ABROGATION OF ARTICLE 370: HOW CAPITALISM

PLAYED A ROLE IN REVOKING KASHMIR'S SPECIAL

STATUS.

ABSTRACT

By means of this document, an analysis will be conducted using a jurisprudential lens of

revocation of Article 370 and understand its economic impact in Kashmir. The paper's central

theme is " Law & Capitalism ", about Karl Marx's texts that are not precisely jurisprudential.

He seems to concentrate mainly on a criticism of the law as one of the numerous weapons of

oppression available to the ruling classes. Marx's criticism of law derives from his criticism

of State and religion. In an unorthodox way, he examined why individuals in social,

economic, and political aspects sought consolation in their faith. The purpose of this study is

to relate the removal of Article 370 to Capitalism. We will also talk about how Capitalism

has influenced the State of Kashmir valley in a jurisprudential way. Finally, the article

examines whether this transformation and shift in Kashmir's status are beneficial or harmful

for the State, following the abrogation of Article 370.

RESEARCH QUESTION

The question posed in this research is how the repeal of Article 370 resulted in the

capitalization in Kashmir and how its long-lasting, unique status will be impacted. The article

may address this question by studying why this matter of capitalization in Kashmir valley

plays a vital part in comprehending the issue of law, society and law and Capitalism. Another

subject that may also be studied in this research is how capitalists control both the function of
the Government and legal executive in achieving a positive outcome through Karl Marx's

approach to law and Capitalism.

RESEARCH METHODOLOGY

The paper focuses on qualitative and explorative research methodologies, which draw the

information and conclusions from secondary sources such as journal papers, online articles

and press articles.

INTRODUCTION

In human social production, they necessarily enter certain circumstances, irrespective of their

desire, that is, relations of production suited for a certain phase of development of their

material producing strengths. Sooner or later, changes in the economic foundations will lead

to the redesign of the whole vast superstructure, the economic structure of the society, the

fundamental basis on which a legal and political superstructure emerged, and correspond to

specific kinds of social awareness. There is always a distinction between the material changes

in the economic conditions of manufacture that can be precisely determined by natural

science and the legal, political, religious, artistic or philosophical forms, in short, the

ideological forms in which this conflict is understood and combated. 1 As the State is the form

in which the ruling class individuals proclaim its mutual goals, and where the entire civil

society of the period takes its place, the State mediates in the creation of all common

institutions and receives a political shape for the institutions. Thus, an exploiting class's

economic and social supremacy does not inevitably perpetuate itself in class societies. On the

contrary, the exploiting class strives to become a ruling class using an institutional structure,

the State, which functions to preserve and replicate that position.2

1
Marx Karl, A Contribution to the Critique of Political Economy (Progress Publishers, Moscow 1977)
2
Deane Curtin defines environmental ethics as a postcolonial concern with 'environmental

justice, social justice, and economic justice as components of the same totality, not as

discordant rivals.'3 The debate that follows will demonstrate how any concerns and efforts to

seek peace, reconciliation, or justice in IOJ&K have been ignored as a result of the social,

economic, legal, political, and, as a result, environmental injustices meted out to this land and

its people.

The revocation of Article 370 reflects the breakdown of the international capitalist order, the

shortage of a powerful capitalist dominates, the collapse of working-class organizations and

the subsequent development of several sub-imperialist forces. The invasion of Kashmir will

only assist the people of Jammu and Kashmir to revive the region and open up their economy

to investment. Authoritarian Capitalism is a type of Capitalism in which the State is used

forcefully to further the interests of the capitalist.

BACKGROUND OF ARTICLE 370 AND ITS RELATION WITH

KASHMIR.

While expounding Marx's method, Hobsbawm remarked that "economic growth could not be

described except in terms of particular historical epochs and particular social structures."4

Before independence, Jammu and Kashmir were a princely Muslim majority

kingdom governed by a Hindu, Maharaja Hari Singh. The Princely States had the freedom to

opt for India or Pakistan at the moment of independence, according to the aspirations of their

people. However, the attack by Pakistan-supported Pashtun tribe members after division

(1947) broke out in an Indian-Pakistan dispute. In order to end the Pashtun attacks, the

3
Amir R, “Impasse of Kashmir and Recurring Pretexts: A Historiographical Analysis” (2020) 17 Policy
Perspectives 83 <www.jstor.org> accessed June 23, 2021
4
Bhambhri, C.P. “The Indian Transition.” Social Scientist, vol. 41, no. 1/2, 2013, pp. 69–85. JSTOR,
<www.jstor.org/stable/23611081>. Accessed 25 May 2021.
Maharaja called for Indian aid, and the Instrument of Accession was signed in these

circumstances. However, this admission was regarded as provisional, awaiting the results of a

referendum. In 1948, the United Nations Security Council approved motions to settle India-

