Iqbal confronts Kant's verdict that the realities religion cares about lie beyond possible knowledge, and reverses it: citing Ibn ʿArabī, he argues that God may be the percept and the world the concept, and that Kant's exclusion holds only if the normal level of experience is the only level. He then defends the seriousness of religion against science by insisting that the ego's contact with Reality is achieved through the deed rather than the concept — a stake of the whole person that no 'as-if' fictionalism can match.
Section 1 mapped religious life into three developmental periods — Faith, Thought, and Discovery — and defined the lecture's concern as religion in the third sense: direct experiential contact with Ultimate Reality, reframed not as life-denying mysticism but as a form of radical empiricism older and deeper than modern science. Section 2 now takes up the philosophical obstacle that stands in the way of this claim: Kant's denial that metaphysics — and by extension, knowledge of the realities in which religion is interested — is possible.
The section is the longest and most philosophically dense in the lecture, advancing through five major movements. First, Iqbal states Kant's position: the thing-in-itself falls beyond the boundaries of experience, and its existence cannot be rationally demonstrated. Second, he notes but sets aside the possibility that modern physics (matter as 'bottled-up light waves,' Heisenberg's indeterminacy) might rehabilitate rational theology — this is not the route he wishes to take. Third, he executes the lecture's central philosophical manoeuvre: the reversal of Kant. Kant's verdict holds only if we assume that the normal level of experience is the only level. But what if the position is reversed? What if, as Ibn ʿArabī observed, 'God is a percept; the world is a concept' — what if it is the external world, not God, that is the intellectual construction? Fourth, Iqbal addresses the objection that non-conceptual experience cannot yield universal or communicable knowledge, and transforms this objection into a positive discovery: the incommunicability of religious experience reveals the ego's ultimate nature as an individual deeper than its conceptually describable habitual selfhood. Fifth, he draws the consequences for the relative seriousness of science and religion as modes of engaging Reality: science deals in symbols and conventions and can afford to treat its objects as fictions; religion, which stakes the entire career of the ego, cannot.
The section closes by asserting the legitimacy of the question 'Is religion possible?' on the grounds that 'the evidence of religious experts in all ages and countries is that there are potential types of consciousness lying close to our normal consciousness.' This sets up Sections 3–5, which will argue for the timeliness of the question from scientific, cultural, and historical perspectives.
The philosophical architecture of this section is the foundation on which the entire lecture rests. If Iqbal's reversal of Kant fails — if the normal level of experience really is the only level — then the lecture's argument collapses. Everything that follows depends on the possibility that there are 'other levels of human experience capable of being systematized by other orders of space and time.'