Reservation in India is the process of setting aside a certain percentage of seats (vacancies) in government institutions for members ofbackward

and under-represented communities (defined primarily by caste and tribe). Reservation is a form of quota-based affirmative action. Reservation is governed by constitutional laws, statutory laws, and local rules and regulations. Scheduled Castes (SC), Scheduled Tribes (ST) and Other Backward Classes (OBC) are the primary beneficiaries of the reservation policies under the Constitution with the object of ensuring a "level" playing field. The reservation system has received a mixed response from Indians since its inception. It has been praised for diminishing the gap between the upper and lower castes by allowing the latter to enjoy the further increased opportunities as the former in jobs, education and governance by alloting seats exclusively for them. It has also been criticised for discouraging a merit-based system and encouraging vote bank politics.

Background of caste based reservation[edit]

A common form of past discrimination in India is the practice of untouchability. Scheduled Castes (SCs) [1][2] are the primary targets of the practice, which is outlawed by the Constitution of India. An untouchable [3] person is considered "impure or a lesser human." During the Vedic period, the varna system was used.However, it was based on the profession one chose rather than on the birth. Also, it was not elitist during the vedic times. Implying, all castes were considered equals. The system consists of four ranked varnas. A person's varna was defined by his or her socioeconomic duties (broadly classified into four classes or Varnas). These duties were either voluntarily performed or were assigned by the local administrator one's varna was initially not defined by one's birth into any particular family. However, over the centuries, especially during the 11th century on-wards, the [4] system has changed so that one is born into a varna based on lineage. The primary stated objective of the Indian reservation system is to increase the opportunities for enhanced social and educational status of the underprivileged communities and thus enable them to take [5] their place in the mainstream of Indian society. The reservation system exists to provide opportunities for the members of the Scheduled Castes and Scheduled Tribess to increase their political representation in the State Legislatures, the Executive Organ of the Union (Centre) and States, [6] the labour force, schools, colleges, and other public institutions. The Constitution of India states in article 16(4): "Nothing in [article 16] or in clause (2) of article 29 shall prevent the State from making any special provision for the advancement of any socially and educationally backward classes of citizens or for the Scheduled Castes and the Scheduled [7] Tribes." Article 46 of the Constitution states that "The State shall promote with special care the educational and economic interests of the weaker sections of the people, and, in particular, of the Scheduled Castes and the Scheduled Tribes, and shall protect them from social injustice and all forms [8][9] of exploitation." In 1982, the Constitution specified 15% and 7.5% of vacancies in public sector and government-aided educational institutes as a quota reserved for the SC and ST candidates respectively for a period of five [10] years, after which the quota system would be reviewed. This period was routinely extended by the succeeding governments. The Supreme Court of India ruled that reservations could not exceed 50%

(which it judged would violate equal access guaranteed by the Constitution) and put a cap on [11] reservations. However, there are state laws that exceed this 50% limit and these are under litigation in the Supreme Court. For example, the caste-based reservation stands at 69% and the same is applicable to about 87% of the population in the State of Tamil Nadu. In 1990, Prime Minister V. P. Singh announced that 27% of government positions would be set aside for OBCs in addition to the 22.5% already set aside for the SCs [12] and STs.

Present caste-based reservation system of Union Government[edit]

Category as per Government of India Reservation Percentage as per Government of India

Scheduled Castes (SC)

15%

Scheduled Tribes (ST)

7.5%

Other Backward Classes (OBC)

27%

Total constitutional reservation percentage 49.5%

General (Open)

50.5%

The idea of reservation of jobs for backward castes in the private sector has stirred a hornet's nest.
Supporters of job quotas say Indian democracy cannot afford inequality and needs equitable growth of all sections of society. They also say since the public sector has not been generating enough employment, the so-called backward castes must be accommodated in the private sector through quotas. Those opposed to the idea feel such restrictions will affect corporate India's efficiency. The private sector employs people on the basis of merit and not caste, they argue.

The highly emotive issue is now the subject of hot debate. So what do these job reservations mean? rediff.com finds out. What are job quotas in the private sector? The Common Minimum Programme of the Congress-led United Progressive Alliance suggests that there be job reservations for scheduled castes and scheduled tribes in the private sector. The CMP says it is 'very sensitive to the issue of affirmative action including reservations' in the private industry sector. Sengupta for private sector job quotas Govt to pursue job quota in private sector: Paswan Videocon, Taj, LG face jobs quota 'It (the government) will immediately initiate a national dialogue with all political parties, industry and other organisations to see how best the private sector can fulfil the aspirations of scheduled caste and schedule tribe youth,' says the CMP. The proposal has met with opposition from Indian industry, which feels that if implemented it will render domestic industry globally uncompetitive. Already, job reservations for backward castes exist in the government sector. But this is the first time there has been talk of extending quotas to the private sector -- which has made the idea controversial. Why does the UPA want quotas in private sector when it already exists in the government sector? Public sector companies, where reservation has been in existence for a while now, have all been implementing Voluntary Retirement Schemes. Jobs in PSUs are not growing and politicians feel the number of job opportunities available for the socalled backward castes are dwindling. The logic behind job quotas in the private sector is that scheduled castes and scheduled tribes will have greater opportunity or economic and social mobility. How serious is the government about this? The UPA was serious enough to put in a reference regarding reservations in the private sector in the President's speech on June 7. Whenever a new government is sworn in, the President addresses a joint sitting of Parliament on the new government's main policy proclamations.

What exactly did President Kalam say? 'The government is sensitive to the issue of affirmative action including reservations in the private sector and it is committed to faster socio-economic and educational development of the scheduled castes and the scheduled tribes. My government will initiate a dialogue with political parties, industry and other bodies on how best the private sector can fulfill the aspirations of scheduled castes and scheduled tribes.' Haven't quotas for scheduled castes and scheduled tribes been around for a while? Yes. But only in the government sector. The private sector has never been brought under the reservation regime. In 1990, Parliament passed a law reserving more than a quarter of all government jobs for the so-called backward castes. The private sector has, however, always been free to choose who it hires. What do corporates think of it? Corporates are terrified of the idea. Industry says while it supports the idea of a solution that will help the so-called backward castes move upward socially and economically, implementing job quotas in the private sector is not the answer. If Indian industry has to be globally competitive, companies say they should have the freedom to hire based on merit, rather than any other reason. Will this scare off foreign firms? Most likely, say economists. Any kind of reservation affects efficiency, which in turns adversely impacts growth. If foreign enterprises do not have the freedom to choose who they can hire and are forced to take in people just to fulfill quotas then they will not come to India as they cannot remain competitive and maintain quality, the economists say. How soon is this likely to be implemented? Right now, the first step being suggested is a dialogue between politicians, industry and trade unions. If a consensus is arrived at, the government can draft legislation and then get it passed in Parliament. The entire process will take a considerable amount of time. One can safely say that job quotas won't be implemented in the private sector in the next couple of years.

Are only a few politicians at the Centre pushing for this? Currently yes. But since the idea of reservations has great potential to garner votes, politicians across the spectrum are scared of speaking out against it. In fact, states like Maharashtra now want to take up the idea of reservations in the private sector aggressively.