Caste and Capital: Evaluating the Economic Cost of Dalit Exclusion in India

Abstract

India’s socio-economic fabric is inextricably tied to the caste system, a millennia-old hierarchical social structure that continues to shape access to resources, opportunities, and dignity. Among the most affected by this system are the Dalits, formerly referred to as "untouchables," who have historically faced systemic exclusion from mainstream economic, educational, and political life. This research paper delves into the often-overlooked economic cost of such caste-based discrimination, analyzing how the marginalization of Dalits results not only in social injustice but also in measurable losses to the national economy. Through a multidisciplinary lens that integrates history, economics, sociology, and public policy, this paper quantifies the long-term economic consequences of excluding a significant portion of the population from meaningful participation in India’s growth story.

The persistence of caste-based discrimination, despite legal safeguards, continues to impair Dalit access to quality education, dignified employment, entrepreneurial opportunities, and representation in governance. These barriers are not merely social injustices; they are structural inefficiencies that result in underutilization of human capital. This paper contends that the Indian economy suffers from a silent, compounding loss when Dalits are denied the tools and spaces required for socio-economic mobility. Drawing upon extensive data from government surveys, academic studies, and reports from international development agencies, the study quantifies this economic loss in sectors critical to national development.