Tuesday, April 04, 2006

Political gamesmanship over India’s reservations policy could cast a shadow over India’s ambitions of emerg¬ing as a global economic power in the 21st

Since then, political parties, including the allies and other social organizations, have been insisting that the government introduce legislation that would seek to reserve jobs for backward classes in the private sector as well. The private sector, on its part, has cautioned through various industry forums that such a move could affect the high level of competence achieved by the private sector over the past many years.

Their concern seems justified if one looks at the level of incompetence that public sector companies suffer due to the indiscriminate use of reservations. Some economists have even held reservations responsible for Indian economy’s slow growth in the first three decades after independence. During the first six plan periods, when the State enjoyed Soviet style monopoly, its economy grew by around 3.5% (sardonically termed as the ‘Hindu rate’ of economic growth).

For complete IIPM article click here

Source:- IIPM Editorial, 2006

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