Ambedkar was the first Doctoral Degree holder in economics among Indians. He is one of the great economist both by training and by practice. His economic expertise covers public finance , Monetary economics , agricultural economy and activities of uplifting downtrodden socially and economically. also he was a pioneering feminist of modern India.

1. MAJOR ADVISOR:
Dr. M. N. VENKATARAMANA
Associate Professor.
Dept of Agril. Economics.
PRESENTED BY :
K. C. VENUPRAVEEN
PALB- 4096
1Department of Agricultural Economics, University of Agricultural Sciences, GKVK, Bengaluru.

2. 
 Introduction
 Dr. Ambedkar: The Economist
 Scholarly Contributions To Economics
• Contributions To Public Finance
• Contribution To Monetary Economics
 Analysis of Indian Economic Problems
• Economics of Caste System And Untouchability
• Agriculture and Poverty
• Ambedkar’s water resources policies
• Ambedkar And Women Empowerment
 Dr. B. R. Ambedkar And Mahatma Gandhi, Interface
 Conclusion
Flow of presentation
2

3. 
 Dr. B.R. Ambedkar (14th April 1891 – 6th december 1956)
(B.A., M.A., Ph.D., D.Sc., Barrister-at-Law., L.L.D., D.Litt)
Education:
 Ph.D in Economics, From Columbia University. USA.
 D.Sc. in Economics, From London
School of Economics.
Barrister-at-Law at Gray's Inn, London
Introduction
Maharaja Gaekwad of Baroda, who
opened an opportunity for Indians to
study at Abroad.
Shahu Maharaj, who financially
supported Dr. Ambedkar, to continue his
education in LSE.
3

4. 
 1918: Professor of Political Economy
 Nominated Member of Bombay Legislative
Council-in 1926. His remarks on Budgets were of a
great treasure for taxation policy and public works for Inclusive
development of the people.
 As a labour leader, he struggled for safeguarding rights and welfare
of workers.
 Member of Viceroy’s Executive Council ( Labour, Water, Power and
Mineral Resources)
 1st Law Minister of Independent India.
 Father of Indian Constitution.
4

5. 
Dr. AMBEDKAR: AN ECONOMIST
“Ambedkar is my Father in
Economics, His contribution in the
field of economics is marvelous and
will be remembered forever..!”
-Dr Amartya Sen
“Ambedkar's economic thought, vision
not fully understood”
"the more we recall Ambedkar's
thought, in the context of issues currently
faced by India, the more we come to
respect his vision and his approach to
inclusiveness.“
- The PM, Narendra Modi. 5

6. 
1. Intellectual slavery: Indians most often quote foreign
authors neglecting contributions of Indians
 2. Shadowing effect of his other magnificent works(law, politics,
religion, sociology, etc.).
 Rejection of these Theories (Narendra jadav)
 e.g. Dada Bhai Navaroji and Mahadev Govinda Ranade are often
quoted rather than Dr B.R.Ambedkar.
 Other reasons (Ambirajan)
 1. Fault of the Indian political leadership in the post-independence
era.
 2. Fault of the Dalit community for having projected him
exclusively as its own leader.
Reasons for Neglecting Ambedkar’s
Economic Thoughts
6

7. 
Ambedkar as an Economist
1st phase: as a Student and Professor of
Economics. In the form of dissertations and
articles. (1915-1923)
2nd phase: As a professional economist in
addressing India’s economic problems and in
managing economic affairs of the country. (1923
– 1956)
Ambedkar’s Contribution to
Indian Economics
7

8. 
CONTRIBUTIONS TO PUBLIC FINANCE:
a. Administration and Finance of the East India
Company. (M A thesis submitted to Columbia University )
b. The Evolution of Provincial Finance In British
India.(Ph. D thesis submitted to Columbia University)
.
SCHOLARLY CONTRIBUTIONS
TO ECONOMICS:
8

9.  Ambedkar provides a historical review of the changes in administration
and finance of the East India Company during 1792-1858 and depicts
how those changes led to the suffering of the Indian people at the hands
of the British rulers.
Key findings:
Administration and Finance of
the East India Company
 Creation of “Public Debt of India” even though having budget
surplus for 36 years out of 60 years.
 Through, drain of wealth of India , as a continuous tribute to
pay dividends for the Company’s share holders.
 The Indian debt created in India > The home bond debt
created in England. 9

