Dr. B. R.

AMBEDKAR ON ECONOMIC ANALYSIS OF THE CASTE

Prof. Dr. P. S. Kamble
Department of Economics,
Shivaji University, Kolhapur
PIN; 416001, Maharashtra.
Email: psk_eco@unishivaji.ac.in

ABSTRACT:

There are number of institutions in the economy of any country. Taking into consideration
their duties and responsibilities being performed by them, they are classified into economic institutions,
political institutions, religious institutions, social institutions, legal institutions, cultural institutions, and
so and so forth. In traditional ideology of the thought, caste is a social institution. It has been originated
to perform social duties and responsibilities, and it has a strong religious base. Thus caste as a social
institution discharges both the social as well as religious functions. Nobody has looked at caste system
as an economic institution. Even nobody thought of caste system can be an economic institution, which
provides the framework of an economic system and performs the number of economic functions. . It can
perform the economic functions of the economic institutions like production, distribution, consumption,
allocation and utilization of the productive resources and distribution of the goods and services among
the people in the society as a whole. It is the Dr. B. R. Ambedkar, a unique personality in the world, who
had an innovative approach looking towards the caste system, that caste is not only a social institution,
but prominently it is an economic institution. Hence it performs the number of economic functions, and
it is therefore an economic organisation. It is therefore Dr. Ambedkar started with studying the origin,
mechanism and development of castes in India to the annihilation of the caste system in his very
commendable research work for the seminar and conference presidential address. He is of the opinion
that caste system in India is an economic institution, and more importantly it performs the number of
economic functions in the society , which are dominantly economically exploitative to the depressed and
backward communities like dalits in India. He has examined how caste system is an economic
institution, the economic functions it performs, its exploitation of the backward and deprived
communities in India, and more importantly how the annihilation of the caste system is possible. It is
against this over all background, the present paper endeavours to examine the economic analysis of the
caste system provided by Dr. B. R. Ambedkar in his book ‘Annihilation of Caste’, and also explores its
present relevance in India . The present study concludes that there is applicability of the economic
analysis of the caste in India even in the present context also.

KEY WORDS: Caste System, Economic Institution, Economic Analysis of Caste, Annihilation
of Caste, Origin of caste s , Development of Caste

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I) INTRODUCTION:
There are number of institutions in the economy of any country. Taking into
consideration their duties and responsibilities being performed by them, they are classified into
economic institutions, political institutions, religious institutions, social institutions, legal
institutions, cultural institutions, and so and so forth. In traditional ideology of the thought, caste is a
social institution. It has been originated to perform social duties and responsibilities, and it has a
strong religious base. Thus caste as a social institution discharges both the social as well as religious
functions. Nobody has looked at caste system as an economic institution. Even nobody thought of
caste system can be an economic institution, which provides the framework of an economic system
and performs the number of economic functions. . It can perform the economic functions of the
economic institutions like production, distribution, consumption, allocation and utilization of the
productive resources and distribution of the goods and services among the people in the society as a
whole. It is the Dr. B. R. Ambedkar, a unique personality in the world, who had an innovative
approach looking towards the caste system, that caste is not only a social institution, but prominently
it is an economic institution. Hence it performs the number of economic functions, and it is therefore
an economic organisation. It is therefore Dr. Ambedkar started with studying the origin, mechanism
and development of castes in India and ends with the annihilation of the caste system in his very
commendable research work for the seminar and conference presidential address. He is of the
opinion that caste system in India is an economic institution, and more importantly it performs the
number of economic functions in the society, which are dominantly economically exploitative to the
depressed and backward communities like dalits in India. He has examined how caste system is an
economic institution, the economic functions it performs, its exploitation of the backward and
deprived communities in India, and more importantly how the annihilation of the caste system is
possible. It is against this over all background, the present paper endeavours to examine the
economic analysis of the caste system provided by Dr. B. R. Ambedkar. The views of the Dr. B. R.
Ambedkar on origin and development of the castes in India , and economic analysis of the caste ,
we get in his very important books namely i) Castes in India , and ii) Annihilation of Caste.

