The Constitution of India is the supreme law of the country.

It lays down the framework defining

the fundamental political principles, structure, procedures, powers, and duties of government
institutions, and it sets out the fundamental rights, directive principles, and duties of citizens. It is
the world's longest written constitution.

Main Points and Features

●​ Preamble: The Constitution begins with a Preamble that declares India to be a
Sovereign, Socialist, Secular, Democratic Republic. It also aims to secure justice,
liberty, equality, and fraternity for all its citizens.
●​ Lengthiest Written Constitution: Originally, it had 395 Articles in 22 Parts and 8
Schedules. Today, due to amendments, it has around 470 Articles in 25 Parts and 12
Schedules.
●​ Parliamentary Form of Government: India has a parliamentary system where the
executive is responsible to the legislature (Parliament). The President is the constitutional
head, but the real executive power lies with the Council of Ministers, led by the Prime
Minister.
●​ Federal System with Unitary Features: The Constitution establishes a federal structure
with a clear division of powers between the central government and state governments.
However, it also includes unitary features, such as a strong central government, a single
constitution, and an integrated judiciary, making it 'quasi-federal' in nature.
●​ Fundamental Rights: The Constitution guarantees six fundamental rights to all citizens,
including the right to equality, freedom, and the right to constitutional remedies. These
rights are enforceable in a court of law.
●​ Directive Principles of State Policy (DPSP): These are guidelines for the government to
be considered while making laws. They aim to establish a welfare state but are not legally
enforceable.
●​ Independent Judiciary: India has an independent and integrated judiciary, with the
Supreme Court at the apex. The judiciary acts as the guardian of the Constitution.
●​ Universal Adult Franchise: The Constitution grants every citizen aged 18 and above the
right to vote, regardless of their caste, gender, religion, or economic status.
●​ Single Citizenship: The Constitution provides for a single citizenship for all of India,
meaning all citizens enjoy the same rights and privileges across the country.

Key Dates
●​ December 9, 1946: The Constituent Assembly, tasked with drafting the Constitution,
held its first meeting. Dr. Sachchidananda Sinha was the interim president, and later, Dr.
Rajendra Prasad was elected as the permanent president.
●​ August 29, 1947: The Drafting Committee, chaired by Dr. B.R. Ambedkar, was formed
to prepare a draft of the Constitution. He is widely considered the chief architect of the
Indian Constitution.
●​ November 26, 1949: The Constituent Assembly adopted the Constitution. This day is
now celebrated as Constitution Day (Samvidhan Divas).
●​ January 26, 1950: The Constitution came into full force, and India officially became a
Republic. This day is celebrated annually as Republic Day. The date was chosen to
commemorate the declaration of Purna Swaraj (complete self-rule) by the Indian National
Congress in 1930.
The Indian Constitution has been historically viewed as a document with significant economic
implications. The framers of the Constitution didn't just create a political framework; they also
laid the groundwork for a mixed economy and a welfare state, aiming to address the
deep-seated poverty, inequality, and economic backwardness inherited from British colonial rule.

Key Economic Principles Embedded in the Constitution

The historical understanding of the Constitution as an economic document is primarily rooted in
its core principles and provisions.
●​ Directive Principles of State Policy (DPSP): This is arguably the most explicit section of
the Constitution with economic goals. The DPSPs are a set of guidelines for the
government to follow when enacting laws. Articles like Article 38 and Article 39 direct the
state to secure a social order for the promotion of the welfare of the people by minimizing
inequalities in income, status, and opportunities. The state is also directed to ensure that
the ownership and control of the material resources of the community are distributed as
best to serve the common good.
●​ A Mixed Economy: The Constituent Assembly debates reveal a consensus on a mixed
economic model, balancing private enterprise with public sector control. This was a direct
rejection of both pure capitalism and doctrinaire socialism. The Constitution provided for
the right to property (initially a fundamental right, later removed) but also empowered the
state to acquire private property for public purpose, a provision that enabled land reforms
and nationalization of key industries.
●​ Centralized Economic Control: The Constitution gave the central government
significant power over economic matters. The Union List (Seventh Schedule) includes
crucial subjects like banking, currency, foreign trade, and interstate commerce. This was
intended to create a single, unified economic market and prevent the kind of internal trade
barriers and economic fragmentation that had existed under British rule and the princely
states.
●​ Fiscal Federalism: The Constitution establishes a system of fiscal federalism, defining
the taxing powers of the central and state governments. The Finance Commission,
established under Article 280, ensures the equitable distribution of revenue between the
center and the states, reflecting an understanding that economic development required a
coordinated and fair approach.

