The Economic Case for Same-Sex Marriage Recognition in India | Disha

Abstract

This paper explores the complex landscape of same-sex marriage in India, focusing on its legal, social, and economic dimensions. Despite the historic 2018 decriminalization of homosexuality by the Supreme Court, same-sex marriage remains unrecognized, leaving couples without legal rights and protections. The economic impact of legalizing same-sex marriage is examined, emphasizing its potential to unlock the "pink economy," stimulate tourism, and foster a more inclusive economic environment. Drawing from global success stories in countries like the United States and Spain, the paper highlights the economic benefits associated with marriage equality. Challenges including societal biases and government reluctance are discussed, alongside opportunities for advocacy and education. Legal recognition of same-sex marriage is presented as not only a matter of social justice but also a means to unlock economic potential and contribute to a more inclusive and prosperous society in India.

Introduction

The legal partnership of two individuals of the same sex, known as same-sex marriage, has sparked considerable social and legal discussion worldwide. While numerous nations have adopted this idea and incorporated it into their legal systems, others are still wrestling with its ramifications. India provides an especially intriguing example for study.

Despite a rich history of diverse sexualities and expressions within its ancient texts and traditions, the legal landscape regarding same-sex marriage in India remains unsettled. Currently, the country does not recognize same-sex marriage or civil unions, leaving same-sex couples without the legal rights and protections afforded to heterosexual couples. This absence of acknowledgment has sparked continued discussions and disputes, with supporters promoting parity and integration, while detractors referencing societal and religious customs.

Understanding the present status of homosexual unions in India involves analyzing two significant events: the historic 2018 ruling by the Supreme Court of India that legalized homosexuality, and the subsequent decision in October 2023 that refused to authorize same-sex marriage.

In 2018, a five-judge bench of the Supreme Court in a historic verdict, struck down Section 377 of the Indian Penal Code (IPC). This colonial-era provision criminalised "carnal intercourse against the order of nature," a term interpreted to encompass consensual same-sex relationships. The decision, which received widespread acclaim from LGBTQ+ advocates, was seen as a major advancement in promoting equality and the integration of the LGBTQ+ community. It acknowledged privacy as a fundamental right according to Article 21 of the Indian Constitution. This effectively removed criminalization of homosexuality and paved the way for increased acknowledgment and support for same-sex partnerships.

However, the 2023 Supreme Court verdict on same-sex marriage marked a more cautious approach. While acknowledging the rights of same-sex couples and the protection they deserve under the Constitution, the court declined to grant legal recognition to same-sex marriage. The dominant viewpoint stressed that the interpretation of marriage lies within the jurisdiction of the legislature, leaving it to be determined by Parliament. This ruling sparked discussion, with some commending the court’s acknowledgment of LGBTQ+ rights and others expressing disapproval for its failure to establish complete equality.

The ongoing debate surrounding same-sex marriage in India reflects the complex interplay of social change, legal interpretation, and religious considerations. While the 2018 judgment marked a progressive step, the absence of legal recognition for same-sex marriage continues to disadvantage same-sex couples in areas such as inheritance, property rights, hospital visitation rights, and adoption.

The Pink Economy

The growing economic influence of the LGBTQ+ community has given rise to the concept of the "pink economy." This term encompasses the combined purchasing power and economic impact of LGBTQ+ individuals and businesses. Recognizing marriage equality is essential in unleashing the entire potential of this dynamic economic influence.

Market research suggests that the LGBTQ+ community represents a significant and affluent demographic. While reliable data on the size of the Indian pink economy is limited, estimates suggest it could be valued in the hundreds of billions of rupees.

Legal recognition of same-sex marriage can significantly contribute to the growth of the pink economy in several ways. Firstly, it unlocks the potential for a substantial expansion of the wedding industry. Same-sex couples, upon having the right to marry, would contribute to the local economy through spending on ceremonies, venues, catering, and related services. Research conducted in the United States, following the legalization of same-sex marriage, revealed a significant boost to the wedding industry. A study by the Williams Institute estimated that same-sex weddings generated billions of dollars in additional revenue in the first few years after legalisation. Similar trends could be expected in India, with the potential to create new businesses and jobs within the wedding planning and hospitality sectors.