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II) Dr. AMBEDKAR ON ORIGIN AND DEVELOPMENT OF CASTES IN INDIA:
The views of Dr. B.R. Ambedkar on the origin, mechanism and development of
castes in India that we get in his very important book titled “Castes in India: Their
Mechanism, Genesis and Development” published in 1916. Dr. Ambedkar very
systematically and scientifically analyses the origin and development of castes in India. He
begins with the concept of the caste. So as to explain the meaning of the term caste, he
discusses the various definitions of the castes and undertakes their critical evaluation also. He
gives the definition of the caste given by the Mr. Nesfield as, “ a class of the community
which disowns any connection with any other class and can neither intermarry nor eat nor
drink with any but persons of their own community”. Then he cites the definition presented
by the Risley as, “a caste is a collection of families or groups of families bearing a common
name with usually denotes or is associated with specific occupation, claiming common
descent from a mythical ancestor, human or divine, professing to follow the same
professional callings and are regarded by those who are competent to give an opinion as
forming a single homogeneous community”. The above mentioned definitions of the term
castes have been given by the foreign thinkers, Dr. Ambedkar was of the opinion that Indians
can understand the concept of the caste than the others, because he can have a lot of
experience due to its wide spread practice in India. It is against this background, he gives the
definition of the term caste given by the Indian thinker Dr. Ketkar. According to Dr. Ketkar
“caste is a social group having characteristics: i) membership is confined to those who are
born of members and includes all persons so born; ii) the members are forbidden by an
inexorable social law to marry outside the group”. According to Dr. Ambedkar to review
the definitions of the caste is of great importance for our purpose. It will be noticed that taken
individually the definitions of the three of the writers includes too much or too little: none is
complete or correct by itself and all have missed the central point in the mechanism of the
caste system. Their mistake lies in trying to define caste as an isolated unit by itself, and not
as a group within, and with definite relations of caste as a whole. Yet collectively all of them
are complementary to one another, each one emphasing what has been obscured in the other.
(Ambedkar, 1916, p7)
According to Dr. Ambedkar the critical evaluation of the various characteristics of
caste leave no doubt that prohibition; or rather the absence of intermarriage – endogamy, to

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be concise – is the only one that can be called the essence of caste when rightly understood.
But some may deny this on abstract anthropological grounds, for their exist endogamous
groups without giving rise to the problem of caste. In a general way this may be true , as
endogamous societies , culturally different , making their abode in localities more or less
removed , and having little to do with each other are a physical reality. Dr. Ambedkar draws
a conclusion that, Endogamy is an only characteristic that is peculiar to caste, and if we
succeed in showing how endogamy is maintained, we shall practically have proved the
genesis and also the mechanism of caste. Thus the super imposition of endogamy on
exogamy means the creation of caste. (Ambedkar, 1916, p 9)
According to Dr. Ambedkar, there are four means by which numerical disparity
between the two sexes is conveniently maintained are; burning the widow with her deceased
husband, compulsory widowhood , imposing celibacy on the widower and wedding him to a
girl not yet marriageable. They create and perpetuate endogamy, while caste and endogamy
is one and the same thing. Thus the existence of these means is identical with caste and caste
involves these means. This is the general mechanism of a caste in a system of castes. Caste in
India is very ancient institution and its mechanism is very complex than what discussed
above. Dr.Ambedkar argues that, complex though it be in its general working the Hindu
society, even to a superficial customs observer presents three singular uxorial customs,
namely: i) Sati or the burning of the widow on the funeral pyre of her deceased husband, ii)
Enforced widowhood by which a widow is not allowed to remarry, iii) Girl marriage. This
high flown and ingenious sophistry why these institutions were honored, but do not tell us
why they were practiced. According to Dr. Ambedkar, they were honoured because they
were practiced. Whether regarded as ends or as means , Sati enforced widowhood and girl
marriage are customs that were prominently intended to solve the problem of the surplus man
and surplus woman in a caste and to maintain its endogamy, and caste without endogamy is
fake. (Ambedkar, 1916, pp13-14)
While discussing the development and spread of the castes in India Dr. Ambedkar
states that, Manu is the law giver of India. Manu did not give the law of caste, because caste
existed long before Manu. He was an upholder of it. Thus the great man theory does not help
in solving the spread of castes in India. The Hindu society was composed of classes
Brahmins, Kshatariya, Vaishya and Shudra. The sub division of a society is quite natural. But

