Employment Scenario and the Reservation Policy - EPW

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Employment Scenario and                                                                      have welcomed it, claiming it is a good
                                                                                             initiative for the poor, the very first, in

the Reservation Policy                                                                       fact, that includes Muslims under its
                                                                                             umbrella (Bhalla 2019). Some have gone
                                                                                             to argue that if it were to be given at all,
                                                                                             it “would have made more sense to
Paaritosh Nath                                                                               have limited 10 per cent EWS reservation
                                                                                             to those with farming or rural back-

                                              I
In its haste to placate the                        t would be an understatement to say       grounds” (Damodaran 2019).
growing resentment amongst                         that the decision by the Narendra Modi       Alongside the first set of reactions that
                                                   government to introduce the 124th         criticise the amendment for going against
the unemployed youth, the
                                              amendment to the Constitution has tak-         the spirit of social justice, there have been
Indian government has come up                 en people by surprise. The proposed bill       three main grounds for objection. First is
with an ill-informed and loose                (now law) that sought to amend Articles        that this is an attempt by the government
definition of who constitutes the             15 and 16 of the Constitution to provide       to mask its failure in job creation.2 Second,
                                              for the advancement of “economically           the government should first look at fulfill-
“economically weak.” Some of
                                              weaker sections” (EWS) was passed almost       ing the constitutionally mandated reserva-
the major arguments that have                 unanimously in both houses of Parliament       tion policy of those hailing from deprived
been levied against the 124th                 without much debate. Introduced in the         backgrounds. Third, that the criterion se-
amendment to the Constitution                 run-up to the general assembly elections       lected for identifying the poor is flawed.
                                              of 2019, this “pro-poor” amendment pro-           However, none of the opposing voices
are empirically substantiated
                                              vides for 10% reservation in jobs and          have been able to substantiate their claims
in the light of the current state             educational institutions to economically       with solid numbers. This has mainly
of employment generation,                     backward sections in the general category      been due to the lack of any reliable data
particularly in the public sector,            (International Business Times 2019).           on employment that currently exists in
                                                 The element of surprise was owing to        the public domain. As Chandrasekhar
as well as the performance of the
                                              the fact that prior to the cabinet note,       (2019) notes, official employment fig-
state with respect to fulfilling the          reservation for upper castes was not a         ures for recent dates are proving to be dif-
existing reservation policy.                  major issue of debate. In 2010, the S R        ficult to come by, given the suspension of a
                                              Sinho Commission had submitted a re-           number of statistical surveys relied on in
                                              port to the government recommending            the past to gauge trends in employment
                                              the carving out of a category for those        generation. The quinquennial Employ-
                                              classified as Economically Backward            ment–Unemployment Surveys (euss) car-
                                              Class (EBC). However, no further action        ried out by the National Sample Survey
                                              was taken in that direction. While there       Office (NSSO), which up until 2011–12
                                              have been caste-based agitations by dif-       were the most preferred source for esti-
                                              ferent interest groups during the tenure       mating employment trends and patterns,
                                              of this government, much of these agita-       were suspended on the grounds that a
                                              tors demanded their inclusion within the       data set with a higher frequency interval
                                              groups that qualified for reservation in       was required for estimating employment
                                              the existing 49.5% structure (Dangwal          figures in the economy.3 In its place, the
                                              2017). No independent commission or            Labour Bureau’s annual household sur-
                                              enquiry was set up by the Modi government      veys and the quarterly Quick Employment
                                              that would shed more light on who exactly      Surveys (QES) were used to estimate em-
                                              comprised these “economically weak” per-       ployment figures roughly covering the
                                              sons and what the economic and social          period from 2012 to 2017.
                                              conditions that informed the lives of             According to Abraham (2017), the pic-
                                              such persons were like.1 Since the bill was    ture that emerged from these data sources
                                              first announced, there have been varied        was that of an absolute decline of employ-
                                              reactions to this legislation. Some com-       ment in India during this period, with
The author wishes to thank the anonymous
                                              mentators have absolutely decried the          much of it probably in the unorganised
referee for helpful suggestions.
                                              move citing it “as the beginning of the        sector, while the organised sector wit-
Paaritosh Nath (paaritoshnath@gmail.com) is   end for social justice in the form of caste-   nessed a sharp decline in the growth of em-
with the Aman Biradri Trust, New Delhi.