Secondly, recognizing same-sex marriage fosters a more inclusive economic environment, encouraging LGBTQ+ couples to spend more freely. Married couples, regardless of gender, tend to have higher disposable income compared to single individuals. This is due to factors like combined earnings, economies of scale in shared households, and increased financial stability. Studies suggest that married couples exhibit higher spending patterns across various categories, including travel, entertainment, and luxury goods. Legal recognition of same-sex marriage would empower LGBTQ+ couples to fully participate in this trend, contributing to a more robust consumer economy.
Finally, legal marriage creates a more secure financial environment for same-sex couples. Marriage benefits like joint ownership of property, inheritance rights, and spousal social security benefits can incentivize increased investment and financial planning. This, in turn, can lead to increased demand for financial services, wealth management products, and real estate, further stimulating economic growth. Additionally, the increased visibility and acceptance of same-sex marriage can encourage LGBTQ+ entrepreneurs to launch businesses catering specifically to the needs of the community.

This fosters innovation and job creation within the pink economy.
Recognizing same-sex marriage presents a compelling economic opportunity for India. It unlocks the spending power of the LGBTQ+ community, stimulates growth in the wedding industry and consumer spending, and creates a more secure financial environment for same-sex couples. By fostering a more inclusive economic landscape, legalizing same-sex marriage can contribute significantly to the overall economic development of the nation.

Global Context and Success Stories

The movement towards legalizing same-sex marriage has gained significant momentum in recent decades. As of 2024, over 30 countries worldwide recognize same-sex marriage, reflecting a growing global shift towards inclusivity and equality. This trend can be attributed to several factors, including evolving social attitudes, the growing visibility of LGBTQ+ communities, and increasing legal challenges against discriminatory laws.

The economic benefits associated with legalizing same-sex marriage have emerged as a compelling argument for reform. Countries that have legalized same-sex marriage offer valuable success stories in terms of economic growth.

The United States provides a prominent example. Following the Supreme Court’s landmark decision in 2015 legalizing same-sex marriage nationwide, the wedding industry experienced a significant boost. This boost was attributed to increased spending on ceremonies, venues, catering, and related services. Additionally, the increased financial stability and disposable income associated with married couples, regardless of gender, further contributed to economic growth.

Spain presents another successful case study. After legalizing same-sex marriage in 2005, the country witnessed a surge in tourism driven by same-sex couples seeking wedding destinations. According to studies, this influx of tourists translated into increased revenue for businesses within the hospitality, travel, and wedding planning sectors. Furthermore, the legalization of same-sex marriage fostered a climate of inclusivity that attracted talent and entrepreneurs, further stimulating economic activity.

These examples highlight the potential economic benefits associated with legalizing same-sex marriage. By expanding the market for wedding-related services, increasing consumer spending, and creating a more secure financial environment for LGBTQ+ couples, same-sex marriage can contribute to the overall economic well-being of a nation.

However, it is important to acknowledge that the economic impact of same-sex marriage legalization is not limited to the wedding industry and consumer spending. Studies conducted suggest that legal recognition of same-sex marriage can incentivize LGBTQ+ individuals to pursue higher education and careers, leading to a more skilled and productive workforce. Additionally, increased visibility and acceptance can encourage LGBTQ+ entrepreneurship, fostering innovation and job creation within various sectors.

The global trend towards legalizing same-sex marriage is driven not only by social justice arguments but also by compelling economic considerations. Countries like the United States and Spain offer success stories highlighting the positive impact of same-sex marriage on tourism, job creation, and overall economic growth. As India grapples with the question of same-sex marriage legalization, examining these success stories provides valuable insights into the potential economic benefits that such reform could bring.
India’s Legal Landscape

The legal landscape surrounding same-sex marriage in India presents a complex and often contradictory picture. While recent developments have offered some hope for LGBTQ+ rights, significant hurdles remain before same-sex couples achieve full legal recognition of their relationships.
A crucial turning point came in 2018, with the landmark judgment by the Supreme Court of India in the case of Navtej Singh Johar. This five-judge bench unanimously struck down Section 377 of the Indian Penal Code (IPC), a colonial-era provision that criminalised "carnal intercourse against the order of nature," a term interpreted to encompass consensual same-sex relationships. The judgment, widely celebrated by LGBTQ+ rights activists, decriminalised homosexuality and recognized the right to privacy as a fundamental right under Article 21 of the Indian Constitution. This marked a significant step towards greater equality and inclusion for the LGBTQ+ community.