Historical Context and Evolution

The economic dimension of the Constitution is a direct response to the colonial legacy and the
aspirations of the nationalist movement.
●​ Addressing Colonial Exploitation: The British colonial administration had systematically
de-industrialized India and drained its wealth. The framers of the Constitution sought to
reverse this trend by empowering the state to play an active role in economic
development, industrialization, and resource allocation.
●​ The Nehruvian Model: The Constitution's economic philosophy closely aligns with the
vision of India's first Prime Minister, Jawaharlal Nehru, who championed a planned,
state-led development model. The establishment of the Planning Commission, while not
explicitly mandated by the Constitution, was a logical extension of its socialist and
welfare-oriented principles.
●​ Judicial Interpretation: The judiciary has played a crucial role in shaping the
 Constitution's economic meaning. Early Supreme Court judgments often sided with the
right to property, leading to several constitutional amendments to enable land reforms.
The interpretation of rights like the "right to livelihood" has also expanded the state's
welfare obligations.
●​ Liberalization and Beyond: Since the economic reforms of 1991, the historical
understanding of the Constitution has evolved. While the core principles of a welfare state
remain, the emphasis has shifted towards a more market-oriented economy. However, the
Constitution's provisions on social justice and economic equality continue to be invoked in
debates about privatization, foreign investment, and the role of the state in the economy.
The Preamble is the introductory statement to the Constitution of India, setting out its guiding
philosophy, principles, and objectives. It's a summary of the core ideals that the nation aspires
to achieve and serves as a moral compass for interpreting the Constitution. It was adopted on
November 26, 1949, and is based on the Objectives Resolution moved by Jawaharlal Nehru
in the Constituent Assembly.

Core Ideals of the Preamble

The Preamble can be understood by breaking down its key components:
●​ Source of Authority: The Preamble begins with "WE, THE PEOPLE OF INDIA," which
signifies that the Constitution's authority comes directly from the people of India. It
emphasizes that the government is of the people, by the people, and for the people.
●​ Nature of the Indian State: The Preamble declares India to be a Sovereign, Socialist,
Secular, Democratic, Republic.
○​ Sovereign: India is an independent country, free from any external control. It has
supreme power to govern itself.
○​ Socialist: The state aims to achieve social and economic equality for all citizens,
promoting a mixed economy where both the public and private sectors coexist. This
was added by the 42nd Amendment Act of 1976.
○​ Secular: The state has no official religion and treats all religions equally. It allows
citizens the freedom to practice, profess, and propagate any religion. This was also
added by the 42nd Amendment Act.
○​ Democratic: The government is elected by the people through a system of "one
person, one vote," ensuring that power rests with the citizens.
○​ Republic: The head of the state (the President) is elected and not a hereditary
ruler, ensuring that all public offices are open to every citizen.
●​ Objectives of the Constitution: The Preamble outlines the main goals for all citizens:
○​ Justice: Social, economic, and political justice is promised to all, ensuring fair
treatment and the absence of exploitation.
○​ Liberty: Citizens are guaranteed freedom of thought, expression, belief, faith, and
worship.
○​ Equality: All citizens have equal status and opportunity, without discrimination.
○​ Fraternity: A sense of brotherhood and oneness is promoted to ensure the dignity
of the individual and the unity and integrity of the nation.

Significance and Judicial Interpretation

The Preamble is not a source of power for the legislature, nor can it be enforced in a court of
law. However, it is an essential part of the Constitution and holds great significance. It serves as
a guiding light for the interpretation of the Constitution's provisions. In the landmark
Kesavananda Bharati case (1973), the Supreme Court declared that the Preamble is an
integral part of the Constitution and can be amended, provided the "basic structure" of the
Constitution is not altered. This ruling solidified its importance as a fundamental document for
understanding the spirit and intent of the Indian Constitution.
The relationship between judicial power and economic policy in India has evolved significantly,
from the early challenges to land reforms to the recent decision on cryptocurrency. This journey
reflects a constant negotiation between legislative power, the right to property and trade, and
the concept of public interest.

