A National Institution Is Needed To Mainstream, Integrate Law And Economics: R Venkataramani

“We need a national institution that can work towards mainstreaming and integrating law & economics and policy and judicial administration, said R. Venkataramani, Attorney General of India.

He was speaking at the book launch of the recently published volume, “Supreme Court and the Indian Economy”. The book was released at an event organised by global public policy research & advocacy group CUTS International, Society of Indian Law Firms (SILF), a collective body of India's top corporate law firms and the CUTS Institute for Regulation & Competition (CIRC) in New Delhi yesterday.

The book examines the impact of the Supreme Court's decisions on economic policy issues, particularly in areas such as natural resources, privatisation, competition and environmental regulations. It provides a critical look at how these judicial interventions have shaped governance and policy-making in India.

This book has been authored by Pradeep S. Mehta, founder Secretary General of CUTS International, a renowned public policy research, advocacy, and networking NGO established forty years ago.

Inaugurating the book, Venkataramani said, “A critical question the book raises is- what the legal and policy institutional framework is delivering to common women and men?”. To achieve this objective, we need better understanding of the interstice of law and economics.

He added: “India believes in the holistic principle of ‘Equal Regard & Equal Reward’ for all and not just the Supreme Court, but High Courts and lower courts can be learners to this principle”.

In his opening remarks, Mehta thanked Venkataramani for inaugurating the CUTS’ book, which discusses the significance of balancing law and economics highlighting how the Indian judiciary can undertake more holistic and evidence-based decision making.

Mehta added that CIRC is designed to be a Centre of Excellence in Law and Economics and needs all support.

During the panel discussion that followed the launch, panelists praised the splendid achievement of the Indian Judiciary- mainly the Supreme Court as an institution responsible for the intersection of public interest, political pressures, and social expectations in noteworthy cases.

“Issues about governance, institutions and policy are complex. They need indulgence and engagement, and need to be explained in detail”, says Mehta. He further added, “An essential test that judicial pronouncements must meet is the Test of ‘Implementability’.”

Due to last minute demands, panellist and leading advocate, Dr Abhishek Manu Singhvi could not attend but abstracts from his Foreword were read out, “…while judges and lawyers like us come and go, an institutional, scholarly and statistical analysis of the cost benefit ratio of such cases largely eludes us, amidst otherwise proliferating literature. That searing gap has been filled admirably by this timely and much needed publication”.

“India, being a developing economy, we have to ensure that our economic development is in sync with other decisions including judicial decisions.” mentioned Lalit Bhasin,President, Society of Indian Law Firms (SILF).

Aruna Sharma, former Secretary, Government of India mentioned that, “It is very important that each case law with economic dimensions is hair-split and analysed for its economic impact. and detailed case studies should be prepared which can be studied by academicians, judicial officers, and public policy practitioners”.

“The goals of efficiency and wealth maximisation as enshrined in Economics pose inherent tension with virtues of fairness, justice and equity.”, stated R Sudarshan, Dean, Jindal School of Government & Public Policy.

In response, Mehta stated that in the Global South, we look at the developmental values of economics and not neo liberalism which guides the Western judiciary. “For us livelihoods and jobs are very crucial aspects of how judicial pronouncements impact common people”.

The book "The Supreme Court and the Indian Economy- A Story of Economic Impact of Six Landmark Cases of the Supreme Court", published by CUTS International, provides an in-depth analysis of the Supreme Court of India's influence on the country's economic development and regulatory environment.

It explores the significant role that the judiciary plays in shaping economic policies and practices, demonstrating how the Court's decisions have impacted various sectors including trade, industry, and public policy.

A key theme of the book is judicial activism, which highlights how the Supreme Court's proactive stance has influenced economic reforms and regulatory frameworks.

The book examines landmark cases where judicial rulings have had profound economic implications, illuminating how legal interpretations and decisions have directly affected economic outcomes.

Overall, the book offers a comprehensive understanding of the complex relationship between judicial decisions and economic policy. It sheds light on how legal frameworks established by the Supreme Court contribute to or challenge economic progress in India.

In the overall, panellists felt that the book is a milestone as such effort has never been made in the past. It is recommended that lawyers and judges around the country should read it and that CUTS and CIRC could develop training programmes for judges, in association with the National Judicial Academy and other such bodies, so that they can imbibe some of the knowledge and thus improve their adjudication, which will be beneficial to the whole society and the economy.

In conclusion, Mehta thanked the OP Jindal Global University for supporting the book project and all the panellists. He also announced that a second volume of case studies involving the Supreme Court and the National Green Tribunal is on the anvil and will be ready by the summers of 2025.