10. 
Contd…
Huge Land Taxes:-
54 per cent of total revenue and which was also highly fluctuating to
the extent of 80-90 per cent in some provinces, whereas in contrast to
this only 10 per cent in England for years up to 1798.
Government expenditure:-
military expenditure accounted for as much as 45-64 per cent of the
total budget
He also points out that Manchester city in England spent on a single
item - water, a larger amount of money during 1834 than what the
EIC had spent on all kinds of public works in India.
Trade Policies:-
He also pointed on imposition of prohibitive duties on Indian
manufacturer exports to England as against negligible duties on
British manufacturer imports to India. However, cotton exports
from India to Great Britain from free from duty etc which is
discriminatory.
10

11. 
Contd…
View on Expenditure.
Finance of a country are to be judged from the view point of
developmental expenditure and among the developmental
expenditure public works (roads, canals, electricity, telegraph,
etc.) should receive prominent position.
Over all view:-
In entirety he condemns the entire fiscal system of the
east India Company
By considering all these, Dr Ambedkar points that the
Indian public debt is done largely by the government
of India, i.e., EIC as it was entirely due to creation of
war, etc 11

12. Ph.D. Dissertation submitted to Columbia
University.
It reveals evolution of Centre- state financial
relation in British India from1833 to 1921.
1833-1871: Imperial System of Government.
Failure of this system lead to evolution of
Provincial Finance.
THE EVOLUTION OF PROVINCIAL
FINANCE IN BRITISH INDIA
Under the imperial system, the expenditure budgets were
prepared by the provincial government but the responsibility
for finding the ways and means for financing them rested on
EIC.
12

13. 
In provincial Finance system Ambedkar discusses three
forms of systems, namely
Budget by assignment
Budget by assigned revenues
Budget by shared revenue
Under each type Ambedkar discusses how were the
revenues and expenditure system and at the end
discusses what ought to be the system of relationship
related to financial responsibility in different
Departments.
This book is the first of its kind dealing with the most
discussed topic in the present context - the state and
Centre financial relationship.
Contd…
13

14. 
 Bombay Provincial budget (1927-28):-
Addressing Finance Minister
 Most essential requirement of a good revenue system is that it should be
reliable
 It doesn’t matter whether that revenue system brings in large revenue or
small revenue. More than the revenue, the variation is crucial, which has
to be the least.
 But, Land revenue and excise, the two top parts of Budget, have large
variations
Addressing tax payers
 The revenue system of the presidency is inequitable and indefensible
 Every farmer, whatever may be his income, is brought under the levy of
the land tax. But under the income tax no person is called upon to pay
the tax, if he has not earned any income during the year
 Under the land revenue system a person is taxed at the same rate,
whether he is an owner of one acre of land, or a jahangirdar or an
Provincial Budgets
14

15. 
Remarks on excise duty
This was not meant for the purpose of
enabling the government to raise
revenue, but the monopoly was
enacted .
e.g.. Government accepted policy of
prohibition of alcohol consumption and
measures undertook by the government
such as rationing.
Cont...
15

16. 
Contemporary Relevance of Ambedkar’s
Contribution To Public Finance
 Replacement of Planning
Commission by NITI
Aayog, to enable
increased participation of
States for greater planning.
 Provision of Finance
Commission in the
Constitution.
16

17. 
The Problem of Rupee; its origin and its solution, and
statement and evidence before the royal commission on
Indian currency and finance in 1926.
In 1st part of the book Ambedkar discusses how currency
evolved over the period from 1800 to 1920, through Silver
Currency, gold standard and gold exchange standard.
In the 2nd part, he discusses an ideal system of currency
system to maintain stability and to save people from evils of
Inflation.
MONETARY ECONOMICS
17

18. 
Ambedkar Vs J. M. Keynes
GOLD STANDARD VS GOLD EXCHANGE STANDARD.
“The Problem of Rupee-1923”
Gold coins themselves used as currency
or medium of exchange.
The affairs of mankind with the deal of
Nature- creates automaticity.
But flexibility is a double edged
weapon. It is bad if there is reckless
issue of currency by an irresponsible
government .
Leads to inflation with negatively
effects the interest of common man.
“Indian Currency and Finance-1914”
Paper currency backed up by gold
reserves is used as a currency.
He recommended gold exchange
standard for a developing country like
India.
There is virtue of flexibility, so the Govt.
can alter the availability of money.
18

