Article 39 is a crucial part of the Directive Principles of State Policy (DPSPs) enshrined in Part IV of the Indian Constitution. These principles are fundamental to the governance of the country, though not directly enforceable by courts. Article 39 lays down several principles of policy to be followed by the State towards securing a just social and economic order.
Specifically, Article 39(c) addresses the distribution aspect of the economic system. It serves as a directive principle guiding the State to shape its economic policies in a manner that promotes equitable distribution and prevents disparities that harm the general welfare.
Original Text
39. The State shall, in particular, direct its policy towards securing— … (c) that the operation of the economic system does not result in the concentration of wealth and means of production to the common detriment; …
Detailed Explanation
Article 39(c) mandates the State to formulate its policies in such a way that the economic system, through its operation, does not lead to the accumulation and concentration of wealth and the means of production in the hands of a few individuals or groups. The core concern is that such concentration should not be to the common detriment, meaning it should not be harmful or detrimental to the interests, welfare, and well-being of the general public or the community as a whole.
- Wealth: This term broadly includes all forms of assets, property, and resources that have economic value.
- Means of Production: This refers to the resources and facilities required to produce goods and services, such as land, factories, machinery, capital, raw materials, etc.
- Concentration: This implies the accumulation of a disproportionately large share of wealth and means of production in the hands of a small section of the population, leading to economic disparities.
- Common Detriment: This is the crucial qualification. The concentration is objectionable if it negatively impacts the society at large, potentially leading to exploitation, social inequality, denial of opportunities, or hindering overall societal progress and welfare.
This directive reflects the socialist aspirations embedded in the Preamble of the Constitution. It aims to prevent the emergence of monopolies and economic power centres that could exploit the masses and distort the economy away from the common good. It provides a constitutional basis for various state interventions in the economy, including regulations, progressive taxation, land reforms, nationalization (historically), and laws to control monopolies and promote fair competition.
The principle recognizes that economic activity, if left unchecked, can lead to imbalances that are harmful to social justice. Therefore, it imposes a positive obligation on the State to actively intervene and regulate the economic system to ensure that wealth and resources are distributed more equitably and do not serve only a narrow section of the population at the expense of the broader community.
Detailed Notes
- Part of Directive Principles of State Policy (DPSPs) under Part IV of the Constitution.
- Not directly enforceable in courts, but fundamental in the governance of the country.
- Directs the State to shape its economic policy.
- Primary objective: Prevent concentration of wealth and means of production.
- Wealth: Includes assets, property, resources.
- Means of Production: Includes land, factories, machinery, capital, etc., used for production.
- Concentration: Accumulation in the hands of a few.
- Condition for concern: Concentration must be “to the common detriment.”
- Common Detriment: Harmful to the general public’s interests, welfare, or well-being.
- Aims to achieve economic justice and reduce inequality.
- Reflects the socialist ideals of the Indian Constitution’s Preamble.
- Provides basis for state intervention in the economy.
- Supports policies like:
- Progressive taxation.
- Land reforms (land ceiling acts).
- Control of monopolies and restrictive trade practices (e.g., MRTP Act, Competition Act).
- Nationalization of industries or banks (historically).
- Places a positive obligation on the State to regulate the economic system.
- Seeks to prevent the creation of economic power centres that exploit society.
Additional Comments
- Article 39(c), along with 39(b) (distribution of material resources for common good), forms the basis for significant economic legislation aimed at restructuring the economy.
- The constitutional validity of laws enacted to give effect to Article 39(b) and (c) received special protection under Article 31C, which was inserted by the 25th Amendment Act, 1971. Article 31C originally stated that laws made to implement Article 39(b) or (c) could not be challenged on the ground that they violated Articles 14, 19, or 31 (Article 31 has since been repealed as a Fundamental Right).
- The Supreme Court, in cases like Kesavananda Bharati v. State of Kerala (1973) and Minerva Mills Ltd. v. Union of India (1980), has examined the relationship between Fundamental Rights and DPSPs, particularly concerning Article 31C. While 31C’s original broad scope regarding all DPSPs was curtailed in Minerva Mills (only 39(b) & (c) protection retained against 14 & 19 challenge), the principle that laws implementing 39(b) & (c) are paramount over Articles 14 and 19 remains relevant for specific legislation.
- This principle underscores the Constitution’s commitment to socio-economic transformation alongside political democracy.
Summary
Article 39(c) of the Indian Constitution is a Directive Principle of State Policy mandating the State to ensure that the functioning of the economic system does not lead to the concentration of wealth and means of production in a manner detrimental to the common good. This principle guides the State in formulating policies aimed at preventing economic disparities, controlling monopolies, and promoting equitable distribution of resources to serve the larger interests of society, reflecting the Constitution’s commitment to economic justice and socialist ideals.