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 the unnatural thing about the subdivisions is that they have lost the open-door character of
the class system and have become self enclosed units called castes. The question is: were
they compelled to close their doors and become endogamous or did they close them of their
own accord? There is a double line of answer: Some closed the door: Others found it closed
against them. The one is a psychological interpretation and the other is mechanistic, but they
are complementary and both are necessary to explain the phenomena of caste formation in its
entirety. (Ambedkar, 1916, pp17-18)

III) ECONOMIC ANALYSIS OF THE CASTE BY Dr. B. R. AMBEDKAR:

It is the Dr. B. R. Ambedkar a unique person who has given an economic analysis
of the caste. Hence he is the economist who has provided us the Economics of the Caste, and
is a peculiarity of his economic thoughts and consequently a contribution to the economic
literature and economic theory. It is therefore the credit to originate and develop the
Economics of Caste exclusively goes to the Dr. B.R. Ambedkar. It is therefore very much
essential to study economic thoughts of Dr. Ambedkar on caste system, which are
prominently concerning the Indian economy. The economic analysis of the caste system has
been provided by Dr. B. R. Ambedkar in his very research oriented, realistic and practical
utility having most famous as well as a debatable book titled “Annihilation of Caste”
published in 1936.
According to Dr. B. R. Ambedkar Caste system is an economic institution, because
it performs the number economic functions especially in the country like India. The caste as
an institution has the number aspects, whose explanation and analysis is of vital importance.
Dr. Ambedkar was of the opinion that caste system in India is defended on economic
grounds. The economic interpretation of the history of India could not be given by the
socialist. It is because in the context of India along with economic aspects its social aspects
are also very much necessary to take in to consideration. We cannot neglect the problems that
arise in India due to social order; it is therefore socialists are not in a position to give
economic interpretation of the history of India. Only property cannot be a source of power. It
is therefore economic reform by equalization of property must have precedence over every
other kind of reform. (Ambedkar, 1936, p 46) The division of labour is an important and
famous principle in economic theory, which states that the division of the production work

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into small pieces enhances productivity and efficiency of the productive activities, sectors,
and the economy, and enables to derive the economies of large scale production. Caste
system as an economic institution is supported on the ground that it enables the division of
the labour in the productive activities and provides all the advantages, especially of the
economies of scale. But according to Dr. Ambedkar caste does not provide the facility of the
division of the labour, on the contrary, it is division of the labourers. And division of the
labourers can not promote production, productivity and efficiency of the productive activities
and productive sectors as well as of the economy as a whole. It is therefore, it cannot provide
the economies of the large scale production. Therefore caste system cannot be justified on the
ground of the division of labour and its economic benefits. Caste system provides the graded
divisions of the labours and in no other country is the division of labour accompanied by
their gradation of labours. Besides this, the note worthy feature of the caste as an economic
institution that provides a mechanism of the division of the labour is that, it is unnatural
division of the labours into water tight compartments, and nobody can leave the given
compartment of the work. More importantly, this division of labour is not spontaneous and
not based on natural aptitudes. Social and individual efficiency requires us to develop the
capacity of an individual to the point of competency to choose and to make his own career.
This principle is violated in the caste system in so far as it involves an attempt to appoint
tasks to individuals in advance , selected not on the basis of trained original capacities, but
on that of the social status of the parents. (Ambedkar, 1936, p 47) The caste system in India
also results in stratification of the occupations, which leads to static occupations and thereby
the static economic activities. The productive sectors like industry should always be
dynamic, in absence of which their development is not possible. It is the obstacle in the
development of the economic activities as a consequence of which employment is not
generated in the economy that contributes to stagnant economic growth and increase in the
intensity of the problem of unemployment. Thus caste system creates a conducive
environment for the fall in employment generation, and there by intensifies the problem of
the unemployment in the economy. Individuals should have a freedom of occupation,
otherwise that occupational development in the economy is badly affected and also badly
affects economic development of the economy, standard of living of the people, and more
importantly, the survival and growth of the occupations is affected very unfavourably