However, the issue of same-sex marriage remains unresolved. Unlike many countries that have legalised same-sex unions through specific legislation, India’s legal framework regarding marriage is governed by a multitude of personal laws based on religion. For instance, the Hindu Marriage Act (HMA), one of the central statutes governing marriage in India, explicitly defines marriage as a union between a "biological man" and a "biological woman." Similar provisions exist within personal laws for other religious communities. This creates a legal barrier for same-sex couples seeking to get married as recognized by the state.

Despite these challenges, legal scholars and activists are increasingly arguing for the right to same-sex marriage based on fundamental rights enshrined in the Indian Constitution. Article 14 guarantees equality before the law and prohibits discrimination on grounds of sex, which some argue can be interpreted to encompass sexual orientation. Additionally, Article 21, which recognizes the right to life and liberty as a fundamental right, has been invoked to claim the right to marry a person of one’s choice, regardless of gender.

In 2023, a petition seeking legal recognition of same-sex marriage was heard by the Supreme Court. While the court acknowledged the rights of same-sex couples, it ultimately declined to legalize same-sex marriage. The majority opinion emphasised that the definition of marriage falls within the legislative domain, leaving it to Parliament to decide on the issue.

This decision, while disappointing for proponents of same-sex marriage, has sparked renewed debate and advocacy efforts. Legal challenges based on the aforementioned constitutional rights are ongoing, and legislative initiatives pushing for same-sex marriage are being explored.

India’s legal landscape regarding same-sex marriage remains in flux. Decriminalisation of homosexuality marked a step forward, but legal recognition for same-sex unions remains elusive due to existing marriage laws and the absence of specific legislation. However, arguments based on fundamental rights and the growing global recognition of same-sex marriage provide a foundation for continued legal advocacy and potential legislative reform in the future.

Economic Benefits of Recognition

While the debate surrounding same-sex marriage in India often focuses on social and legal issues, the potential economic benefits associated with legal recognition should not be overlooked. Recognizing same-sex marriage presents a compelling opportunity to unlock the economic potential of the LGBTQ+ community and contribute to India’s overall economic growth.

Tourism stands as a prominent beneficiary of legalizing same-sex marriage. The global trend of same-sex destination weddings has emerged as a significant economic driver. Countries like Thailand and Taiwan, known for their LGBTQ+ inclusivity, have witnessed a surge in tourism revenue due to same-sex couples seeking wedding destinations. Studies estimate that same-sex destination weddings generate billions of dollars annually in tourist spending. India, with its rich cultural heritage and diverse landscapes, has the potential to become a major player in this growing market. Legal recognition of same-sex marriage would send a powerful message of inclusivity to LGBTQ+ couples around the world, potentially attracting them to celebrate their weddings in India and contributing significantly to the tourism sector.

The hospitality and services industry would also benefit from the legalization of same-sex marriage. Following legalisation in the United States, research revealed a significant increase in demand for wedding-related services such as venue rentals, catering, photography, and wedding planning. This trend is likely to be replicated in India. Recognizing same-sex marriage would create a new market for wedding planners and caterers specializing in same-sex weddings. Additionally, the increased demand for travel and accommodation associated with destination weddings would further stimulate the hospitality sector. This growth would translate into increased job creation and economic activity across various service industries.

Tax revenue generated from marriage-related expenses presents another economic advantage. Married couples, regardless of gender, tend to have higher combined incomes compared to single individuals. With legal recognition, same-sex couples would contribute to the tax base through income taxes, sales taxes levied on wedding expenses, and property taxes associated with marital homes. Studies suggest that legalizing same-sex marriage can lead to an increase in government revenue due to these factors.

