UP decision on voluntary reservation evokes mixed response from industry

The Uttar Pradesh government's proposal of voluntary reservation in private sector has evoked mixed reactions from industry.

The fact that the proposal talks of voluntary participation has been welcomed by all industry chambers. However, there are concerns over the long term impact of this move.

"The effectiveness of this measure, for those who voluntarily choose to avail concessions from the state and reservation thereof, will depend on the availability of qualified candidates for an array of positions. For this to happen successfully, a massive training and skill formation movement across the State would have to be initiated simultaneously, targeting the SC/ST, OBC, minorities and economically backward members of the upper caste," stated a Ficci release today.

"It will not always be possible that the required number of jobs be taken up from only one segment of people. This would mean that quite a number of jobs will not be taken. We cannot afford that. Moreover this will benefit only a minuscule percentage of population as organised employment forms only eight per cent of the total employment in the country," added a Ficci functionary.

However, the Associated Chamber of Commerce and Industry is of the view that this will help government in furthering its agenda of inclusive growth.

"It will not in any way make the industry less competitive because there is no dearth of talent from any sections of the society," said Venugopal Dhoot, president, Assocham.

"The Confederation of Indian Industry (CII) needs to go through the entire draft before responding," said a CII functionary.

The proposal talks of giving tax benefits to those private firms that introduce reservation for backward classes. Of the 30 per cent of reservation in private sector jobs which the the proposal talks of, 10 per cent each will be reserved for scheduled caste and other backward caste and 10 per cent for economically weaker sections from the upper castes.