                                              based reservation” (Shinde 2019). Others       ployment. The stagnation in employment
56                                                                                MAY 11, 2019   vol lIV no 19   EPW   Economic & Political Weekly
NOTES
Figure 1: Worker Participation Rates in India, Usual Status, 15 Years                                  Figure 3: Unemployment Rate (%) amongst the Educated Youth
and Above                                                                                        (%)   (15–29 Years) by Usual Status, 1999–2000 to 2015–16
                                                                                                                                                                     Graduate and above
100                                                                                                                                       Higher secondary
                                           Rural males                                                 30
      84.1                    84.6                           80.0                                                                 Youth unemployment
                                                                                             75.7                                                                                      28.2
 80                                                                                                                        24.1       rate average
      75.2                    76.3                           74.1                                                                               21.1
                                           Urban males                                       67.1      20                                                          19.1
 60
      45.2                    48.5                                                                                 14.7
                                                             35.2                                                                       12.7                                    12.5
 40                                                                                          30.2
                                           Rural females                                               10                                                    9.5
      19.7                    22.7                           19.5                                                                                                                      10.3
 20
                                                                                                                          5.4                  5.4                 6.1
                                        Urban females                               14.8
  0                                                                                                     0
1999–2000                   2004–05                      2011–12                 2015–16                       1990–2000             2004–05                 2011–12              2015–16
Source: NSSO 55th, 61st and 68th unit-level records and Fifth Labour Bureau Employment–                Source: NSSO 55th, 61st and 68th Unit level records and Fifth Labour Bureau Employment–
Unemployment Surveys.                                                                                  Unemployment Surveys.
Figure 2: Unemployment Rates, Usual Status, by Social Group (Out of 1,000                              Figure 4: Employees (in Lakh) Excluding Contract Workers, CPSE,
Persons), 2015–16                                     2015–16                                          2006–07 to 2016–17
                                   2011–12                               2015–16 (Principal status)    18
60
                       50          2004–05                          52                      50
50                                                                                                          16.1
                                       44                                                              16
                                                             39                        40
40                                    34                                                                                                             14.5
                                                                               30 27                   14
30
                  24         22 21                   21 20
20
             14                                                                                        12
        9
10
                                                                                                                                                                                          11.3
 0                                                                                                     10
     Scheduled Tribes       Scheduled Castes Other Backward Classes           Others                   2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 2012–13 2013–14 2014–15 2015–16 2016–17
Source: NSSO 61st and 68th unit-level records and Fifth Labour Bureau Employment–                      Source: Public Enterprise Survey, 2016–17.
Unemployment Surveys.
was widespread, affecting almost all the                             issues of the Public Enterprise Surveys is                          of 1,000 Scheduled Caste (SC) persons in
sectors of the economy. Unfortunately,                               used. The Labour Bureau’s Fifth Annual                              2015–16 were available for work but not
both these surveys have not come out                                 EUs data carries information on the                                 employed as against 21 SCs in 2011–12. The
with any new estimates since 2015–16                                 previous year for which comparable                                  corresponding unemployment rates for
and October 2017, respectively.                                      employment data is available for 2015–16,                           Other Backward Classes (OBCs), Sched-
   The only source of employment data                                is also used.5 Even though the most                                 uled Tribes (STs) and “Others” in 2015–
that is available is the Consumer Pyra-                              recent trends are not available, a snap-                            16 was 2.4%, 3.9% and 4%, respectively.
mids Household Survey (CPHS) under-                                  shot of the employment picture in 2015–16                           On the basis of the principal status defi-
taken by the Centre for Monitoring Indi-                             would be useful to put into perspective                             nition (only those who were employed
an Economy (CMIE). As per the CMIE,                                  some of the finer points surrounding                                for six months or more being considered
around 1 crore people had lost their jobs                            the 10% reservation debate.                                         as employed), which is a far more stricter
in 2018 with the total employment falling                                                                                                criterion of measuring unemployment,
to 39.69 crore in December 2018 (Finan-                              Where Are the Jobs?                                                 note that the unemployment rates of
cial Express 2019). Although the CMIE                                Confirming Abraham’s (2017) assessment                              the SCs, STs, OBCs and “Others” become
data set covers more households than                                 of the economy as a whole, worker partici-                          4.4%, 5%, 5.2% and 5%, respectively.
both the quinquennial NSSO and Labour                                pation rates (WPRs) of both males and                               It is to be noted that the difference
Bureau surveys, it is strictly not compa-                            females continued their downward slide                              in the unemployment rates between
rable to these data sets and thus, is of                             since 2004–05, falling even further in                              “Others” and STs comes down to 0
limited use when trying to establish long-                           2015–16. Urban females in 2015–16 had                               when the principal status criterion is
term trends.4 Furthermore, with refer-                               the lowest WPR at 14.8% while the cor-                              taken (as against 1.6%) implying that a
ence to the quota debate, information is                             responding rate for their rural counter-                            far greater share of ST workers were
needed for the employment generated in                               parts was 30.2% (Figure 1). It is to be                             employed in subsidiary forms of em-
the public sector (that too on a caste-                              noted that these figures were obtained                              ployment (usually of an extremely poor
wise segregation basis), which is even                               on the basis of the “usual status” defini-                          quality) when compared to the “Others”
more difficult to capture now with the                               tion of employment which also takes                                 category counterparts.
suspension of the NSSO rounds. Given                                 into account the rather lenient subsidi-                               What is even more worrying is that the
the above limitations and for the pur-                               ary status understanding which consid-                              unemployment rate amongst the youth
pose of highlighting employment data,                                ers as employed even those who were                                 (15–29 years) was higher in 2015–16 than
keeping the quota debate in mind, the                                engaged in an economic activity for just                            it has been in the last 15 years. While only
available information from the annual                                a month in the past 12 months.                                      54 youths out of 1,000 were unemployed
reports brought out by different minis-                                 Consequently, during this period, we                             in 1999–2000, 103 youths now found
tries such as the Ministry of Railways,                              note a considerable rise in the unem-                               themselves to be unemployed in 2015–16.
