Private Sector Reservation - The Stepping Stone to Inclusive Growth

1) It will lead to Companies shutting down or leaving India To think that simply passing one law relating to recruitment of personnel will lead to companies shutting down and leaving the country is oversimplification and a naive assumption. This is the argument put forward by all the people who are against this essential step needed to bring about inclusive growth in the country and ensure equitable distribution of wealth across all sections of the society. Following are the reasons why it won’t hurt the Private Companies at all: 1) Companies already have to comply with several laws made by the government like Labour laws, which regulate hiring, firing, work hours etc. Then there are Minimum Wages Act, Companies Act, Factories Act, Maternity Benefits Act, Environment Protection Act and of course, Taxation laws like GST and laws mandating CSR. Private Sector Reservation will be just like any other rule made by the government, that the companies will have to comply with. There h...

India has come a long way since the Socialist era, with the introduction of LPG reforms in 1990’s. India is today the world’s fastest growing economy, but this economic boom has also resulted in increasing economic inequality in India. India is one of the youngest countries with a large chunk of population in early youth, but unless this youthful energy is properly channelized, our Demographic Dividend would end up turning into a Demographic Disaster. With this, there seems to be no doubt that Private Sector Reservation is a thing whose time has come. The following arguments justify the need for the same. 1) Shrinking Government jobs : According to the Ministry of Personnel, Public Grievances and Pensions data, direct recruitment in government jobs declined by 89% between 2013 and 2015. Most of the government jobs today in Group C and D are are being outsourced to Private Contractors, while the Group A and B jobs are already small in numbers and even they are shrinking. Apart fr...