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Article 39(c) directs the State to prevent concentration of wealth and means of production to common detriment. Which policy approach BEST aligns with this directive?
- Unregulated free market capitalism with minimal state intervention
- Progressive taxation, antitrust regulation, and social welfare measures to reduce inequalities
- Complete state ownership of all means of production
- Privatization of all public assets to enhance efficiency
Answer: Progressive taxation, antitrust regulation, and social welfare measures to reduce inequalities
Article 39(c) prevention of wealth concentration: (a) Text: State shall direct policy towards securing that operation of economic system does not result in concentration of wealth and means of production to common detriment, (b) Rationale: (i) Social justice: Excessive inequality undermines social cohesion, democratic participation, human dignity, (ii) Economic stability: Extreme concentration can lead to market failures, crises, social unrest; balanced distribution promotes sustainable growth, (iii) Democratic values: Concentrated wealth can distort political processes; preventing concentration protects democratic integrity, (c) Policy alignment: (i) Progressive taxation: Income tax slabs, wealth tax proposals, GST design can reduce inequalities, fund public goods, (ii) Antitrust regulation: Competition law prevents monopolies, promotes fair markets, consumer welfare, (iii) Social welfare: MGNREGA, NFSA, PMAY provide safety nets, reduce poverty-induced inequality, (d) Contrast with other options: (i) Unregulated capitalism: Risks wealth concentration, market failures; contradicts Article 39(c) preventive mandate, (ii) Complete state ownership: Marxist approach; not India's democratic socialist model which balances public, private sectors, (iii) Privatization: Can enhance efficiency but risks concentration if not regulated; Article 39(c) requires preventive measures regardless of ownership model, (e) Applications: (i) Digital economy: Antitrust action against tech giants, data governance rules prevent digital wealth concentration, (ii) Climate finance: Just transition policies ensure climate action benefits vulnerable communities, not just affluent, (iii) Global cooperation: International tax reforms, trade rules can address transnational wealth concentration, (f) Illustrates calibrated political economy: Article 39(c) operationalized through progressive taxation, regulation, welfare; balance between market efficiency, social justice, democratic integrity essential for realizing constitutional vision of inclusive, sustainable economy.