Kashmir Pakistan's conflict, suggesting a vote among Kashmiris to select which nation they

wished to join. India recognized the necessity to quench Kashmiri's discontent,

notwithstanding its resistance to a referendum. In 1950, to win regional support and counter

Pakistani influence and claims in the disputed area, the Indian constitution provided Jammu

and Kashmir with substantial independence. Article 370 curtailed the Indian Government'

rights except over defence, foreign policy and communications in the territory according to

the treaty of the Indian Annexation in 1947 of the erstwhile Principally State. Article 35a,

inserted into the Indian Constitution by a 1954 presidential order, gives the sole right of

permanent state residents to hold immovable property, vote and elections, seek employment

with local Government and obtain other benefits, including medical facility and higher

learning. The constitutional change also barred the national parliament without the agreement

of the electoral assembly from altering the state boundaries. Although Kashmir's separatist

organizations continued to support independence Kashmir or union with Pakistan, they

initially met Kashmir's more moderate (pro-Indian) political parties.5

The central Indian Government has been in charge and directed local politics over the

decades following the independence. In addition to the fact that "Jammu and Kashmir State is

an essential component of India," the National Constituent Assembly of Jammu and Kashmir

has upheld the accession to India under Section 3. In accordance with Article 370, several

presidential notices have been issued, substantially weakening State authority. The Supreme

Court in India has unambiguously upheld the legality, even though the politics and morals of

this legal integration are dubious.

5
International Crisis Group. A Torn History. International Crisis Group, 2020, pp. Page 3-Page 7, Raising the
Stakes in Jammu and Kashmir <www.jstor.org/stable/resrep31442.5> accessed 15 June 2021.
AFTERMATH IN FINANCIAL WORLD OF KASHMIR AFTER THE

ABROGATION OF ARTICLE 370.

On August 5, 2019, the central Government dissolved Jammu and Kashmir's administration

and its special autonomous state status, revealing economic progress and political dynamics.

In the words of political experts, when Article 370 was abolished, the region was "open" to

commerce, as it was during the curfew and shutdown of the internet, signified by class

warfare inside the State. Capitalists from other states would squander the treasures of the

State and leave the middle-class workers in the same or worse position as before the

abolition. When we examine Kashmir's economic growth, we may conclude that it is a gift

for the rest of the country but a curse for Kashmir. For example, there was little to no

industrialization or factory construction in the valley of Kashmir because Article 370

prohibited outside industries and companies from establishing themselves there, protecting

the valley's natural resources and the environment from contamination. However, with the

repeal of Article 370, industries and factories and workers from other states would enter the

valley and contaminate the natural resources. The imposition of limits, continuous

shutdowns, and an internet blockade in the Valley from August 5, 2019, to December 5,

2019, dealt significant damage to the Kashmiri economy, with losses ranging from Rs 14,295

to Rs 17,878 crore.

Jammu & Kashmir had two significant lockdowns. The first occurred when the State was

removed from its statehood and distinctive constitutional position, with the second happening

due to COVID-19. These two lockdowns left the State in chaos, destroyed the tourism

industry, and significantly affected the state economy. According to the figures from the
CMIE in August 2019, the unemployment rate was over 20% following 30 months below the

level.6

Within months following the repeal of Article 370, the core sectors of the J&K economy saw

a sharp downturn. In the last five months alone, the Kashmirian economy has lost INR 178.78

billion, over 90.000 jobs in the craft, tourist and IT industries because of the communication

embargo, curfews, and terrorist threats. In addition, there is damage in the horticulture

business, disarray of tourism, and a constant restriction on the internet hits students. In the

past 70 years, this is the first time rural Kashmir has seen this severe financial slump. The

Kashmir apple industry has been impacted severely with 80 billion INR and 8 per cent of the

GDP of J&K. Terrorist threats, combined with a harsh government attack, led to a delay in

the harvest for almost a month, which gave the industry a disastrous blow for the duration of

the peak harvest season. The damage was done while NAFED acquired the Government and

auctioned apple crops. Hundreds of farmers before the intervention were forced to sell or

decline their goods at rates of lumping.7

KARL MARX'S APPROACH TOWARDS CAPITALISM AND

HOW CAPITALIZATION IN JAMMU AND KASHMIR

Karl Marx appears to be primarily concerned with a critique of law as one of many

oppression instruments in the ruling class's hands. Marx's criticism of the law stems from his