The economic benefits extend beyond the immediate gains from tourism and wedding-related services. Recognizing same-sex marriage fosters a more inclusive economic environment, encouraging LGBTQ+ couples to invest and participate more actively in the economy. Studies suggest that increased financial security and stability associated with marriage can incentivize same-sex couples to pursue entrepreneurship, invest in property, and contribute to long-term economic growth.

Recognizing same-sex marriage offers a clear path towards unlocking significant economic benefits for India. It stimulates the tourism and hospitality sectors, generates tax revenue, and fosters a more inclusive economic environment. By embracing this change, India can not only uphold the rights of its LGBTQ+ citizens but also unlock their economic potential, contributing to the nation’s overall economic well-being.

Challenges and Opportunities

The path towards legalizing same-sex marriage in India is not without its challenges. Deep-rooted cultural and societal biases, coupled with a hesitant government stance, pose significant hurdles. However, these challenges present opportunities for education, advocacy, and ultimately, progress towards a more inclusive and economically vibrant nation.

Social resistance remains a major obstacle. Traditional views on marriage and family structures, often intertwined with religious beliefs, can lead to societal resistance towards same-sex marriage. Opinion suggest that while attitudes towards LGBTQ+ rights are gradually shifting in India, a sizeable portion of the population continues to hold conservative views on same-sex marriage. Addressing these biases requires sustained public education campaigns that promote inclusivity and understanding. LGBTQ+ rights organisations and allies can play a crucial role in disseminating information about the realities of same-sex relationships and the positive social and economic impact of legal recognition.

The current government stance on same-sex marriage adds another layer of complexity. Despite the decriminalization of homosexuality, the central government has actively opposed petitions seeking legal recognition of same-sex marriage in court. In the 2023 Supreme Court case, the government argued that the definition of marriage falls within the legislative domain. This lack of proactive action from the government creates a sense of uncertainty and undermines the constitutional rights of LGBTQ+ citizens. However, the ongoing legal challenges and the potential for renewed legislative efforts present opportunities for progress.

The economic opportunities associated with legalizing same-sex marriage offer a compelling argument for change. As discussed earlier, recognizing same-sex marriage can stimulate the tourism and hospitality sectors, generate tax revenue, and foster a more inclusive economic environment. Studies highlight the economic benefits of LGBTQ+ inclusion, which India can tap into by embracing same-sex marriage. By presenting data-driven evidence of these benefits, advocates can build a strong case for reform that resonates not only with social justice arguments but also with economic considerations.

The challenges surrounding legalizing same-sex marriage in India are significant but not insurmountable. Addressing societal biases through education, advocating for legal reform through ongoing court challenges and potential legislative efforts, and highlighting the economic benefits are key strategies for achieving progress. Legalizing same-sex marriage presents an opportunity for India to uphold its constitutional values of equality and inclusion, while simultaneously unlocking the economic potential of a vibrant and growing segment of its population.

Conclusion

The debate surrounding same-sex marriage in India transcends mere social recognition. It presents an opportunity to unlock significant economic benefits and contribute to a more inclusive and prosperous nation. This paper has examined the complex legal landscape in India, the growing global trend towards recognizing same-sex marriage, and the compelling economic arguments that support reform.

The economic benefits of legalizing same-sex marriage are multifaceted. A burgeoning "pink economy" fueled by the spending power of the LGBTQ+ community presents a significant market opportunity. Recognizing same-sex marriage would unlock this potential by stimulating the wedding industry, fostering increased consumer spending by same-sex couples, and creating a more secure financial environment for them. This, in turn, would lead to increased job creation, tax revenue generation, and overall economic growth. Studies conducted in countries that have legalized same-sex marriage offer compelling evidence of these positive economic impacts.

Beyond these immediate economic gains, legal recognition of same-sex marriage fosters a more inclusive environment, aligning India with the growing global trend towards LGBTQ+ rights. This sends a powerful message of acceptance and equality, potentially attracting talent and investment, contributing to long-term economic prosperity.

