Economic impact of judicial decisions

Economic impact of judicial decisions


● The NITI Aayog has asked the Consumer Unity and Trust Society (CUTS) International to conduct a study on the economic impact of the various decisions delivered by the Supreme Court, High Courts and quasi-judicial bodies.

● The findings of the study will be used in the training of judges of commercial courts, High Courts, Supreme Court and the National Green Tribunal. The study is part of the larger initiative by NITI Aayog to create a judicial performance index.

Probable Question:

  1. Certain      decisions of the judiciary have a far-reaching impact on employment,      economy and state revenues. Discuss.

Need to understand the economic impact of judicial decisions:

Economic Impact not taken into consideration: In Courts, judges decide upon the legalities of an issue, the economic impact is not factored in while making decisions.

Unforeseen consequences of judgements:Certain judgements have led to adverse effects on the economy, revenue of the state and employment. For instance, The Supreme Court’s decision on mining leases in Goa led to the end of iron ore mining operations in Goa. Nearly one out of every five people in Goa is directly or indirectly associated with iron ore mining. This led to a drastic drop in the per capita income of Goa.

● It will serve as training input for the judges of High Courts, Tribunals, Commercial Courts and the Supreme Court.

● This would help us understand cases that involve substantial social and economic dimensions that need to be studied in detail to assess whether they are implementable in the first place and whether the loss to the economy outweighs the gains envisaged.

Text Box: Major Recent Cases with Huge Economic Impact Hanuman Laxman Aroskar vs Union of India & Ors. (Mopa Airport Construction Ban) The Goa Foundation vs. M/s Sesa Sterlite Ltd. & Ors (Goa Mining Ban) National Green Tribunal Bar Association vs Ministry of Environment & Forests and Ors. (Sand Mining Ban) Tamil Nadu Pollution Control Board vs Sterlite Industries (I) Ltd & Ors. (Sterlite Copper Plant Ban) Vardhaman Kaushik vs. Union of India & Ors. (NCR Construction Ban)


The judgements and decisions made by the judiciary and quasi-judicial bodies have far-reaching consequences. It is important to set up a mechanism so that the socio-economic impact can be brought in front of the Court before making a decision or judgment so that justice in all spheres - political, social and economic - can be achieved as enshrined in the Constitution.

Economic impact of judicial decisions
Economic impact of judicial decisions
Economic impact of judicial decisions
Economic impact of judicial decisions