Introduction
Recently, in a poll conducted by Reuters, experts and policy makers expressed their low confidence in the possibility of India tackling its mushrooming economic inequality any time soon, despite the ‘roaring GDP growth.’[1]
The poll has brought to the notice, the need to take concrete steps to reduce the economic inequality in the country. This need to reduce the economic inequality makes the feasibility of reservation on economic basis, a relevant topic, and a topic worthy of discussions, not only among elites, but also among the common sections of the society.
Taking this into consideration, this article aims to shed light on the arguments for and against the implementation of the reservation on the economic basis.
Why Should Reservation on Economic Basis Not be Granted?
One of the most important arguments against economic status being a criterion for reservation is the fact that it is not specifically mentioned in the constitution. The basic intent behind introducing article 15(4), 15(5), 16(4), 16(4A) and 16(4B) of part 3 is ending the social exclusion and not merely reducing economic inequality. These articles use the words ‘socially and educationally backward classes of citizens,’ and not simply ‘economically backward classes of the citizens,’ and thus, the opponents of granting reservation on economic criterion, argue that the main aim of implementing reservations is social upliftment of socially and educationally backward citizens and not poverty alleviation. They also often point out the judgment of Hon’ble SC in Indra Sawhney[2], in which the court held that economic criterion cannot be the sole basis of granting reservation.
It is also argued that the social exclusion that was prevalent; was not practiced on economic basis, but on the basis of caste, and thus, these articles, which are aimed at ending caste-based discrimination primarily, should not be used for the purpose of ending economic inequality.
Another argument against economic status being a criterion for reservation is that, to end economic inequality, the government can take several steps such as reforming its taxation policy, promoting self-employment, etc., instead of granting reservation only on economic basis, thus initiating heated debates which can potentially turn into conflicts. Since such reservation is not covered within the ambit of concerned provisions of the constitution.
Why Should reservation on Economic Basis be Granted?
Reservation on economic basis should be granted for mainly three reasons –
- The judicial interpretations of the constitutional provisions regarding reservation.
- The guaranteed results of reservation policy and the impact of millennial and Gen-Z generations.
- The constitutional and the international obligations.
(A) The judicial interpretations of the constitutional provisions regarding reservation:
Even if the Indian constitution does not expressly provide for reservation on economic basis, with changing times, it needs to be understood that social upliftment of an individual goes hand in hand with the economic upliftment. In MR Balaji v State of Mysore[3], Hon’ble SC stated that “Ultimately, social backwardness is essentially the results of poverty.” Citing this judgement, Desai J. in K.C. Vasanth Kumar v. State of Karnataka[4], observed that those who are economically backward, become socially backward automatically. In R Chitralekha v State of Mysore[5], it was held that classification of backward classes only on economic grounds does not offend article 15(4).
In the light of all these judgments, it is pertinent to consider the recent judgment of Hon’ble SC upholding the EWS quota. During the judicial proceedings of the case challenging the quota, the constitution bench of the Hon’ble court asked a question: “What is so principally, so fundamentally wrong in singling out the economic criterion for grant of reservation?[6]”
These judicial pronouncements indicate that the judiciary is progressively inclined towards considering the economic status as one of the primary criterion for granting reservation, although not the only criterion.
(B) The guaranteed results of reservation policy and impact of millennial and Gen-Z generation:
It is true that the social discrimination was practiced on the basis of caste and not on the basis of the economic development of the society. However, in contemporary India, largely occupied by millennials and Gen – Z, who do not believe in caste-based discrimination, it is mainly the economic status and not the caste, which determines the social status of the individual.
Another important aspect that must be inquired into is that although there are several steps the government can take, to end economic inequality, the reservation policy still proves to provide guaranteed results. The reservation granted to socially backward classes has been by and large successful so far, in uplifting the social status of those classes and also in changing the mindset of the country towards these classes, to a large extent. This illustrates that, reservation policy can be an initial step the government can take to end the economic inequality, although not the only step.
It also must be understood that granting reservation on economic basis would initiate heated debates, but we can ensure that these debates turn into fruitful discussions and not conflicts.
(C) The constitutional and the international obligations
The constitutional and international obligations as far as ending economic inequality are concerned, go hand in hand. These obligations are not mutually exclusive but they are supplementary to each other.
The first and foremost constitutional obligation lies in the preamble of the constitution[7]. The preamble to the constitution provides that we the people of India shall secure to all the citizens of India, the social, economic, and political justice. Social and economic justice are integrated with each other and cannot be looked at in an isolated manner. Social justice covers economic justice within its ambit.[8] Economic justice means reducing economic barriers, promoting economic opportunity, and promoting economic equality.[9] To secure economic justice, economic inequality has to be abolished, and as is articulated above, reservation could prove to be a very powerful tool for the purpose of ending economic inequality.
The constitutional obligation also lies in article 39(c) of the Constitution of India, which is one of the directive principles of state policy, mentions that the state shall strive to ensure that the operation of economic system does not result in concentration of wealth and resources, to the common detriment. In other words, it directs the state to work towards abolishing economic inequality.