India Post, Ministry of Personnel, Public                            ployment rates across different social                              Unemployment rates were furthermore
Grievances and Pensions as well as various                           categories (Figure 2). For example, 34 out                          highest for the most educated youth
Economic & Political Weekly     EPW    MAY 11, 2019        vol lIV no 19                                                                                                                      57
NOTES
Figure 5: Number of Employees in SBI, Other Nationalised Banks                              11.3 lakh in 2016–17, which        Figure 6: Number of Employees, Public
and Regional Rural Banks                                   (in lakh)                                                           Administration, 2011–12 and 2015–16                (in lakh)
 Officers       Clerks
                                                                                            is a fall of 4.8 lakh workers                                2011–12       56.6
                          Subordinates                                                                                         60         56
                                                                                            during a period of 10 years                                  2015–16
             9.7                 9.3                9.5             9.1               9.1                                                       40.3                          41.5
                       Total                                                                (Figure 4, p 57). A 10%            40

                                         4.3
                                                                                            reservation in 2006–07
       4.2            3.9                               4.2               4.3                                                  20
   3.7                    3.6                3.4            3.3               3.3           would have amounted to
          1.7                1.7                 1.7            1.6               1.5       1.6 lakh workers, that is,          0
                                                                                                                                            Regular                      Total
     2012–13             2013–14            2014–15        2015–16            2016–17       three times the proposed           Source: NSSO 68th unit-level records and Fifth Labour
                                                                                                                               Bureau Employment–Unemployment Surveys.
Source: Database of the Indian Economy, RBI.                                                10% have already been
with the rates for those educated up to                                lost in  the    past 10 years due to cutbacks in        clerical staff that saw lay-offs of more
“higher secondary” being 12.5% and for government employment.                                                                  than 90,000 persons during this period.
those having an education status of “grad-                                                                                     Officers, on the other hand, have risen in
uation and above” being a staggering Indian Railways: One of the largest pub-                                                  number during the same time period by
28.2% (Figure 3, p 57). It must also be lic sector employers also saw an absolute                                              about 55,000 persons.
noted that the unemployment rate of the decline in employment during this period
educated youth are higher now than they with the total number of employed falling                                              Public administration: Data on those
have been since the turn of the century.                               by around 90,000 persons between 2007                   who are engaged in “Public Administra-
   From the above analysis, the story of and 2017. From Table 1, note that while                                               tion” (NIC: 841) in total was obtained
job creation in the last couple of years has there was an absolute increase in the                                             from the fifth Labour Bureau—EUS and
been a dismal one with WPRs falling and number of Group A and C employees, a                                                   the NSSO’s 68th Employment–Unemploy-
unemployment rates rising across social massive cutback took place with respect to                                             ment Round (Figure 6). It is to be noted
categories. The share of unemployed Group D workers, which led to an overall                                                   that this could also include those engaged
youth, and more specifically, the educated fall in employment figures.                                                         in various levels of administrative duties
unemployed youth is higher now than it                                                                                         in any of the sectors. From the same,
has been in the recent past. There are India Post: Data for those employed by                                                  total employment fell by around 15 lakh
not enough jobs being generated in the India Post could be accessed only from                                                  persons during the five-year time period.
economy which would partly explain the 2012–13 onwards. Between 2012–13 and                                                       The fact of the matter is that in the last
recent agitations by the Jats and Maratha 2016–17, total number of employees fell                                              couple of years, employment has shrunk
youth for being included in caste-based for all the different worker categories                                                at an alarmingly rapid pace in this sector.
reservations for public sector jobs.                                   with the number of gazette officers fall-               Some of the major employers in this seg-
                                                                       ing at a compound annual growth rate                    ment have in fact rescinded a far greater
Public Sector Employment                                               (CAGR) of 5.3% while the number of non-                 number of jobs than that which would
As data, specifically for this sector, is dif- gazetted staff positions fell at a CAGR of                                      have been covered under the 10% quota.
