Freedom from Economic Exploitation for BCs?
T. Chiranjeevi (IAS, Retired)
In India today, economic inequalities are alarmingly increasing. The rich are becoming richer, and the poor are becoming poorer. Wealth is concentrated in the hands of a few, transforming the democratic nation into an oligarchy ruled by a select wealthy group. Historically, for the past 3,000 years, the Indian Varna system has deprived the majority of Shudras (present-day BC castes) of property ownership. Manusmriti’s lament! 8.417: “A Brahmin can unhesitatingly take the wealth of a Shudra if he needs it; for a Shudra has no right to own property.” While modern education and constitutional rights offer everyone the opportunity to acquire property, even after 77 years of independence, BCs, SCs, and STs have not achieved economic progress and continue to be suppressed. The deeply entrenched Varna and caste systems are the primary reasons. According to Marxist theory, the economic system is a substructure upon which all superstructures are built. However, this does not apply to Indian society. Here, everything rests on the foundations of the Varna and caste systems, intertwined with Brahminism and the philosophy of Manu. A person's assets, status, and respect are determined at birth. The world may be governed by money, but here, the Varna and caste systems hold sway. Within the Varna system, Shudras and Ati-Shudras were relegated to the lowest rung, and Manu's unjust laws denying them property rights forced them into castes and professions dependent on physical labor. Even after independence, the lack of quality education, the absence of reservations in education and employment until 1973 in the state and 1993 at the center, the destruction of traditional caste-based occupations, the government's superficial economic development schemes, and the inability to secure bank loans for self-employment, businesses, and industries have plunged them into economic abyss. Only a tiny fraction of BCs have achieved economic well-being.
The Indian Constitution, aiming to prevent economic inequalities, declared its commitment to the concept of Socialism. Following independence, numerous land reforms were implemented, public sector institutions were established, and private sector entities like banks and oil marketing companies were nationalized. However, the “Liberalization-Privatization-Globalization” era, beginning in 1991, has drastically increased economic inequalities in India due to the privatization of public sector institutions, foreign investment, and the exploitation of natural resources. Today, India's economy is nearing four trillion. Despite being the world's fifth-largest economy, our per capita income ranking is 144th out of 194 countries, at approximately $2,500 (Rs. 220,000). The majority of SCs, STs, and BCs do not even earn $500 (Rs. 43,000). Consequently, there have been no significant qualitative improvements in the living standards of Dalits, Adivasis, and BCs. Urbanization has fueled migration, leading to unemployment and precarious livelihoods with meager wages. In contrast, the lives of upper castes have undergone revolutionary transformations. Economic relations have become intertwined with political power, making them an invincible political and economic force. They dominate every sector. As of December 24th, according to the Union Bank of Switzerland, India has 185 billionaires. The number of billionaires has increased by 123% in the last 10 years, and their combined wealth has surged by 263% to reach 905.8 billion. This is primarily due to the government policies and crony capitalism prevalent over the past decade. India ranks third globally in dollar billionaires, trailing only the US and China. BCs remain confined to wage labor (gig workers), dependent solely on physical toil. The Hurun India 2024 report places Hyderabad third after Mumbai and Delhi, with 18 billionaires, all from upper castes. Among the top ten wealthiest individuals, there are 7 Reddys, 1 Kamma, 1 Raju, and 1 Velama, and 104 individuals possess net assets of Rs. 1,000 crore. These figures are based on official government market valuations, but the actual market value is estimated to be about 10 times higher. Unofficial estimates suggest that there may be up to 5,000 individuals with net assets exceeding Rs. 1,000 crore, but SC/ST/BCs likely constitute less than 10% of this group. The World Inequality Lab's 2024 report reveals that India's current economic inequalities surpass even those during British rule. 40.1% of India's wealth is concentrated in the hands of just 1% of the upper caste population. 10% of the upper castes hold 58% of the nation's wealth, while the majority 50% of the population possesses only 15%. 88% of billionaires belong to upper castes, with no representation from Scheduled Castes and Tribes. This disparity has widened considerably in the last decade. Economists warn that if this trend continues, the lives of BCs, SCs, and STs will further deteriorate, potentially leading to social unrest.
(Table 1: Percentage of Billionaires in India and the Declining Percentage of OBCs)
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Government expenditures on BC welfare and development are merely symbolic. The following data clarifies this. Over the past ten years, the Central Government has spent the following amounts on SCs, STs, and BCs (in crores of rupees): (Table 2: Pre-matric, post-matric fellowships, etc. - Data missing in original text, source: Ministry of Social Justice annual report). This table clearly demonstrates that the allocation for BCs, who constitute 60% of the population, is negligible. Similarly, the Telangana State Government's allocations over the last decade are as follows (in crores of rupees): (Table 3 - Data missing in original text, source: State government budget books). These are merely allocations; actual spending is significantly lower.
