The global economic shifts in 1991 compelled the Indian economy to adopt liberalisation, privatisation, and globalization. As part of this economic reform policy, India opened its market to multinational companies and foreign direct investments, leading to the partial or full privatisation of many public sector industries, including education, health, railways, and banking. Unfortunately, this had a negative impact on marginalised communities. While the constitution of India guarantees reservations for backward and marginalised groups in public institutions, the transfer of the public sector into the hands of the private sector and the involvement of private entrepreneurship in the social sector have disproportionately affected these communities.
The intentional exclusion of Dalits, STs, minorities, women, and OBCs by the private sector has led to a reduction in public sector jobs, increasing the unemployment percentage among Dalits, OBCs, and other marginalised communities. According to a 2021 Reserve Bank of India report, Employment in Public and Organised Private Sectors, more than 20 lakh jobs were lost in the public sector as a result of privatisation between 1991 and 2012. With 50 per cent reservation in the public sector, it would mean that at least 10 lakh families belonging to marginalised communities lost their opportunities.
Despite receiving subsidies, loans, grants, land, and other resources from both state and central governments, multinational companies and private educational institutions have failed to implement constitutional provisions of economic and social justice by providing employment opportunities to subaltern communities.
The Indian Constitution, under Fundamental Rights and Directive Principles of State Policy (DPSP), allows affirmative action provisions for backward and marginalised communities. Article 16(4) of the Indian Constitution enables governments to adopt reservation policies to provide employment opportunities to promote equality and justice. However, many scholars and politicians expressed contradictory and different views on including the private sector under the same clause.
The issue regarding implementing reservations in the private sector was widely discussed, and a private member bill was also introduced by D Raja from the CPI in the Rajya Sabha; however, it was not considered seriously by the major political parties. Even the National Commission of Backward Classes has several times insisted the Union government introduce a bill on 27% job reservations for other backward classes in the private sector. Along with this, several NGOs and socio-economic organisations also demand reservations in the private sector.
Corporate engagement and private sector participation in generating employment opportunities and wealth are crucial for India’s development and economic growth. The corporate sector is more interested in schemes related to Corporate Social Responsibility (CSR) to avail of tax benefits, goodwill among the government and public, as well as visibility and recognition on ethical grounds. In the corporate world, CSR is considered a work of charity, whereas adopting affirmative action is an act of empowerment, goes a long way in bringing structural changes to society, and aids in upward economic mobility among the marginalized. Some private agencies, like the Tata Group, have successfully incorporated positive discrimination into their corporate policies, reaping good dividends.
Affirmative action or positive discrimination is globally seen to benefit society in many ways, like promoting diversity, cross-ethnic interaction, fairness in the process of recruitment and admission, gender equity, social mobility, peaceful coexistence, promoting growth, etc. Affirmative action ensures that there is no deviation from the general principle of natural justice, which enables equal opportunity for all as enshrined in India’s Constitution and goes a step further in accepting responsibility towards undoing historical injustices and national responsibility. It goes a long way as a harbinger of democracy. It also aligns with the UN sustainability development goals, which aim for no poverty, zero hunger, good health, gender equality, quality education, decent work, reduced inequality, sustainable cities and communities, etc. In this context, affirmative action is not just for national growth but for the overall progress of humanity worldwide.
While those who have enjoyed privileges over generations vociferously support meritocracy, providing reservations in the private sector and enhancing them in the public sector is the best way to help marginalised communities climb the socio-economic ladder to ultimately establish an egalitarian society in line with the values enshrined in the Constitution.
(Kumar is head of the Dept of International Relations, Peace, and Public Policy, and Newman is principal of St Joseph’s Evening College and Associate Professor, Dept. of History, St Joseph’s University, Bengaluru)