ficult to obtain, reports of some of the -2.3%. In total, there was an absolute de-                                            The new reservations are thus going to be
major employers (in the public sector) cline of more than 18,000 posts during                                                  implemented in a scenario of ever decre-
are assessed. However, the available in- this five-year period (Table 2).                                                      asing pool of jobs. As a result of this, fewer
formation from official reports does not                                                                                       job opportunities are going to be availa-
present a very happy picture.                                          State Bank of India, other nationalised                 ble to all social categories, including the
   According to the Central Public Sector banks and regional rural banks: The                                                  “poor upper castes” irrespective of whether
Enterprises (CPSEs), for example, the same five-year period saw a fall of                                                      or not they are entitled to reservation. A
number of non-contractual employees around 60,000 persons, from 9.7 lakh in                                                    10% reservation of an ever decreasing to-
has fallen from 16.1 lakh in 2006–07 to 2012–13 to 9.1 lakh in the State Bank of                                               tal would effectively leave the supposedly
                                                                       India (SBI), other nationalised banks                   aggrieved sections, on the whole, with a
Table 1: Number of Employees by Group
Categorisation, Indian Railways, 2007–17                               and regional rural banks (Figure 5).                    lower number of jobs than before. Facing
                                    2007         2011     2017         Much of this fall took place amongst the                an acute crisis of employment creation, it
Group A                      7,959     8,848        9,741
                                                              Table 2: Number of Employees, Gazetted and Non-gazetted, India Post, 2012–13 and 2016–17
Group B                      7,816     8,093       6,598
                                                                                                                     2012–13          2013–14        2014–15        2015–16      2016–17
Group C
                                                              Gazetted officers
 (i) Workshop artisan    2,94,865 3,29,253      3,30,142       Group A                                                    665             576            609           614          619
 (ii) Running               89,120    94,850     1,12,955      Group B                                                  3,773           3,333          3,226         3,070        2,948
 (iii) Others             5,14,507 6,55,114     7,68,275       Total gazetted staff                                     4,438           3,909          3,835         3,684        3,567
Group D                                                        Non-gazetted officers
 (i) Workshop artisan     1,36,574    55,942      22,905       Group C (including Group B non-gazetted)             1,68,991         1,65,994       1,65,312      1,60,781     1,52,659
 (ii) Others              3,467,69 1,80,402       57,707       MTS                                                    29,273           30,491         30,148        29,346       28,191
 Total                   13,97,610 13,32,502 13,08,323         Total non-gazetted staff                             1,98,264         1,96,485       1,95,460      1,90,127     1,80,850
Source: Annual Reports and Accounts, Ministry of Railways,     All employees                                        2,02,702         200,394        1,99,295      1,93,811     1,84,417
various years.                                                Source: Annual Reports.

58                                                                                                             MAY 11, 2019         vol lIV no 19      EPW     Economic & Political Weekly
NOTES
Figure 7: Caste-wise Distribution of Employees, Central Public Sector                         Figure 8: Caste-wise Representation in Central Government
Enterprises 2016–17                                                                    (%)    Services, 2017–18, by Group                                                              (%)
100                                                                                            100
                                                                                                                                                             33
  80                            39                                                              80                                           51                            52
                                                               44              53
                       Others                    55                                                        68              62      Others
  60         16                                                                                                                                              14
                                                                                                60
                                27                             22                                                                                            7
 40                                                                            19
                                                 18                                             40                                  ST       23                            22
             16        ST       10                             14                                                          15
  20                                             9                             9                           13
              6        OBC                                                                                                 7        OBC      9               45             8
                                24               19            20              19               20         6
             16        SC                                                                                                  16       SC       17                            17
   0                                                                                                       13
          Managerial         Supervisors       Workers        Workers          Total             0          A               B     C (excluding safai      D (safai         Total
          executives                           skilled        unskilled
                                                                                                                                     karamchari)       karamchari)
Source: Public Enterprise Survey, 2016–17.                                                    Source: Annual report 2017–18, Ministry of Personnel, Public Grievances and Pensions.

appears that the government has tried                          reservation falling short of the constitu-                       Administration” (NIC 841), the share of
to placate the anger of the growing                            tional mandate, while SCs just about                             total SCs employed have fallen from
sections of the unemployed by appeal-                          managing the same. With respect to                               23.3% to 20.1%.7
ing to a commonly held (yet rarely                             Central Government Services (CGS), the                              It becomes not only clear that the
substantiated) notion amongst the up-                          total OBC personnel fell short of the 27%                        public sector has been facing massive
per-caste sections that reservations and                       constitutional mandate (Figure 8). Con-                          cutbacks in total job creation, but also
not the growth trajectory adopted by the                       firming the trends, the majority of Class A                      that there exists severe lacunae with re-
state is the primary reason for their state                    (68%) and Class B (62%) officers be-                             gard to implementing the prevailing
of joblessness.                                                longed to the unreserved sections. It was                        reservation policy in the public sector.
