1982) and Air India Statutory Corporation (1996), highlighting the importance of a welfare state that aims to achieve economic and social justice by reducing inequalities.

Neoliberal Reforms and Impact on Inequality

• Shift Post-Economic Reforms: After the adoption of neoliberal economic reforms in the 1990s, the state’s role in reducing inequality diminished as market-driven policies prioritized private capital over welfare, resulting in growing economic disparities.
• Rising Inequality: Research by Lucas Chancel and Thomas Piketty revealed that after liberalization, the share of income held by the top 1% increased sharply, with the top 1% now holding 22.6% of the wealth by 2022-23, highlighting a regression to pre-Independence inequality levels.
• Current Inequality Status: The "State of Inequality in India Report" (2022) showed a stark contrast in wages, with the top 10% earning disproportionately high wages compared to the bottom 90%, leading to a widening gap and undermining the constitutional vision of economic equality.

Social Inequality and Wealth Concentration

• Overlap of Economic and Social Inequality: Economic inequality in India is strongly correlated with social inequality, as upper castes dominate wealth accumulation, with scheduled castes and tribes largely excluded from billionaire wealth.
• Wealth Distribution Among Castes: The report highlighted that by 2022-23, upper castes held 90% of the wealth, while OBCs and Scheduled Castes had significantly less representation, reinforcing social hierarchies in wealth ownership.
• Impact of Rising Billionaire Wealth: Oxfam’s report pointed out that the rise in billionaire wealth is exacerbating social and economic inequalities, as it now takes 941 years for a minimum wage earner to earn the same as a top corporate executive, undermining the egalitarian goals envisioned in the Constitution.

Practice Question:

Q. Discuss the constitutional vision of an egalitarian society in India and analyze how recent economic reforms have influenced the levels of social and economic inequality, particularly in the context of the rise in wealth concentration among the upper castes.