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A review of the expenditure figures in the tables above reveals the extent of government concern for BCs, who comprise 60% of the population. In 2017, the state government established a corporation (MBC) for the Most Backward Castes. Over the past 8 years, Rs 3850 crores were sanctioned on paper, but only Rs 19.78 crores were actually spent (Table 4).
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At this rate of expenditure, BCs will not experience any significant progress for another thousand years. The root cause is the lack of adequate BC representation in legislative bodies and the absence of effective leadership to amplify their voices.
Conversely, governments controlled by upper and dominant castes implement numerous schemes benefiting their own communities. For instance, from April 14 to March 23, the Central government waived Rs 14.56 lakh crore in loans for industrialists (as stated by Minister of State for Finance Bhagwat Karad in Parliament on May 12, 2024). 95% of these beneficiaries are from upper castes. Reliance Communication's loans of Rs. 47,252 crore were waived to the tune of Rs. 46,797 crore, with only Rs. 455 crore repaid. However, only Rs. 15,021 crore was allocated for scholarships for 80 crore BC children. Banks are also reluctant to provide even small loans to SC, ST, and BC individuals. Ironically, 93% of top bank management positions are held by upper caste individuals. This explains the generous loan disbursements and waivers for upper castes, while BCs are denied access to credit.
Over the past 10 years, numerous concessions granted to the corporate sector by the central government, such as the abolition of wealth tax and the reduction of corporate tax in 2019, have disproportionately benefited wealthy upper castes, leading to a dramatic increase in their wealth. The rising percentage of direct taxes in revenue income and the corresponding decline in indirect taxes places a greater burden on the common taxpayer.
In our state, upper castes, leveraging their political influence, are acquiring valuable government lands at bargain prices under the guise of industrial and public service development, often allocating these lands to members of their own castes. In 1982, 30 acres were allocated to Pratap Reddy's Apollo Hospital for a mere Rs. 8,500 per acre, bypassing land ceiling laws. This corporate hospital has never provided free medical services to the poor. Similar allocations have been made to the film industry, studios, hospitals, various industries, and NGOs. These beneficiaries are now selling these lands for hundreds of crores. It is estimated that the current value of these allocated lands is around one lakh crore. All major contracts are awarded to them. The typical modus operandi involves inflating project estimates, reaping profits, purchasing land around Hyderabad with these profits, manipulating government land auction prices to inflate the value of their own land holdings, and ultimately becoming millionaires. Governments often provide insider information to their caste members about upcoming projects, enabling them to purchase land at low prices in advance. The subsequent appreciation in land value due to the projects is a common phenomenon.
For example:
The Cyberabad development significantly benefited the Kamma community.
The Outer Ring Road project greatly benefited the Reddy community.
The Regional Ring Road and Yadadri project immensely benefited the Velama community.
"Likewise, when it comes to the exploitation of natural resources like mines, sand, timber, etc., corporate hospitals, educational institutions, the film industry, real estate, electronic and print media, all these are theirs. The pharmaceutical industry is also theirs. That is why today, Hyderabad has seen an unparalleled increase in the number of wealthy individuals from the upper castes, reaching the third position in the country. In Hyderabad, BC communities are unable to even buy a single-bedroom apartment. There is no end to the greed of the upper castes and the plunder of government lands. That money is lavishly spent in elections, power is acquired, and then it is multiplied many times over. The budget spent on BCs is small, but the upper castes have earned much more by flouting the rules through extra-budgetary means. These are the ill effects of combining political power with caste favoritism.
In the past, Shudras and Ati-Shudras were suppressed by exploiting the Varna system. Today, they are being suppressed with the strength of power and the support of caste. Is there no liberation for them in this country? The central and state governments' budgets for the upliftment of BC people are merely nominal. For example, in the 2021-22 central budget, the Scheduled Castes component was Rs. 1,26,259 crores, and the Scheduled Tribes component was Rs. 76,256 crores, but there is no such component for OBCs, who constitute 60% of the population. The budget allocation is only Rs. 2,000 crores. The same is the case in the state government. Today, out of 80 crore BCs in the country, about 25 crore BCs are living in inhuman and miserable conditions.
BCs have already reached a point where they have to depend on ration cards, pensions, etc., for their livelihood. It is high time that BCs realize the injustices being done to them and agitate for political, social, and economic empowerment. They must understand that the solution to all their problems and their liberation from this exploitation lies in political power, and they must vote for their BC party or BC candidates. BCs must attain political power, otherwise, they will be left with only these meager livelihoods. By 2047, they must strengthen BC leadership; otherwise, the 'Developed India' will remain just a dream for the majority of people, the BCs, SCs, and STs.
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