                                                               only in the category of “safai karam-                            Open category personnel still constitute a
Employees in the Public Sector                                 charis” that a much higher share (com-                           majority in the public sector workforce,
According to a recent report published by                      pared to their constitutional mandate) of                        particularly when it comes to Groups A
a leading English news daily, SCs, STs and,                    SCs (45%) and a much smaller share of                            and B (read best quality) jobs. In some
especially OBCs are found to be under-                         non-reserved category persons (33%)                              the Indian Railways and India Post, the
represented in the higher echelons of the                      can be observed.                                                 share of SC personnel has been falling
government—Groups A and B—and most                                The situation of existing caste-wise                          with time. The OBC reservation woefully
of its institutions (Indian Express 2019).                     representation may also be getting worse                         falls short of the prescribed levels across
Detailing information received from gov-                       in certain major segments of India’s                             the key public sector enterprises.
ernment agencies via the use of the right                      public sector. For example, in Indian                               Various caste-based interest groups
to information (RTI) act the report goes on                    Railways, between 2007 and 2017, the                             and political parties have been vocifer-
to describe the current state of reserva-                      share of Group A officers who belong to                          ous of the major gaps in implementing
tions in different segments of the public                      the SC category has actually fallen from                         the existing reservation policy, which
sector. In central universities, RTI data                      15.12% to 13.48%. The situation is worse                         has been raised time and again, and this
shows that 95.2% of professors, 92.9%                          off in India Post where between 2012                             should have ideally formed a crucial
associate professors and 66.27% assistant                      and 2017, the overall share of SC                                component of any debate revolving
professors are from the “Open” category.6                      employees has fallen from 17.38% to                              around the “pro-poor” agenda of the
The share of “Open” category persons                           16.84%. Similarly, comparing data                                state and its policies of affirmative action.
(in the total number of Groups A and B                         obtained from the 68th NSSO Employ-                              What exists, however, is an incomplete
officers) in the NITI Aayog, Union Public                      ment–Unemployment round and the                                  reservation programme for the histori-
Service Commission (UPSC), Comptroller                         fifth EUS in the industrial category “Public                     cally disadvantaged social groups and a
and Auditor General of India (CAG) office
                                                               Table 3: Share of SC and ST Personnel, Indian Railways, 2007 and 2017
and Cabinet Secretariat was found to be                                                                                                           2007
73.84%, 64.76%, 66.79% and 80.25%,                                                                                SC                  SC%                   ST                   ST%
                                                               Group A                                          1,212                15.12                   541                 6.75
respectively. The OBC reservations seem to
                                                               Group B                                          1,311                16.61                   582                 7.38
be the worst hit here with total OBC officers
                                                               Group C                                       1,34,025                14.88                56,024                 6.22
falling way short of the mandated 27%.                         Group D (excluding safaiwalas)                  72,704                16.67                29,658                  6.8
   Data from the CPSE reports presents a                       Group D safaiwalas                              26,996                55.92                 2,605                  5.4
similar story (Figure 7). While “Others”                       Total (excluding safaiwalas)                  2,09,252                15.47                86,805                 6.42
formed 53% of the total employees in                           Total (including safaiwalas)                  2,36,248                16.86                89,410                 6.38
                                                                                                                                                  2017
these public sector enterprises in 2016–17,
                                                                                                                      SC              SC%                      ST                ST%
OBCs formed only 19% of the same. The
                                                               Group A                                             1,314             13.48                    716                7.34
highest level of employees, that is, the
                                                               Group B                                             1,155             17.49                    490                7.42
managers/executives saw the share of                           Group C (includes erstwhile Group D)              226636              17.54               1,03,901                8.04
the non-reserved personnel shoot up to                         Total                                            2,29,105             17.51               1,05,107                8.03
63%, with both ST (6%) and OBC (16%)                           Source: Annual Reports and Accounts, Ministry of Railways, various years.

Economic & Political Weekly       EPW      MAY 11, 2019   vol lIV no 19                                                                                                                59
NOTES

Figure 9: Caste-wise Representation of Employees (%) Engaged in Public                                 Figure 10: Yearly Household Earnings by Social Groups, 2015–16                  (%)
Administration, 2011–12 and 2015–16                                                                                 0.8                0.8               1.6                 3.7
                                                                                                       100
                                                                                                                     6.9                7.1              9.6
40                                                                                        38.5                                                                               16.3
                                                                                   36.9                             15.8               15.1
                                                                                                        80                                              20.0
                                                                      32.2
                                                              30.4                                                  18.8               18.2                                  23.1
30                                                                                                      60                                              21.6
          23.3
                                                                                                                    28.7               30.9                                  19.6
                  20.1                                                                                  40
20                                                                                                                                                      25.6
                                                                                                                                                                             21.2
                                   9.3        9.3                                                       20
 10                                                                                                                 29.0               27.9
                                                                                                                                                         21.7                16.1
                         2011–12                    2015–16
                                                                                                          0
                                                                                                                       SC                 ST             OBC                Others
  0
                                                                                                                Above 6 lakh      2,40,001–6,00,000 1,20,001–2,40,000      90,001–1,20,000
             SC                          ST                     OBC                 Others
                                                                                                                60,001–90,000     up to 60,000
Source: NSSO 61st and 68th unit-level records and Fifth Labour Bureau Employment–                      Source: Fifth Labour Bureau Employment–Unemployment Surveys.
