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This is an archive article published on April 8, 2006

Reservation shadowlines

India Inc feels quotas are just not the best way to bridge the economic divide, report Dev Chatterjee & Sudipta Datta

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HRD Minister Arjun Singh’s plan to reserve half of the seats in all government educational institutions for backward classes has re-ignited the debate over reservations in the private sector, inequality in a fast-growing economy, and just what role India Inc can play.

While the corporate world has reacted sharply to the proposal—which will impact prestigious management and engineering institutions like IITs and IIMs, among others—it is also keen to participate in this sensitive debate. That’s because India Inc realises that there it’s part of a political mandate of the UPA Government, with Prime Minister Manmohan Singh announcing that reservation for backward classes in private sector jobs is ‘‘an idea whose time has come’’.

While opposing the idea of reservations, in education as well as in the private sector, industry leaders have been engaging the government to come out with solutions that would address the issue of ensuring that the ‘Other Indians’ do not get ‘left behind’.

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That’s why, last November, senior industrialists—including Ratan Tata and Narayana Murthy—wrote to the government. ‘‘We commit to expand our current activities for disadvantaged persons with regard to scholarships, company-run private schools, partnership with government schools, vocational training and other development programme,’’ the letter said.

The CEOs went on to say that they were ‘‘reassured to learn from the Government that it had no intention of resorting to legislative action to impose a statutory obligation of reservations on industry’’.

STRONG WORDS

The reactions to what has been dubbed as a blatant pre-election move have been strong. ‘‘Half of the country has gone to SEZs (special economic zones) while the other half to the reservations… Where will the meritorious students go?’’ asks R. Gopalakrishnan, Executive Director of Tata Sons.

But while protesting against a policy that will impede merit and reduce competitiveness, India Inc says it sees the problem. ‘‘No sensible Indian would like to see any Indian remain poor, uneducated and without the opportunity to move up.

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However, this should not be at the cost of the country as a whole,’’ says Rahul Bajaj, Chairman of Bajaj Auto.

With quality of students dipping from the IITs and IIMs, India Inc says it will be difficult for them to hire future corporate leaders. Adds Ratan Tata, Chairman of Tata Group, on job reservation: ‘‘I do not think this is a right way to go forward… While uplift of socially-backward classes is important, merit is an important aspect and should not be compromised,’’ he adds.

Even the champion of lower castes Dr Babasaheb Ambedkar had sought reservation for a limited time and not forever. ‘‘Reservation is timebound, it had meaning years ago. But to keep extending it and not letting merit have its way is not a good thing. Have we thought through this?’’ says Anu Aga, former Chairperson of Thermax.

THE WAY FORWARD

With reservation creeping into each and every sphere, corporate India suggests that more specialised schools like Kendriya Vidyalayas and Navodaya Vidyalays should be opened for the backward classes.

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‘‘We should start from the school level,’’ says Gopalakrishnan. Agrees Bajaj: ‘‘The government and the private sector must immediately start a nationwide process of education, training and skill development of those who need the same so that at least tomorrow they get employment on merit and work with their heads held high.’’

These are no easy solutions. ‘‘The way for government to provide education to all is by building new capacity in education, and there are no short cuts to achieve this end,’’ says Saurabh Srivastava, a venture capitalist and former chairman of infotech firm Xansa.

As the Manmohan Singh Government toys with the idea of Mandalisation of India, corporate India is looking to take on the world. There are workable solutions to inequality, says India Inc, but reservation is not one of them.

(With Pragya Singh)

VOICES

How can we approve of something which is bound to create resentment among others? Have we thought through this?

Anu Aga, Director, Thermax

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This move will destroy the one thing that India is known for globally—its talent. It seems as if we have decided to shoot ourselves in the foot.

—Saurabh Srivastava, Chairman, Xansa

This is not done. It is a highly retrogative step. Tomorrow other sections of the society will ask for similar reservations, then what will we do?

R. Gopalakrishnan, ED, Tata Sons

I do not want to think of what will happen in case there’s a backlash by the non-reserved categories of people. Already I find rumblings of discontent in the faculty and students of the IITs and IIMs.

Rahul Bajaj, Bajaj Auto

It (reservation) is bad… In some way, it will tend to divide the country into different groups

Ratan Tata, Chairman, Tata group

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