In the year 2015, India along with 192 other countries adopted this Sustainable Development Goals resolution. The 10th goal among the seventeen goals adopted under the resolution is ending economic inequality. However, it is pertinent to consider that the Sustainable Development Goals Report, 2022[10] highly focus on the same. Abolishing economic inequality thus, forms a part and parcel of India’s efforts towards attaining SDGs. Thus, ending economic inequality is the international obligation of the state.
However, when article 51(c) and article 253 are read together with the 10th SDG mentioned above, ending economic inequality becomes a constitutional as well as an international obligation of the state.
As is mentioned above, the reservation policy is most likely to have guaranteed results and although not the only step to be taken towards ending economic inequality, it can prove to be a very useful policy towards fulfilling state obligations under article 39, article 51(c), article 253 read along with the 10th SDG mentioned above.
Conclusion of the Analysis
Although there are several arguments against granting reservation on economic basis, the abovementioned analysis makes it clear that the arguments in favor of constitutional feasibility of granting reservation on economic basis, overweigh the arguments made against it, and thus, the author is of opinion that it is high time that we start re-thinking the literal interpretation of the constitutional provisions regarding reservation in part III. Instead of contending that the constitution permits only the reservation on the caste-basis or that these provisions are not meant to eradicate poverty or income inequality; we must accept that, today, economic status might overweigh the caste in determining the status of an individual in the society and that, social backwardness is largely the consequence of weaker than decent economic status. Thus, the economic status of individuals should be considered as one of the criteria for granting reservation, although not the only criterion.
Recommendations
The Indra Sawhney judgement when read with the other judicial precedents referred in the critical analysis section, help the author conclude that reservation based solely on economic criterion may not be acceptable. However, considering the economic status of a particular class of citizens for determining whether the reservation can be granted, is not only acceptable but also essential, given the progressively increasing economic inequality. Thus, it is suggested that an amendment be made to the relevant provisions of the constitution and the phrase ‘economically backward’ or any other phrase suitable to the language of the provision, be added. For example, article 15(4) may look as follows, if the suggested amendment is implemented:
Nothing in this article or in clause (2) of article 29 shall prevent the State from making any special provision for the advancement of any socially and educationally and economically backward classes of citizens or for the Scheduled Castes and the Scheduled Tribes.
This will lead the country to a common consensus that economic criterion is indeed an important criterion while determining whether a particular class of society be granted reservation. The debates that will follow this amendment will remove a lot of existing ambiguities and misconceptions regarding the relevant legal provisions. If not this, this amendment will at least make the present issue, a part of the discussions amongst the citizens.
Conclusion
In the author’s view, the reservation on the economic basis should be granted and economic status should be considered while granting reservation, although it is not to be singled out.
As far as the constitutional aspect is concerned, as is evident from the aforesaid analysis, literal interpretation of the constitutional provisions on the reservation does not provide for economic status as a criterion for reservation, the judicial interpretation supports the idea. Thus, the constitution does not prohibit considering economic status as the basis of granting reservation, contrarily it supports the idea.
If the idea of considering economic status while granting reservation is acceptable, making the amendment suggested above may be helpful.
References
- Reuters.Com,Accessed at: https://www.reuters.com/world/india/india-economic-inequality-persist-despite-roaring-gdp-growth-2024-06-20/
Last Accessed on: 18/12/2024. ↑ - Indra Sawhney v. Union of India and Ors., MANU/SC/0104/1993 ↑
- M.R. Balaji v. State of Mysore, 1963 Supp (1) SCR 439 ↑
- K.C. Vasanth Kumar v. State of Karnataka, 1985 Supp SCC 714 ↑
- R. Chitralekha v. State of Mysore, (1964) 6 SCR 368 ↑
- The Hindu. (2022, September 15). What’s wrong in using economic criteria for reservation, asks Supreme Court.Accessed at: https://www.thehindu.com/news/national/constitution-bench-asks-what-is-so-principally-so-fundamentally-wrong-in-singling-out-economic-criterion-for-reservation/article65894398.ece ,
Last accessed on: 19/12/2024. ↑
- Department of Legal Affairs,
Accessed at: https://legalaffairs.gov.in/sites/default/files/Preamble%20in%20English-F.pdfLast Accessed on: 19/12/2024. ↑ - Mahantesh G. S., Social and Economic Justice under Constitution of India: A Critical Analysis, Volume 2, IJLMH, page 2, 2018, Accessed at: https://www.ijlmh.com/wp-content/uploads/2019/04/Social-and-Economic-Justice-under-Constitution-of-India-A-Critical-Analysis.pdf ↑
- Id. ↑
- Sustainable Development Goals,Accessed at: https://unstats.un.org/sdgs/report/2022/The-Sustainable-Development-Goals-Report-2022.pdf
Last Accessed on: 20/12/2024. ↑
(This post has been authored by Samarth Gosavi, a third year law student at Symbiosis Law School, Pune.)
CITE AS: Samarth Gosavi, ‘A Case for Reservation on Economic Basis’ (The Contemporary Law Forum, 25 January 2025) <https://tclf.in/2025/01/25/a-case-for-reservation-on-economic-basis/>date of access
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