19. 
Ambedkar and formation of RBI
The memorandum submitted to the Hilton young commission in 1925
“a managed currency is to be altogether avoided when the
management is to be in the hands of the government”.
In the case of the government “the chance of mismanagement is greater”
because the issue of money “is authorized and conducted by men who are never
under any present responsibility for private loss in case of bad judgment or
mismanagement”.
The Commission members found Dr. B. R. Ambedkar’s book "The
Problem of the Rupee- Its origin and Its Solution” an invaluable
reference tool and the Central Legislative Assembly eventually passed
these guidelines as the RBI Act 1934
Relevance of Ambedkar’s concept
E.g.. Issue of 1,08,000 crores worth of ad hoc treasury bills, to maintain a balance of
50 crore in RBI by Central Govt. In 1994 ,the system was withheld.
19

20.  Other than these scholarly contributions of Dr. Ambedkar, after his
back to India , he didn’t write any book on Economics, But every
work he did, as MLA, Labour leader, Minister in Viceroys Executive
Council, Law minister and as a Constitutionalist had an imprint of
Ambedkar as Economist.
 He was of a personality, who had understood every grievance of
people and struggled for the welfare and the progress of India.
e.g. He quotes Bateson’s in his Heredity theory of Mendel, in his Book
ANNIHILATION OF CASTE
Analysis of Indian Economic
Problems
20

21. 
Chaturvana as a concept of Division of
Labour. even Gandhiji was sympathetic to this view.
 Annihilation of Caste: division of laborers
Economics of caste system
and untouchability
This division of laborers was not based on natural aptitudes
or acquired skills but on the dogma of predestination. While
there is nothing wrong in the notion of the division of
labour, no civilized society in the world has a division of
labour along with such unnatural division of laborer! 21

22. 
Ambedkar believed that the caste system as a major
obstacle to economic growth and development
through immobility of Capital and Labor.
According to him, untouchability was not only a
religious system but also an economic system which
was worse than slavery. 22

23. 
The problem of small holdings in agriculture.
Traditional definition of an economic holding:
“a holding which allows a man a chance of producing
sufficient to keep herself and his family in reasonable
comfort after paying his necessary expenses”
Ambedkar opposes this as it was from standpoint of
consumption rather than from the viewpoint of
production
Economic holding: Mere size of land is empty of all economic
connotations… It is the right or wrong proportion of other factors
of production to a suit of land that renders the latter economic or
uneconomic
AGRICULTURE AND POVERTY
23

24. 
24
(in hectares)
(in hectares)

25. 
 Remedy lies in not enlarging the holdings but in increasing
capital and capital goods and in greater Urbanization.
 Industrialization of India is the soundest remedy for the
agricultural problems of India.
 For maintenance of standard size of holdings he proposes
for co-operative farming than enlarging holding size under
a single ownership.
 The co-operative farms will be like a shareholders company
in which the company remains even though the
shareholders change
 Land reforms and prominent role for the state in economic
development- state socialism. 25

26. 
Abolition of The Khoti System:
Ambedkar introduced a holistic bill as an elected member in the
Mumbai legislative assembly aimed at abolition of Khoti system in
1937
“I know your grievances. The Khoti system is sucking your
blood. This system of land tenure must be abolished, its abolition
will bring you peace and progress. In order to achieve your goal
you must keep the agitation going on”
26

27. 
 March 19th 1928, Ambedkar introduced a bill in the Bombay
legislative council to amend Act of 1874
 for securing the rights of servants and reformation in the bill
for revised
 Vatan system and
 Payments according to their cost of living.
 This bill got opposition at many times but subsequently came
to an end by the act of Bombay inferior village Vatan
abolition Act of 1959
Mahar vatan
27

28. 
The Bombay Moneylenders Bill:-
 Prepared by Ambedkar in 1938
 Had some very innovative provisions, even by the
prudential, standard advocated today
Such as,
 Moneylenders being subjected to licenses from the
Government renewable every year,
 Compulsion of written records of all lending operations
and mandatory issue of passbooks detailing all transaction
between borrowers and lenders.
28

29. Right to strike:- fought against industrial dispute Bill in 1938
 Creation of Labour organizations
 1936- Independent Labour Party aiming to strengthen the
workers politically and economically
 Labour minister in Viceroy’s executive council- Tripartite
conference (Labour, employers and the government) as an
advisory body to help achieving further progress in respect of Labour
welfare measure.
Employment Exchanges
As a Labour leader
29

30. 
policy initiatives taken by Ambedkar as a cabinet
minister of labour, Irrigation and power
A remedy for present day Water Sharing Dispute.
Critic on Act of 1935: On the lines of Water as a
Wealth of Nation.
WATER RESOURCE POLICIES
30