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 because of caste system only. It is therefore Dr. Ambedkar says, Caste system is not a
division based on choice, individual sentiment, individual preference has no place in it.
Therefore, there are many occupations in India which on account of the fact that they are
regarded as degraded by the Hindus provoke those who are engaged in them to aversion.
(Ambedkar, 1936, p 48) When people enter into occupations without any interest and choice
then they cannot work there efficiently. Here we cannot expect efficient working of the
occupations as well as all those engaged in these occupations. It is therefore Dr. Ambedkar
argues, what efficiency can there be in a system under which neither men’s hearts nor their
minds are in their work? As an economic organization caste is therefore a harmful institution,
in as much as, it involves the subordination of many natural powers and inclinations to the
exigencies of social rules. The caste system as an economic organization restricts the
mobility of the labours in the economy. The labours become totally immobile across the
occupations as well as across the places in the economy because of the caste system. This can
have the number of evil consequences on the efficiency of the workers, productive activities,
productive sectors and the economy as a whole.

IV) RELEVANCE OF ECONOMIC ANALYSIS OF THE CASTE IN PRESENT INDIA :

It is a fact that the caste system is in existence in India at present in the 21st century
also. Just its nature and modus operandi has been changed a lot. When there is existence of
the caste system in India, then no doubt its economic dimension of the working is observed
in Indian economy today also, is a fact. It is therefore of vital importance to explore the
relevance of the economic analysis of the caste system given by the Dr. B. R. Ambedkar with
reference to present India.
Agriculture is the main occupation of India today also, on the ground that it is the
source of the employment and livelihood for the majority of the people in India, especially
for the socially and economically backward communities of our country. For example, about
48% people from the SC category are agricultural labours and they have only 28.17 percent
cultivators. It is also observed that industrial activities and business activities have been
concentrated in the hands of the few households and people especially business community
like Tata, Ambani ,Mittal, Birla, etc. Only exceptionally, we see the business and industrial
activities that have been started by the backward castes in India. About 77% SC families

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have been engaged in the primary sector of the Indian economy, is a thing of concern. Dr.
Ambedkar was of the opinion that political power is a master key by which you can open
each and every lock. In this background if we try to examine the political representation in
India, it becomes clear that the rich people and the upper caste people get political
representation to the greater extent possible. Besides this, opportunity of ministership at both
the state and union government level is given to the upper caste and economically sound
people and families only. Yes the political representation is given to the backward
communities as per reservation norms and rules only. We cannot get an example of political
representation is given to the dalits, backward castes on the seats for open constituencies. It is
a fact that the people from social and economic backward backgrounds who have got
opportunities on the higher and important posts like IPS, IAS, IFS, Judges and others is rare
and a very few. Today also we have belief that social and economic backward castes cannot
be considered for the open posts even though they are qualified, qualitative and suitable. On
the contrary, the class fourth and inferior status jobs are provided to the backward
communities. Likewise, in the informal employment the prominent share has been given to
the socially and economically backward communities in India. The reservation in
employment for the backward communities as an affirmative action has been provided in the
Indian constitution since its implementation, but it is not being implemented honestly and
rigorously, but endeavoured to avoid the reservation on the number of counts. In the private
sector no social and economic backward communities are considered for the key and
important posts. It is also observed that in the emerging field like film industry no entry is got
to the backward communities, is a fact. Same is the case of the cooperative sector of the
economy; we do not see backward communities as successful cooperators in the country like
us. The literacy among the SCs & STs is increasing (54.7 & 47.1 2001), but at the same time
their dropout rates are significantly higher (Elementary education 57% & 66%) is a thing of
concern. The incidence of both the unemployment and poverty is higher on the backward
communities in India, is a thing of concern. The incidence of poverty for the SCs and STs
was 38 % and 44 % in 2004-05, which stood at 30% and 33% respectively 2009-10. And
Orissa, Maharashtra, Madhya Pradesh, Uttarakhand, Jharkahand, Bihar, Uttar Pradesh are the
major states in which backward castes are suffering from the higher incidence of the poverty.
The trend of increasing concentration of wealth and assets is taking place in the hands of a