The Land Reforms Era (1950s-1970s)

Immediately after independence, the Indian government sought to implement socialist and
egalitarian policies, primarily through land reforms aimed at abolishing the feudal Zamindari
system. These reforms, however, were met with strong opposition from landowners who
challenged the laws in court, arguing they violated their fundamental right to property under
Article 19(1)(f) and Article 31 of the Constitution.
●​ Initial Confrontations: The judiciary, in early cases like State of Bihar v. Kameshwar
Singh (1952), upheld the right to compensation for land acquisition. This created a hurdle
for the government's reform agenda, as it was financially unviable to compensate every
landowner.
●​ Constitutional Amendments: To circumvent these judicial roadblocks, the Parliament
passed a series of constitutional amendments. The 1st Amendment (1951) added the
Ninth Schedule to protect land reform laws from judicial review. Subsequent
amendments, including the 4th Amendment (1955), further limited judicial scrutiny of
land acquisition laws. These amendments reflected the government's view that judicial
review was impeding its progressive social and economic policies.
●​ The "Basic Structure" Doctrine: The culmination of this conflict was the landmark
Kesavananda Bharati v. State of Kerala (1973) case. While this case originated from
land reform laws in Kerala, the Supreme Court's ruling went much further. It established
the "Basic Structure Doctrine," holding that while Parliament has the power to amend
the Constitution, it cannot alter its fundamental or "basic" features. This doctrine put a
definitive check on legislative power and marked a turning point in the court's role as the
guardian of the Constitution.

From Land to Liberalization and Beyond

Following the initial period of land reforms, the judiciary's approach to economic policy evolved.
The courts began to adopt a more nuanced stance, balancing the state's power to regulate with
the individual's right to carry on a profession or trade. This shift became particularly relevant in
the post-1991 era of economic liberalization, where the state's role in the economy changed.
●​ Judicial Review and Proportionality: The judiciary began using the principle of
"proportionality" to review economic policies. This principle requires that any
government action restricting a fundamental right must be proportionate to the objective it
seeks to achieve. The restriction must be necessary, and there should be no less
restrictive alternative available.

The RBI's Bitcoin Ban and Its Aftermath

This journey from land reforms to cryptocurrency culminated in the Internet and Mobile
Association of India (IAMAI) v. Reserve Bank of India (2020) case.
●​ The RBI's Ban: In 2018, the RBI issued a circular prohibiting all entities regulated by it
(banks and financial institutions) from providing services to anyone dealing with or settling
 in cryptocurrencies. This measure effectively banned the crypto-currency industry in India.
The RBI argued that the ban was necessary to protect consumers and the financial
system from the risks associated with virtual currencies, such as money laundering and
volatility.
●​ The Supreme Court's Verdict: The Supreme Court, however, struck down the RBI's ban.
The court's judgment was a clear application of the proportionality principle. It held that
while the RBI had the power to regulate virtual currencies, the complete ban was an
"excessive" and "disproportionate" measure. The court noted that the RBI had failed
to demonstrate any actual harm caused by cryptocurrency trading to the regulated
entities. The court also observed that since cryptocurrencies were not explicitly banned by
law, a complete prohibition on a legitimate trade was a violation of the right to carry on
any occupation, trade, or business guaranteed under Article 19(1)(g) of the
Constitution.
This judgment demonstrated a significant shift in judicial attitude. Unlike the land reform era
where the judiciary was often seen as an obstacle to economic policy, the court in the bitcoin
case acted as a protector of an individual's right to trade, invalidating a government action that it
deemed arbitrary and disproportionate.
The economic history of post-colonial India is deeply intertwined with its constitutional history.
The Constitution, rather than being a static political text, has been a living document that has
been amended and reinterpreted to address the evolving economic challenges of the nation.
These moments are primarily marked by the government's attempts to implement socialist and
welfare policies, which often clashed with the judiciary's interpretation of fundamental rights.