The social benefits of legalizing same-sex marriage are equally significant. It promotes a society that values diversity and respects the fundamental rights of all its citizens. Research suggests that legal recognition strengthens same-sex relationships, leading to greater stability and well-being for LGBTQ+ couples. Ultimately, it fosters a more just and equitable society, where individuals are free to love and form families on their own terms.
The path towards legalizing same-sex marriage in India requires continued advocacy, education, and potentially, legislative reform. Addressing societal biases through public education campaigns and highlighting the positive social and economic impact of legal recognition are crucial steps. Building a strong case for reform that merges arguments for social justice with data-driven evidence of economic benefits is essential for achieving progress.
In conclusion, recognizing same-sex marriage presents a unique opportunity for India. It aligns the nation with global trends of inclusivity, upholds its constitutional commitment to equality, and unlocks significant economic potential. By embracing this change, India can build a more prosperous, just, and vibrant society for all its citizens.

(Author: Disha, Ph.D. Scholar | Senior Research Fellow, Dr. K. R. Narayanan Centre for Dalit and Minorities Studies, Jamia Millia Islamia, New Delhi, India)

References:

• Banerji, A. (2019, September 6). One year after landmark ruling for LGBT+ rights in India, challenges persist. Reuters. Retrieved March 29, 2024, from https://www.reuters.com/article/idUSKCN1VR255/
• Baron, K. (2022, April 11). Prepping for Pride 2022 & Beyond: Engaging and Booming LGBTQ+ Consumer Landscape. Forbes. Retrieved March 29, 2024, from https://www.forbes.com/sites/katiebaron/2022/04/11/prepping-for-pride-2022--beyond-engaging-a-booming-lgbtq-consumer-landscape/?sh=6f2e3eff7faf
• Bhar, S. (2023, October 27). On LGBTQ+ Issues, India Needs to Look Back to Look Ahead. The Diplomat. Retrieved March 29, 2024, from https://thediplomat.com/2023/10/on-lgbtq-issues-india-needs-to-look-back-to-look-ahead/
• Bird, L. (2022, November 24). Couple privilege: The wealth gap between single and married Americans has more than doubled in the last decade — how do you get ahead when it’s just you? Moneywise. Retrieved March 29, 2024, from https://moneywise.com/life/lifestyle/single-married-wealth-gap
• Forde, K. (2019, June 26). The economic impact of same-sex marriage | LGBTQ. Al Jazeera. Retrieved March 29, 2024, from https://www.aljazeera.com/economy/2019/6/26/the-economic-impact-of-same-sex-marriage
• GDP Of India: Current And Historical Growth Rate, India’s Rank In The World. (2024, March 11). Forbes India. Retrieved March 29, 2024, from https://www.forbesindia.com/article/explainers/gdp-india/85337/1
• Hendricks, S. (2022, January 5). Married people earn more than single individuals. Here’s why. Big Think. Retrieved March 29, 2024, from https://bigthink.com/smart-skills/married-wage-gap/
• Khandelwal, H. (2018, May 27). The power of pink: How LGBTQ community could add to our economy. DNA India. Retrieved March 29, 2024, from https://www.dnaindia.com/just-before-monday/report-the-power-of-pink-how-lgbtq-community-could-add-to-our-economy-2619082
• LGBTQ+ Population by Country 2024. (n.d.). World Population Review. Retrieved March 29, 2024, from https://worldpopulationreview.com/country-rankings/lgbtq-population-by-country
• LGBT Rights in Spain. (n.d.). Equaldex. Retrieved March 29, 2024, from https://www.equaldex.com/region/spain
• Lopez, O. (2020, May 28). Gay weddings boost U.S. economy by $3.8 billion since landmark ruling. Reuters. Retrieved March 29, 2024, from https://www.reuters.com/article/idUSKBN23503D/