6
Vignesh Radhakrishnan & Sumant Sen & Naresh Singaravelu, “Data: One Year since Article 370 Revocation:
Economy Crippled, More Locals Take up Militancy, and More” (The HinduAugust 5, 2020)
<https://www.thehindu.com/data/data-one-year-since-article-370-revocation-economy-crippled-more-locals-
take-up-militancy-and-more/article32273731.ece> accessed June 18, 2021
7
Wani A, “Life in Kashmir after Article 370” (ORFJanuary 29, 2020) <https://www.orfonline.org/research/life-
in-kashmir-after-article-370-60785/#_edn27> accessed June 30, 2021
criticism of religion and the State. In social, economic, and political dimensions, he wanted to

investigate why individuals found consolation in religion.

Article 370 reversal signifies the fall of the international capitalist system; the paucity of a

strong, dominant capitalist authority; the disintegration of workers' organizations. The

invasion of Kashmir would only assist the people of Jammu and Kashmir to revive the region

and open up their business to invest. Authoritarian Capitalism is a type of Capitalism in

which the State is utilized repressively to further the capitalist's interests. The line between

State and capital is becoming increasingly blurred. In the interest of capital, the Government

intervenes in the economy.8

On August 5, 2019, the central Government dissolved Jammu and Kashmir's administration

and its special autonomous state status, revealing this picture of economic progress and

political dynamics. When Article 370 was abolished, the region was, like during the curfew

and internet closure, available to politically expert business; class struggles within the State

symbolize all this through Capitalism. Marx's view of law, economics and religion is shown

by abolishing Article 370. Marx defined the State as a "condensation of the ruling class's

economic interests," which implies it is devoted to the concerns of the bourgeoisie by

repressing proletariat interests for capital profits.

The Government has thus abdicated its obligation to adopt laws commensurate with the

requirements of the people in general it serves, and the Court has been unable to monitor such

legislation, obviously respecting the needs of other capitalists. Alan Hunt examines the law

through a Marxist perspective in his essay, focusing on the degree and manner in which the

legal system operates to perpetuate class dominance. He contends that to preserve economic

and social supremacy, the exploiting class transforms into a ruling elite through the use of an
8
“Nationalism, Communication, Ideology.” Communication and Capitalism: A Critical Theory, by Christian
Fuchs, vol. 15, University of Westminster Press, London, 2020, pp. 235–258. JSTOR,
www.jstor.org/stable/j.ctv12fw7t5.14. Accessed 2 April 2021.
"institutional system." More emphasis has been placed on the notion that there is a need for

internal consistency in legislation, which is utilized by the bourgeoisie to construct

ideological doctrine. One such example is the ineffectiveness of the theory of separation of

powers, which serves merely to defend the identity of law and the legitimacy of the State.

Law is regarded as a weapon that acts as a kind of coercive dominance and ideological

domination, both of which contribute to the efficacy of law as a social order mechanism.9

Marx defined the State as a "condensation of the dominating class's economic interests." That

is, it is dedicated to the bourgeoisie's concerns by repressing proletariat interests for capital

benefits. As a result, they can consolidate political and economic dominance. The only way

Marx saw this overturn was for genuine Communism, which did not lead, as Vincent found

to indicate, at least, from Marx's ideas to class, coercion, suitable manipulation, privately

owned ownership to remove the necessity for justice or demands for rights. Marx

differentiates 'real' from 'unreal' law, too. For example, Marx talks about the law being active

in saying that an unconscious natural norm of freedom may be considered fundamental law

only if it becomes a conscious law of the State. Thus, for example, where there is freedom,

rules cannot prevent man's acts since freedom is a natural law.10

In Marxist legal theory, there are a few repeated issues that examine the underlying political

nature of legislation, the representation and intellectual legitimacy of the interests of the

ruling classes. These topics represent a break from a perspective that regards legal principles

as taken-for-granted fundamental truths of law and requires us to consider class battles.