1. Land Reforms and the First Amendment (1951)

●​ Context: After independence, the new government prioritized land reforms to dismantle
the feudal Zamindari system, which was seen as a relic of colonial exploitation and a
major source of rural inequality.
●​ Constitutional Clash: Land acquisition laws were challenged by landowners who argued
that they violated their fundamental right to property under Article 31. The judiciary
initially sided with the landowners, stalling the reforms.
●​ Response: In a pivotal move, the government passed the First Constitutional
Amendment Act in 1951. This amendment added Article 31A and 31B, which protected
laws related to agrarian reform from judicial review. It also introduced the Ninth
Schedule, a list of laws that could not be challenged in court on the grounds of violating
fundamental rights. This marked the first major instance where the Parliament used its
amending power to assert its authority over economic policy.

2. The Bank Nationalization Case (1970)

●​ Context: In 1969, Indira Gandhi's government nationalized 14 major private banks,
arguing that it was necessary to align banking with the government's socialist objectives
and to ensure credit flowed to neglected sectors like agriculture and small industries.
●​ Constitutional Clash: The bank nationalization was challenged in the Supreme Court in
R.C. Cooper v. Union of India. The court held that the law was unconstitutional, not
because the government lacked the power to nationalize, but because the law provided
for an arbitrary and discriminatory compensation formula that violated the right to equality
and property.
●​ Response: This case prompted the 25th Amendment Act (1971), which replaced the
word "compensation" in Article 31 with "amount," effectively limiting the judiciary's power
to review the adequacy of compensation paid for acquired property. This amendment was
a direct attempt to assert the state's power to implement socialist policies without judicial
interference on grounds of "adequate" compensation.

3. The 42nd Amendment and the "Basic Structure" Doctrine (1973)

●​ Context: The ongoing conflicts between Parliament and the judiciary over economic and
social policies led to a full-blown constitutional crisis.
●​ Constitutional Clash: The Kesavananda Bharati v. State of Kerala (1973) case
centered on the extent of Parliament's power to amend the Constitution, including the
fundamental rights. The government argued for a complete and unlimited power to
amend, which it believed was necessary to achieve socio-economic goals.
●​ Resolution: The Supreme Court, in a landmark judgment, established the "Basic
Structure" doctrine. While it upheld Parliament's power to amend the Constitution, it
held that this power was not unlimited and could not be used to destroy the "basic
 structure" of the Constitution, which includes principles like democracy, secularism, and
judicial review. This judgment fundamentally rebalanced the power between the
legislature and the judiciary, ensuring that economic policy could not override the
foundational principles of the Constitution.

4. Economic Liberalization and the RBI's Bitcoin Ban (2020)

●​ Context: The economic reforms of 1991 shifted India from a state-led, socialist economy
to a more liberal, market-oriented one. The judiciary's role also evolved, moving from a
check on the right to property to a protector of the right to trade and livelihood.
●​ Constitutional Clash: In 2018, the Reserve Bank of India (RBI) effectively banned
cryptocurrencies, citing concerns over financial stability and consumer protection. This
was challenged by the crypto industry as a violation of their right to trade under Article
19(1)(g).
●​ Response: The Supreme Court in Internet and Mobile Association of India v. RBI
(2020) struck down the ban, applying the principle of proportionality. The court found
that while the RBI's objective was valid, the measure of a complete ban was
disproportionate, as it had not been proven that cryptocurrencies were causing any actual
harm to the financial system. This case exemplified the modern judiciary's role as a check
on arbitrary state action, ensuring that economic regulations are reasonable and do not
unduly restrict individual freedoms.
Constitutional design refers to the process of creating a constitution, which is the foundational
document of a state. It involves establishing the structure of the government, defining the
relationship between different branches of power, and outlining the rights and duties of citizens.
The design process is not just about drafting a legal text; it's a political act that reflects a
society's values, historical experiences, and aspirations for the future.

Key Elements of Constitutional Design

●​ Form of Government: This is a fundamental choice in constitutional design. A country
might choose a republican form, where the head of state is elected (e.g., India, USA), or
a monarchy, where the head of state is hereditary (e.g., United Kingdom). Similarly, a
state can be a democracy (governed by the people) or an autocracy (governed by a
single person).
●​ Separation of Powers: This principle divides governmental power among three distinct
branches:
○​ Legislature: The body that makes laws.
○​ Executive: The branch that implements and enforces laws.
○​ Judiciary: The system of courts that interprets laws and settles disputes. This
design is intended to prevent the concentration of power in one branch and ensure
a system of checks and balances.
●​ Federalism vs. Unitary System: A constitution must decide how power is distributed
between the central government and regional governments.
○​ Federalism: Divides power between a central authority and constituent units (e.g.,
states or provinces), as seen in the United States and India.
○​ Unitary System: All power is concentrated in the central government, though it
may delegate some powers to local bodies (e.g., United Kingdom, France).
●​ Fundamental Rights and Duties: Most modern constitutions include a chapter on
fundamental rights, which are protected from state infringement. These rights often
include freedom of speech, religion, and assembly. Constitutions may also define the
fundamental duties of citizens toward the state and society.

