Introduction

India’s impressive economic growth, currently ranking fifth globally by GDP, hides stark economic inequality. While a small minority enjoys enormous wealth, a large portion of the population faces poverty and undernourishment. This situation calls for urgent debate on providing fundamental economic rights to ensure social equity.

Economic Inequality in India

• India’s wealth distribution is highly unequal, with a large segment of the population earning less than ₹25,000 a month.
• 24 crore people suffer from undernourishment, while unemployment among educated youth is rising, with over 65% being jobless.
• Real wages in India have seen no significant growth since 2014, further worsening the economic disparity.

Need for Fundamental Economic Rights

• Economists Prabhat Patnaik and Jayati Ghosh propose five essential economic rights:

1. Right to affordable food
2. Right to employment or a living wage
3. Right to free, universal healthcare
4. Right to free and quality education
5. Right to old-age pension and disability benefits

• These rights are necessary to reduce inequality and improve the well-being of the masses.

Historical Context: Debate on Economic Rights

• During the framing of the Indian Constitution, economic rights were relegated to the Directive Principles of State Policy.
• Promata Ranjan Thakur argued in the Constituent Assembly for including economic rights as justiciable but faced opposition.
• Reservations against economic rights come from two sides:
  • Liberal argument: The economic system’s capacity limits the state’s ability to guarantee these rights.
  • Marxist argument: Human rights are seen as individualistic, countering community welfare.

Democratization of the Economy

• The state must ensure economic security for citizens as a fundamental right, not as charity.
• Economist Jean Dreze emphasizes the need to democratize the economy, linking true democracy to economic security.

Mobilizing Resources: Wealth and Inheritance Taxes

• A 2% wealth tax on the top 1% could generate ₹6.6 lakh crore annually, a key source of funds for fulfilling economic rights.
• An inheritance tax would prevent the unfair transfer of wealth and align with capitalist principles of merit-based wealth accumulation.

Conclusion

The debate on economic rights is not just about policy but about the democratic obligation of the state to ensure basic economic security for all. The Indian Constitution, being dynamic, can adapt to include economic rights to uplift the masses and reduce inequality.