Why in the news? 

The debate surrounding the redistribution of wealth has piqued interest during the ongoing election campaigns.

What does the Constitution provide?

• Preamble to the Constitution: It outlines the objectives of the Constitution, including securing social, and economic justice, liberty, and equality for all citizens.
• Part III and IV:  These are principles that the central and State governments should follow to achieve social and economic justice in our country. Unlike the fundamental rights in Part III, the DPSP is not enforceable in court.
•  Article 39(b) and 39 (c): Article 39(b) emphasizes the distribution of ownership and control of material resources to serve the common good. Article 39(c) aims to prevent the concentration of wealth in a manner detrimental to the common good.

The history of the ‘Right to Property’ in the Indian Constitution:

• Original Guarantee: The Constitution initially guaranteed the right to property as a fundamental right under Article 19(1)(f). It provided that individuals have the right to acquire, hold, and dispose of property.
• Compensation Requirement: Article 31 of the Constitution mandated that the state must provide compensation in case of the acquisition of private property for public purposes.
• Land Reforms and Public Welfare: The government, facing challenges such as land reforms and the need for public infrastructure development, found the original provisions restrictive due to inadequate resources. This led to amendments aimed at providing more flexibility in acquiring land for public welfare.
• Constitutional Amendments: Notable amendments such as Articles 31A, 31B, and 31C were introduced to curtail the right to property and facilitate land acquisition for public welfare projects.
• Judicial Interpretation of Constitution ammendment: The Supreme Court interpreted the relationship between fundamental rights and Directive Principles of State Policy (DPSP) in various cases. In the Golak Nath case (1967), the Court held that fundamental rights cannot be diluted to implement DPSP. However, in the Kesavananda Bharati case (1973), the Court upheld the validity of Article 31C, subject to judicial review.
• Harmonious Balance: In the Minerva Mills case (1980), the Supreme Court emphasized the need for a harmonious balance between fundamental rights and DPSP in the Constitution.
• 44th Amendment Act: In 1978, the property right was removed as a fundamental right through the 44th Amendment Act, making it a constitutional right under Article 300A. This aimed to reduce excessive litigation and protect public welfare projects.

Impacts due to the shift from a Socialistic to a Market-Driven Economy:

• Impact of Economic Policies: The socialistic policies of the early decades after independence focused on land reforms, nationalization of industries, high taxation rates, and regulations on private enterprise. These policies aimed to reduce inequality and redistribute wealth but were criticized for stifling growth and leading to inefficiencies.
• Changes in Taxation: Over the years, there have been significant changes in taxation policies, including the abolition of estate duty in 1985 and wealth tax in 2016. Income tax rates were also reduced considerably, reflecting a shift towards a more business-friendly environment.
• Growing Inequality: Despite economic growth, there has been a growing concern about inequality. Reports, such as the one by the World Inequality Lab, highlight the widening wealth and income gap, with a significant portion of the wealth concentrated among the top 10% of the population.
• Opposition Criticism: The ruling party and its supporters have criticized the Opposition, alleging that their proposed measures, such as the reintroduction of inheritance tax, would burden even the poorer sections of society.
• Legal Interpretation: The Supreme Court’s involvement in the debate is highlighted by its decision to constitute a nine-judge Bench to interpret whether Article 39(b) of the Constitution, which pertains to the distribution of material resources for the common good, includes private resources.
• Central Question of the debate: The central question in the current debate revolves around the balance between economic policies that promote growth and efficiency versus those aimed at reducing inequality and ensuring social justice.

Way forward: 

• Inclusive Growth: While promoting innovation and growth, it’s essential to ensure that the benefits are distributed equitably across all sections of society, especially the marginalized. Policies should aim for inclusive growth where the benefits reach those who need them the most.
• Debate and Adaptation: Economic policies should be framed after adequate debate and consideration, taking into account current economic models and global best practices. There should be a continuous process of adaptation and refinement to address emerging challenges and opportunities.
• Empowerment of Marginalized: Special attention should be given to empowering marginalized communities through targeted interventions such as education, skill development, access to resources, and opportunities for economic participation.

Mains PYQ: 

Q Critically discuss the objectives of Bhoodan and Gramdan movements initiated by Acharya Vinoba Bhave and their success. (UPSC IAS/2013)

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