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 few households and contributing to the growing economic inequalities in India, as a result the
Gini coefficient has been rose from 0.35 in 1993-94 to 0.37 in 2009-10. The increasing
atrocities on dalits is an indicator of growing casteism in India, such cases has increased from
14318 in 1981 to 39225 in 2008, and in 2010, 3 dalit women are raped daily, 2 dalits are
murdered and 11 dalits are beaten daily. The foregoing explanation is a sufficient proof of the
relevance of the economic analysis of the caste system in present India given by Dr. B. R.
Ambedkar.

V) CONCLUDING REMARKS:
The Caste system is no doubt an economic institution as stated by the Dr. B.R.
Ambedkar in his very famous book ‘Annihilation of Caste’ and before that he has given a
very systematic and scientific analysis of the origin and growth of the caste system in India in
his very important book ‘Castes in India’, are very important and relevant contributions of
Dr. Ambedkar in literature. The present paper is an honest attempt to provide the economic
analysis of the caste system as an economic institution given by Dr. Ambedkar especially in
the first book mentioned above. Likewise the paper also presents the relevance of the
economic analysis of the caste as an economic organization in the context of the present
India. This paper adequately proves that Dr. Ambedkar’s economic analysis of the caste
system is very much important today also, and more importantly it has lot of utility and
significance in the present Indian society. But the present study is solely based on the
secondary sources of the data, and it did not consider the primary sources of data and
information at all. The study should also have the primary data support, which increases the
scope, reliability, application and importance of the study. It is therefore there is very large
scope in undertaking the number of studies on the present relevance of the economic analysis
of the caste based on the primary data and information in the context of India, which is
thinking of inclusive growth, and economic supreme power in the World. This is possible
through the further research in the form of the number of research papers, research projects,
dissertations and theses as well on this important topic.

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VI) REFERENCES :
1) Ambedkar, B. R. (1916), Castes in India: Their Mechanism. Genesis and Development, in Dr.
Babasaheb Ambedkar Writings and Speeches, Volume No 1, Government of Maharashtra
2) Ambedkar, B. R. ( 1936), Annihilation of Caste , in Dr. Babasaheb Ambedkar Writings and
Speeches, Volume No 1, Government of Maharashtra
3) Government of India (20012), Economic Survey, Government of India, New Delhi.
4) Mishra & Puri ( 2013), Indian Economy, Himalaya Publishing House, Mumbai.
5) Datta & Mahajan ( 2013), Indian Economy, S. Chand and Company, New Delhi
6) Bahaduri, Amit ( 2008) , Growth and Employment in the Era of Globalisation: Some Lessons
from the Indian Experience, ILO Asia- Pacific Working Paper Series , Sub Regional Office,
New Delhi.
7) Kannan and Ravindran ( 2009) , Growth and Employment: A Quarter Century of Jobless
Growth in India’s Organised Manufacturing, A Research Paper in march 7, 2009 vol xliv no 10,
EPW Economic & Political Weekly, Mumbai .
8) Sharma, A. N. (2006), Flexibility, Employment and Labour Market Reforms in India, Economic
and Political Weekly, May 27, 2006.
9) Thorat, Attewell & Rizvi (2009) Urban Labour Market Discrimination, Working Paper Series,
Volume 3 , Number 1, Indian Institutes Dalit Studies, New Delhi
10) Jodhka. S. S ( 2010) , Dalits in Business: Self Employed SCs in North West India, Working
Paper Series, Volume 4 , Number 2, Indian Institutes Dalit Studies, New Delhi
11) Thorat, S. K. ( 2010), Inclusive Growth of India, IEA Conference Presidential Address ,
Punjabi Unversity, Chandigad, Haryana

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