31. 
Greater role for centre:
Formulation of a integrated approach for optimal
utilization of the Water Resources
Ambedkar suggested the establishment of
independent authorities, giving the central
government a leading role
Ambedkar’s policy framework led to…
 The adoption of River Valley Authority (to overcome
the jurisdictional problem) and
 The creation of present day Central Water
Commission an apex technical body at the Centre.
31

32. 
Implemented works as per the Policy Framework
 Damodar Valley Project in Bihar and West Bengal, based on the Damodar
Valley Corporation Act 1948
 He gave legal frame work to this approach while framing Constitution.
 Ambedkar,for the first time had suggested interlinking of Krishna, Godavari
and Tapti Rivers
The torch lighted by Ambedkar for the first time in
Damodar Valley has been since passed on to the Mahanadi,
Kosi, Sone, Bhakra-nangal Project( bringing prosperity to
Punjab, Haryana, Rajasthan, Himachal Pradesh and Delhi )
and other river valley development schemes.
32

33. 
He was the champion of human rights, he promoted Equality,
Liberty and Fraternity in the society
 Gender Equality
 Women Education
 Hindu Code Bill -constitutional foundation for safeguarding
the rights of Indian women and oppressed classes
 Women organization
 Maternity bill
WOMEN EMPOWERMENT
“I measure the progress of a community by the degree of progress which women have achieved”.
“It is in the interest of the nation that the mother ought to get a
certain amount of rest during the pre-natal period and also
subsequently, and the principle of the Bill is based entirely on that
principle”
33

34. 
 Article 14- Guarantees that the state shall not deny equality
before the law and equal protection of the laws;
 Article 15- Prohibits discrimination against any citizen on
the ground of sex;
 Article 15 (3) - Empowers the state to make positive
discrimination in favour of women and children;
 Article 16- Provides for equality of opportunity in matters of
public employment;
 Article 23- Prohibits trafficking in human beings and forced
labour;
 Article 39 (a) and (d) - Enjoins the state to provide equal
means of livelihood and equal pay for equal work;
Article 42- enjoins upon the State to make provisions for
securing just and humane conditions of work, and for
maternity relief;
Constitutional Provisions
34

35. 
 Article 51A (e) - imposes a Fundamental Duty on every
citizen to renounce the practices derogatory to the dignity of
women;
 Article 243D (3)- provides that not less than 1/3rd of the total
number of seats to be filled by direct election in every
Panchayat to be reserved for women, and such seats to be
allotted by rotation to different constituencies in a Panchayat;
 Article 243T(3)- provides that not less than 1/3rd of the total
number of seats to be filled by direct election in every
Municipality shall be reserved for women and such seats may
be allotted by rotation to different constituencies in a
Municipality;
 Article 243T(4)- provides reservation of offices of Chairperson
in Municipalities for Sc, ST, Women in such manner as the
legislature of a State, may by law provide; 35
Contd…

36. 
 Caste and untouchability:
Division of Labour VS Division of Labourer
 Village and solvation of India
 Gandhi- Gave a call to the people to back to villages and
revival of village industries and he argues that solvation of India
lies in spinning wheel, the Charakha.
 Ambedkar- Agriculture is the most congested occupations hence
salvation of the whole India lies in greater urbanization
 In reviving our towns, in building our industries, in removing as
much population as we possibly can from our village to the towns
Dr. AMBEDKAR AND MAHATMA
GANDHI- INTERFACE
Gandhi to Ambedkar.
YOU HAVE BORNED AS AN UNTOUCHABLE BUT I HAVE ADAPTED MY
SELF AS AN UNTOCHABLE
36

37. 
 Gandhi was against modern civilization and mechanization but
Ambedkar was pro- modernization.
Village Swaraj VS individual independence.
Swadeshi: Production , Consumption and Distribution
within the territory only.
 Decentralization and Federalism.
37

38.  Indian Agriculture is an occupation not an Industry
 Balanced cultivation
 Greater urbanization , reviving our towns and
driving excess population to towns.
 Industrialization is the sound remedy for problem of
small holdings.
Debate on Agricultural problems
38

39. 
LEGALITY
INEQUALITY
GOVERNANCE
CASTE
ECONOMICS
POLITICIZATION
HISTORY AND
ANTHROPOLOGY
OF CASTE
DISCRIMINATION
39

40. 
40