• Mallory, C., & Sears, B. (2020, May). The Economic Impact of Marriage Equality Five Years after Obergefell v. Hodges. The Williams Institute, UCLA School of Law. Retrieved March 29, 2024, from https://williamsinstitute.law.ucla.edu/wp-content/uploads/Economic-Impact-SS-Marriage-May-2020.pdf
• McLean, R. (2005, June 30). Spain Legalizes Same-Sex Marriage. The New York Times. Retrieved March 29, 2024, from https://www.nytimes.com/2005/06/30/international/europe/spain-legalizes-samesex-marriage.html
• McNeil, O. (2021, May). I Do (or Don’t): The Impact of Same-Sex Marriage Laws on International Tourism Oliver McNeil May 2021 University of California. UC Berkeley Economics. Retrieved March 29, 2024, from https://www.econ.berkeley.edu/sites/default/files/McNeil_Oliver_HonorsThesis_2021.pdf
• Platero, L. R. (2007, December). (PDF) Love and the State: Gay Marriage in Spain. ResearchGate. Retrieved March 29, 2024, from https://www.researchgate.net/publication/227165488_Love_and_the_State_Gay_Marriage_in_Spain
• Poushter, J., & Kent, N. (2020, June 25). Views of Homosexuality Around the World. Pew Research Center. Retrieved March 29, 2024, from https://www.pewresearch.org/global/2020/06/25/global-divide-on-homosexuality-persists/
• Power and potential of ‘Pink Economy’ in India. (2024, January 18). Wow Entrepreneurs. Retrieved March 29, 2024, from https://wowentrepreneurs.com/power-and-potential-of-pink-economy-in-india/
• Rana, C. (2020, January 26). In Another Realm | India News. The Indian Express. Retrieved March 29, 2024, from https://indianexpress.com/article/india/in-another-realm-lgbtq-community-networking-population-in-india-stigma-around-homosexuality-6235390/
• Reyes, A. T. (2015, July 2). A decade after legalization, same-sex weddings make up less than 2% of total. EL PAÃ S English. Retrieved March 29, 2024, from https://english.elpais.com/elpais/2015/07/02/inenglish/1435826279_516568.html
• Rio, M. D. (2021, June 25). What is the pink economy or pink money? Meet this powerful market that is in full growth. Yahoo! Finance. Retrieved March 29, 2024, from https://finance.yahoo.com/news/pink-economy-pink-money-meet-134500767.html
• Rizwan, H. (2022, June 4). Explained: What Is Pink Money And How Powerful Is It. IndiaTimes. Retrieved March 29, 2024, from https://www.indiatimes.com/explainers/news/what-is-pink-money-how-powerful-is-it-571374.html
• Sobiesiak, M. G. (2023, September 26). The Real Power of LGBT+ Spending. GAY45. Retrieved March 29, 2024, from https://gay45.eu/unveiling-the-future-of-pink-economy-the-real-power-of-lgbt-spending/
• Spain legalises gay marriage | World news. (2005, June 30). The Guardian. Retrieved March 29, 2024, from https://www.theguardian.com/world/2005/jun/30/gayrights.spain
• US LGBTQ Spending Surpasses 1.4 Trillion Dollars in 2021 - According to the Pride Co-op. (2022, March 28). Yahoo Finance. Retrieved March 29, 2024, from https://finance.yahoo.com/news/us-lgbtq-spending-surpasses-1-205100102.html
• Verma, S. (n.d.). The Progressive Disillusionment of Pink Capitalism. International Journal of Law Management & Humanities, 4(2), 1851-1856. http://doi.one/10.1732/IJLMH.26422
• Wolny, N. (2019, June 10). The LGBTQ+ Community Has $3.7 Trillion In Purchasing Power; Here’s How We Want You to Sell to Us. Entrepreneur. Retrieved March 29, 2024, from https://www.entrepreneur.com/growing-a-business/the-lgbtq-community-has-37-trillion-in-purchasing-power/334983
• Zhu, J. Y., & Smieliauskas, W. (2021, April 16). Evidence on the Economic Consequences of Marriage Equality and LGBT Human Rights. Journal of Business Ethics, 178, 57-70. https://doi.org/10.1007/s10551-021-04802-7