Unemployment Surveys.

hasty, ill-informed amendment based                                          The fear is that this move, in turn, would            share.9 These are ridiculously high fig-
on an upper-caste sentiment that seems                                       set a precedence that would change the                ures which make a mockery of both the
to be exaggerated and lacking in terms                                       manner in which the existing reserva-                 pro-poor argument put forth by the gov-
of concrete empirical evidence.                                              tion policy is understood in the country.             ernment as well as the spirit of social
                                                                             So while the amendment currently does                 justice that informs the current reserva-
‘Creamy Layer’                                                               not touch the existing reservation poli-              tion principle. If the new quota system
In order to identify the poor amongst the                                    cy, it does tend to potentially disrupt the           was to follow the `8 lakh per annum
upper caste sections, a proposed cap of                                      same in the long run. For an excellent                definition, virtually most families falling
`8 lakh family income cap and a five                                         exposition on the same, see Chatterjee’s              under the unreserved status would be
acre land criterion was speculated to be                                     (2019) take on this issue.                            eligible for reservation, irrespective of
adopted (News18 2019). However, the                                             In bringing forth the amendment in                 their cultural, social, economic and edu-
Constitutional (124th Amendment) Act,                                        haste in the current session of Parlia-               cational backwardness (or otherwise).
2019 did not specify any criteria and                                        ment, the Government of India, unlike                    This is not to argue that the state does
explains that the phrase “economically                                       in the past has not constituted an inde-              not need to look after the interests of
weaker sections” as in the act may be                                        pendent committee or expert group that                those outside the 49.5% reservation sys-
notified by the state from time to time                                      would have looked into the rather com-                tem. After all, as noted from Figure 10,
on the basis of family income and other                                      plicated question of who constitutes the              16.1% of all “other” households earn
indicators of economic disadvantage.8                                        poorest of the poor amongst the histori-              only up to `60,000 a year, that is, a sum
This has prompted some to speculate                                          cally advantaged groups (rather than go-              of only `165 a day for an average family
that the cap may also be extended beyond                                     ing for a creamy layer), let alone any dis-           size of roughly 5.5 persons. In fact, 22%
the `8 lakh criterion (Nair 2019). All dis-                                  cussion on the modalities surrounding the             of all households that belong to the low-
cussions on the implementation of the                                        type of assistance that these people could            est earning group as per this data set be-
act, however, continue to revolve around                                     have been provided for by the state. A                long to the non-reserved categories. The
this income figure which has most likely                                     vague and loose definition of what consti-            fact of the matter is that the growth tra-
been taken from the current ceiling of                                       tutes the EWS would have led to yardsticks            jectory followed by the Indian state has
`8 lakh family income that defines the                                       that are ludicrous to say the least.                  been such that it has left a fair share of
creamy layer among the OBCs (Economic                                           As per the last Labour Bureau—EUS in               persons behind; even those belonging to
Times 2017).                                                                 2015–16, 96.3% of all families coming                 the historically well-off segments. As per
   However, this was met with vocifer-                                       under the “Others” category earned less               the latest Global Inequality report pro-
ous criticism, the reasons for which are                                     than `6 lakh per annum, that is, more                 duced by Oxfam, India’s top 10% holds
not too far to see. For one, to base an in-                                  than 7.7 crore families out of the 8.03               77.4% of the total national wealth (ndtv
come criterion on the creamy layer base-                                     crore “Other” households would have                   2019). Anand and Thampi (2016) have
line of another, marginalised section,                                       been entitled for a quota which had a                 shown how there has been a greater con-
tends to delegitimise the entire notion of                                   ceiling of `6 lakh per annum. A `8 lakh               centration of wealth with the top 10%,
“historical and social disadvantage.”                                        income criterion would include a higher               particularly after 2012. This, compound-
Table 4: Share of SC and ST Personnel, India Post, 2012 and 2017                                                                   ed with loss in job creation and crisis in
                                                               2017                                    2012                        the agricultural sector, has led to this
                                          SC            SC %            ST        ST%            SC    SC %       ST        ST%
                                                                                                                                   growing discontent amongst sections of
Group 'A'                                57             9.21              38      6.14         61        10        33      5.41
                                                                                                                                   even the upper castes (Sood 2018). The
Group 'B' (Gazetted)                    425            14.42             157      5.33        413     11.14       151      4.07
Group 'B' (Non-gazetted)                943            16.76             377       6.7        369     11.95       187      6.06
                                                                                                                                   government, in order to placate this re-
Group 'C' (excluding MTS)            24,068            16.37          10,893      7.41     29,325     16.95    12,515      7.23    sentment has brought forth this new
MTS                                   5,566            19.74           2,125      7.54      6,522     21.25     2,298      7.49    amendment, in the process incorrectly
Total                                31,059            16.84          13,590      7.37     36,690     17.38    15,184      7.19    positing reservations as an instrument for
Source: Annual Reports, India Post, various issues.                                                                                poverty alleviation rather than social
60                                                                                                                      MAY 11, 2019   vol lIV no 19   EPW      Economic & Political Weekly
NOTES

justice. The resentment exhibited by cer-               9     There is the added confusion as to how this reser-   International Business Times (2019): “Modi Govern-
                                                              vation will be implemented across different states       ment’s Pro-poor Move: 10% Quota Approved for
tain sections might be founded on valid                       having different criterion, income or otherwise.         Economically Backward Upper Caste,” https://
grievances but their own prognosis is                                                                                  www.ibtimes.co.in/modi-govts-pro-poor-move-
severely misplaced and the state’s solu-                References                                                     10-quota-approved-economically-backward-
                                                                                                                       upper-caste-789514, viewed on 9 January 2019.
