India’s Ever-Increasing Reservations

Context: Precise implementation of reservation policies in India is hampered due to the multiple Constitutional amendments, state-level legislation and legal uncertainties and infirmities about court judgments.

Evolution of Reservation Policy in India

• Constitutional necessity: Article 15 (4) enabled reservations for the socially and educationally backwards.
• Subsequent extension: Reservations were initially intended to last for ten years but have been subsequently extended every ten years. 
• Additional reservation: 10% reservation for Economically Weaker Sections (EWS) has been added apart from reservations for SCs, STs and OBCs in publicly-owned companies and education (add up to 49.5%).

Issues with Reservation Policy in India

• Overlapping: EWS reservation may not necessarily raise total reservations to 59.9% due to overlap between EWS and SCs-STs-OBCs. 
• Violation of ceiling provision: (stipulated by 1993 nine-judge SC judgment) due to the EWS and domicile-based reservations are likely to violate 50% ceiling.
• For example, Tamil Nadu had total reservations of up to 69% (even before EWS) and has promised for 75% quota for locals.
• Complex implementation: domicile-based reservations (due to unclear legal status) in addition to existing reservations and reservation in educational institutions has led to interminable lawsuits. 
• For instance, in Allahabad University, implementation of reservation on a department-specific basis could end up with over 50% if reservation is at the university level.
• Issues in identifying creamy layer: (for OBC reservation) identifying income of self-employed and migrant workers for creamy layer criteria (annual incomes > Rs 8 lakh) is difficult.
• Breaks the labour market: state-level reservations could break up the Indian labour market into economically inefficient silos. (Migrant workers may fail to prove their residency in other states)
• Politically and emotionally sensitive issue: for voters and political parties thereby, difficult to amend.
• Dilutes standards of governance and performance at the central, state and municipal levels and the quality of instruction in educational institutions.
• 80% of the National Association of Software and Service Companies affiliated companies feel that reservation policies in Haryana will hurt businesses and impact future investment plans.

Conclusion: India needs to gradually wean itself off all forms of reservations while providing adequate financial support to those who are socially and educationally backward.