THE ASIAN INDEPENDENT UK
Bal Ram Sampla
Geopolitics
India is currently one of the fastest-growing economies in the world, with its financial output (GDP) growing by at least 6% every single year. New roads are being built, cities are expanding, and modern technology is everywhere. However, beneath this glittering surface lies a deep, ancient social divide known as the caste system. At the very bottom of this hierarchy are the Dalits, who make up about 16.6% of the population.
While India’s booming economy has brought progress, the benefits of this wealth have not reached everyone equally. The capitalist ‘ trickle down’ theory has not worked for those at the bottom. For Dalits, the journey toward economic freedom remains blocked by centuries-old social barriers.
Basic Survival Has Improved
On the positive side, India’s economic growth has helped reduce extreme poverty. The government has used its wealth to fund massive welfare programs, giving millions of poor families access to subsidized housing, electricity, clean water, and direct cash transfers into their bank accounts.
Today, fewer people are facing starvation than in previous generations. In terms of basic human survival, the economic boom has provided a vital safety net.
The Trap of Informal Labor
However, surviving is not the same as thriving. The high-paying jobs created by India’s modern economy, like those in technology, finance, and major corporations, require top-tier education.
Unfortunately, the vast majority of Dalits are trapped in the “informal economy.” This means they work temporary, low-paying jobs without contracts or benefits.
In rural areas, most Dalits do not own the land they live on; less than 3% of Dalit households own land, compared to a much higher national average. Without land, they must rely on doing heavy manual labor or working on farms owned by wealthier, higher-caste families.
Furthermore, the most dangerous and socially stigmatized jobs, such as cleaning sewers and manual sanitation work, are still almost exclusively forced upon Dalits due to historical caste expectations.
Business Obstacles and a Lack of Connections
India is currently celebrating a major startup and business culture. Yet, when Dalits try to start their own businesses, they face a steep uphill battle. To grow a business, an entrepreneur needs two main things: loans from banks (capital) and business connections (social networks).
Studies show that Dalit business owners are often denied bank loans and must rely on local money lenders who charge predatory interest rates. Additionally, because they lack family connections in elite corporate circles, they are often excluded from the networks required to win big contracts or attract wealthy clients.
Why the “Safety Net” is Shrinking
For decades, the Indian government helped Dalits through “reservations”—a quota system that guarantees a specific percentage of government jobs and university seats for marginalized groups. The problem is the quota is filled.
The problem today is that India’s economic growth is happening outside of the government. The state is steadily privatizing industries like banking and aviation and the booming tech sector is entirely private. Because job quotas do not apply to private companies, Dalits must compete in a corporate world where hiring bias still exists.
Studies have shown that corporate job applicants with typical Dalit last names receive far fewer interviews than upper-caste applicants, even when their resumes and qualifications are exactly the same.
The Big Picture
India’s rapid economic growth has successfully lifted the floor, ensuring that those at the bottom have better access to basic daily needs. However, it has not shattered the glass ceiling.
True progress will require more than just a rising GDP; it demands targeted efforts to open private-sector jobs, provide fair business loans, and ensure high-quality education for every child, regardless of the family they were born into. Until then, economic growth alone cannot dissolve the deeply entrenched barriers of the caste system.
References
1.https://www.roundtableindia.co.in/economic-growth-and-caste-in-india-a-dichotomy/
2.https://voxdev.org/topic/macroeconomics-growth/macroeconomic-costs-caste-system-india
3.https://www.aeaweb.org/articles?id=10.1257%2Fjel.20171307&utm_source=chatgpt.com
4.What is the Socio-Economic Status of Dalits in India and How it can be Improved?
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