tion, that is, a quota of 10% in an ever de-            Abraham, V (2017): “Stagnant Employment Growth:            Indian Express (2019): “Reservation Candidates Are
                                                            Last Three Years May Have Been the Worst,”
creasing pool of jobs applicable to more                    Economic & Political Weekly, Vol 52, No 38,
                                                                                                                       Under-represented in Govt’s Upper Rungs,”
                                                                                                                       Thursday, 9 May, viewed on 21st January 2018,
than 97% of all non-reserved families                       pp 13–17.                                                  https://indianexpress.com/article/educa
seems to make little or no sense. Univer-               Anand, I and A Thampi (2016): “Recent Trends in                tion/reservation-candidates-are-under-repre-
                                                            Wealth Inequality in India,” Economic & Politi-            sented-in-govts-upper-rungs-5540310/
salisation of the public distribution system,               cal Weekly, Vol 5, No 50, pp 59–67.                    Nair, Shalini (2019): “10% Quota for EWS: States
implementation of the Swaminathan                       Bhalla, S S (2019): “10% for EWS Is a Good Initia-             Can Go Past `8 Lakh Annual Income Criteria,”
                                                            tive for Poor—And the Best Policy for Mus-                 Indian Express, 17 January, https://indianex-
Committee recommendations, a compre-                        lims,” Indian Express, 12 January, https://indi-           press.com/article/india/10-percent-quota-for-
hensive study identifying who needs great-                  anexpress.com/article/opinion/columns/quo-                 ews-states-can-go-past-rs-8-lakh-annual-in-
                                                            ta-bill-10-per-cent-bjp-reservation-economi-               come-criteria-5542072/.
er state assistance and most importantly a                  cally-weaker-sections-5534313/.
                                                                                                                   NDTV (2019): “Davos 2019: Richest 1% Indians
greater impetus towards employment                      Chandrasekhar, C P (2019): “The Failed Promise of              Hold 51% Wealth: Oxfam Boss Explains Why,”
                                                            Employment,” 17 January, https://www.net-
generation appear to be obvious starting                    workideas.org/news-analysis/2019/01/the-
                                                                                                                       21 January, YouTube video, https://www.you-
                                                                                                                       tube.com/watch? v=7SXktQTX88g.
points. Ultimately, to bring these sec-                     failed-promise-of-employment/.
                                                                                                                   NITI Aayog (2017): Report of the Task Force on
tions back into the “mainstream,” the                   Chatterjee, P (2019): “The 10% Reservation Is a Cyn-
                                                                                                                       Improving Employment Data (Draft Version),
                                                            ical Fraud on the Constitution,” Wire, 18 Janu-
mainstream itself needs to be re-imagined.                                                                             Government of India.
                                                            ary, https://thewire.in/government/the-10-res-
                                                            ervation-is-a-cynical-fraud-on-the-constitution.       News18 (2019): “In Surprise Move before Polls, Cabinet
                                                                                                                       Approves 10% Reservation for Economically
Notes                                                   Damodaran, H (2019): “A Quota for Farmers,”
                                                                                                                       Weaker Upper Castes,” 8 January, https://www.
                                                            Indian Express, 14 January, https://indianexpress.
1   Interestingly, the S R Sinho Commission                                                                            news18.com/news/india/months-before-polls-
                                                            com/article/opinion/columns/a-quota-for -farm-
    had identified 13 parameters to defi ne who                                                                        modi-cabinet-approves-10-reservation-for-eco-
                                                            ers-job-education-reservation-ews-5536650/.
    would fall under this category—a recommen-                                                                         nomically-backward-upper-castes-1994275.html.