According to Marx, legal interactions, such as the restricted liability of corporate

organizations, are also economic relations. The imbuing of a private entity with legal identity

is what distinguishes it as a vehicle for Capitalism. In the form of commercial law, insurance
9
'Problems of the State: Law, State and Class Struggle' by Alan Hunt
10
Vincent, Andrew. “Marx and Law.” Journal of Law and Society, vol. 20, no. 4, 1993, pp. 371–397. JSTOR,
www.jstor.org/stable/1410207. Accessed 2 Apr. 2021.
law, legal interactions increasingly allow for capital circulation. Similarly, a valid apparatus

provided to property rights because of contractual duties helps explain the links between legal

and economic connections. The rule of law legitimizes the economic manifestations of

dominating capitalist forces.11

When capitalization is introduced, there would be commercialization and mismanagement of

Kashmir's natural resources. When Capitalism with large enterprises and factories enters

Kashmir when Article 370 is repealed, the independence of Kashmiri indigenous businesses

would be stolen away. Also, as Karl Marx warned us, the 'New' is born out of the 'Old,' and

the persistence and resilience of the 'Old' social relations of production remain an integral

part of the living social realities of any society that has transitioned from feudalism to

Capitalism. The history of Europe's lengthy journey from feudalism to Capitalism validates

the notion that a social and material transition from the old system of production to the new

takes centuries.12 The Government may have to take the lead. The earlier policy to construct

public-sector industrial units in pursuit of balanced regional development has become

untenable, given the financial condition of government-owned businesses. Expenditure on

infrastructure is a more realistic alternative, particularly if tourism is increased. Private

investment will be needed, but this is unlikely to happen shortly, given India's present level of

economic activity. Massive migration would revive the same cultural issues that sometimes

occurred in other parts of India, especially in an erstwhile state subject to significant political

turmoil.13 After understanding both orthodox and unorthodox approaches taken by Karl Marx

of law, religion, and economy of a state, we understand all these points.

11
Ibd
12
Bhambhri, C.P. “The Indian Transition.” Social Scientist, vol. 41, no. 1/2, 2013, pp. 69–85. JSTOR,
www.jstor.org/stable/23611081. Accessed 25 May 2021.
13
Rajadhyaksha N, “Opinion: Lessons for Kashmir's Economic Integration with the Rest of India” (mintAugust 6,
2019) <https://www.livemint.com/opinion/columns/opinion-lessons-for-kashmir-s-economic-integration-with-
the-rest-of-india-1565109838425.html> accessed June 20, 2021
HOW ABROGATION OF ARTICLE 370 IMPACTED INDIA.

Many Indians find it difficult to accept the 'abrogation of Article 370. We are so habituated to

the status quo as to challenge our cognitive skills by changing this scale. However, the status

quo in Kashmir was unsustainable long ago, as many of us would rather refuse. The Indian

authorities only avoided political and political lethargy. The 'Kashmir problem' has always

been a bilateral problem for J&K and New Delhi people. In the last seven decades, the rest of

India has had a single policy package concerning J&K, with unsatisfactory results. Now is the

moment to change these policies. Like the people of Jammu and Kashmir and Ladakh in

India, the rest of India is interested in the new Union territories. There will be no limitations

on other Indians dealing and conducting business in Kashmir and purchasing property, and it

is now permitted. As a result, when new businesses and factories are established in the valley,

workers and employees from other states will be hired, which would influence India's

economy.14

CONCLUSION

People in Jammu and Kashmir have been denied special rights promised by the

Indian constitution's Article 370, and its repeal has heralded in political instability and may

result in a demographic shift in the State. The abolition of Article 370 denounced ethnic

identity, employment, and rights. Though Article 370 has abolished the hopes and goals of

the people of Jammu and Kashmir, a great deal more must be done to solve their problems

legally and constitutionally. In resolving the long-standing Jammu and Kashmir problem, the

evolution of public opinion inside and beyond India may be essential. The Indian

Government shall not operate in the Jammu or Kashmir area save in areas of defence,
14
“Kashmir Article 370: Will Revoking Special Status Be Good for Kashmir, India?” (The Economic Times August
6, 2019) <https://economictimes.indiatimes.com/news/politics-and-nation/article-370-will-revoking-special-
status-be-good-for-kashmir-india/articleshow/70543207.cms?from=mdr> accessed June 15, 2021
financial, international and communications pursuant to Article 370 of the Indian

Constitution. All modifications will be placed in Kashmir by capitalization. While

contemplating how Capitalism will advance and equalize Kashmir to other Indian countries

by adopting the unorthodox perspective of Karl Marx to Capitalism and its connection with

law and religion. We dealt with Capitalism and religion using the notion of Marx by Vincent.

Several references have been utilized to understand better how the critical propensity to take

care of the interests of their industrialists, and monetary accomplices are; the Indian

administration has ignored people's concerns in Jammu and Kashmir.