The Indian Experience

The Indian Constitution is a prime example of a complex and detailed constitutional design. Its
framers, led by Dr. B.R. Ambedkar, borrowed ideas from various constitutions around the world
while adapting them to India's unique socio-economic context. Key features of India's
constitutional design include:
●​ Parliamentary System: India adopted a parliamentary form of government, where the
executive is responsible to the legislature.
●​ Quasi-Federal Structure: The Indian Constitution is described as "quasi-federal"
because it combines elements of both a federal and a unitary system, with a strong
central government.
●​ Directive Principles of State Policy (DPSP): This unique feature provides a set of
non-enforceable guidelines for the government to promote social and economic welfare,
reflecting the state's commitment to social justice.
●​ Fundamental Rights and the "Basic Structure" Doctrine: The inclusion of fundamental
rights and the subsequent judicial evolution of the "basic structure" doctrine ensure that
the core principles of the Constitution cannot be altered, preserving its foundational
Legal regulation and economic justice are deeply intertwined, with law serving as a crucial tool
for shaping economic outcomes and addressing inequality. Economic justice is the principle that
the economy should be fair, equitable, and provide opportunities for all, regardless of race,
gender, or social status. Legal regulations, through various mechanisms, are designed to create
a framework that can help achieve these goals.

How Law Promotes Economic Justice

●​ Protecting Fundamental Rights: Constitutions and laws establish fundamental rights
that have direct economic implications. The right to equality ensures that individuals are
not discriminated against in employment, housing, or access to credit. Legal provisions for
the right to property (though often a source of conflict) and the right to trade provide a
stable environment for economic activity while also allowing for state intervention for
public welfare.
●​ Welfare and Distributive Policies: Laws are essential for implementing policies that
redistribute wealth and provide a social safety net. Examples include progressive taxation,
where higher earners are taxed at a higher rate, and the revenue is used to fund public
services like education, healthcare, and infrastructure. Legislation on minimum wages,
social security, and unemployment benefits are also key to ensuring a basic standard of
living.
●​ Regulating Markets and Preventing Exploitation: Without legal regulation, markets can
lead to monopolies, exploitation of workers, and consumer harm. Competition laws
prevent anti-competitive practices and promote fair trade. Labor laws protect workers'
rights, ensure fair wages, and provide safe working conditions. Consumer protection laws
safeguard individuals from deceptive business practices and unsafe products.
●​ Affirmative Action and Equal Opportunity: Legal frameworks for affirmative action (or
positive discrimination) aim to correct historical injustices and provide opportunities for
marginalized communities. This includes laws that mandate reservations in education and
government jobs for backward classes, thereby promoting economic inclusion and
reducing systemic inequality.

Constitutional Provisions for Economic Justice

Many countries embed the principles of economic justice directly into their constitutions,
providing a legal basis for social and economic reforms.
●​ In India, the Preamble explicitly aims to secure "Justice—social, economic and political"
for all citizens. The Directive Principles of State Policy (DPSP) in Part IV of the
Constitution are particularly significant. Articles like Article 38 and Article 39 direct the
state to ensure that the distribution of material resources serves the common good, that
there is equal pay for equal work for both men and women, and that the state minimizes
income inequalities.
●​ The legal system is also crucial for ensuring access to justice. Article 39A of the Indian
Constitution, for example, directs the state to provide free legal aid to ensure that justice
is not denied to any citizen due to economic or other disabilities.
In conclusion, legal regulation is not a mere formality in economic affairs; it's a fundamental
instrument for achieving economic justice. It provides the structure, rules, and protections
necessary to ensure that economic growth is inclusive and that the benefits of the economy are
shared fairly across all sections of society.