    dation not taken up by this government. See         Dangwal, Sandhya (2017): “Jat Agitation: Stir De-
                                                            manding OBC Category for Community to Re-              Sharma, Nidhi (2019): “Reservation Needs to Be on
    Sharma (2019).                                                                                                     Socio-economic Criteria: Major General (Retd) S R
                                                            sume in 19 Districts of Haryana Today,” 29 Jan-
2   It is interesting that this issue managed to set        uary, https://www.india.com/news/india/jat-                Sinho,” 11 January, https://economictimes.india-
    aside another highly contested debate that was          agitation-stir-demanding-obc-category-for-co-              times.com/news/politics-and-nation/reservation-
    going on in policy circles—on the quantum               mmunity-to-resume-in-19-districts-of-harya-                needs-to-be-on-socio-economic-criteria-major-
    and nature of job creation that had taken place         na-today-1791951/.                                         general-retd-sr-sinho/articleshow/67480343.cms.
    in the economy during the current regime. The       Economic Times (2017): “Creamy Layer Income Cap            Shinde, R (2019): “Three Reasons the 10% Quota
    two debates, I would argue here, feed into each         for OBCs Raised to `8 Lakh per Annum,” 13                  Bill Is More Than an Election Gimmick,”
    other. In fact, as soon as the government came          September, https://economictimes.indiatimes.               11 January, https://thewire.in/caste/upper-caste-
    out with plans of a constitutional amendment,           com/news/politics-and-nation/creamy-layer-                 reservation-more-than-election-gimmick.
    various leaders of the opposition fired back,           income-cap-for-obcs-raised-to-rs-8-lakh-per-           Sood, Jyotika (2018): “India’s Deepening Farm Crisis:
    stating that through the above the government           annum/articleshow/60497593.cms.                            76% Farmers Want to Give up Farming, Shows
    was merely trying to divert attention away          Financial Express (2019): “1 Crore Jobs Lost in 2018:          Study,” https://www.downtoearth.org.in/news/
    from the fact that it has failed to deliver in          Unemployment Rate Hits 27-month High in                    indias-deepening-farm-crisis-76-farmers-
    terms of its promise of employment growth.              December, Says CMIE; Key Things to Know,” htt-             want-to-give-up-farming-shows-study-43728.
    The latter, coupled with the massive agrarian           ps://www.financialexpress.com/economy/1-cro-           Vyas, Mahesh (2019): “Surveying India’s Unemploy-
    distress in the past couple of years, it was ar-        re-jobs-lost-in-2018-unemployment-rate-hits-27-            ment Numbers,” Hindu, 9 February, https://www.
    gued, had forced the government to move for             month-high-in-december-says-cmie-key-things-               thehindu.com/opinion/lead/surveying-indias-
    this amendment.                                         to-know/1435748/, viewed on 21 January 2019.               unemployment-numbers/article26218615.ece.
3   See the “Report on the Task Force on
    Improving Employment Data,” 2017 (NITI                             N
                                                                    IO
    Aayog 2017).                                                   S                      EPWRF India Time Series
4   A difference between the CPHS and the NSSO
                                                               PAN
    surveys is the reference period of the employ-          EX                               (www.epwrfits.in)
    ment status of a respondent. While the NSSO
    tries to capture the status for an entire year
    and for a week, the CPHS captures the status as                          Banking Indicators for 653 Districts
    on the day of the survey. This could be as one of
    four factors: employed; unemployed willing to            District-wise data has been added to the Banking Statistics module of the EPWRF India Time
    work and actively looking for a job; unem-               Series (ITS) database.
    ployed willing to work but not actively looking          This sub-module provides data for 653 districts for the following variables:
    for a job, and unemployed but neither willing
    nor looking for a job. See Vyas (2019).                        ● Deposit–No. of Accounts and Amount, by Population Group (rural, semi-urban, urban
5   With that of the previous NSSO Employment–                       and metropolitan)
    Unemployment rounds. In this study we have                     ● Credit (as per Sanction)–Amount Outstanding, by Population Group
    used data obtained from the 68th, 61st and
    55th NSSO EUSs.                                                ● Credit (as per Utilisation)–No. of Accounts and Amount Outstanding, by sectors
6   Reservations are applicable at the level of as-                ● Credit-Deposit (CD) Ratio
    sistant professors. This may also include SCs,                 ● Number of Bank Offices–By Population Group
    STs and OBCs who have not availed the bene-
    fits of reservation.                                     The data series are available from December 1972; on a half-yearly basis till June 1989 and
7   These figures would also include those who are           on an annual basis thereafter. These data have been sourced from Reserve Bank of India’s
    employed as casual and certain categories of             publication, Basic Statistical Returns (BSR) of Scheduled Commercial Banks in India.
    contractual workers for whom reservation
                                                             The EPWRF ITS has 18 modules covering a range of macro-economic, financial and social
    might not be applicable.
                                                             sector indicators on the Indian economy.
8   It was later clarified by Social Justice and
    Empowerment Minister Thaawarchand Gehlot                 For more details, visit www.epwrfits.in or e-mail to: its@epwrf.in
    that no such cap was final.

Economic & Political Weekly   EPW   MAY 11, 2019   vol lIV no 19                                                                                                      61
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