New Delhi— Surjit Bhalla, former Executive Director at the International Monetary Fund (IMF) representing India, Bangladesh, Bhutan, and Sri Lanka, has strongly criticized the proposal to implement caste-based reservations in the private sector, calling it “one of the worst ideas out there.”
His remarks come amid growing political debate over Leader of the Opposition (LoP) Rahul Gandhi’s call to expand affirmative action beyond government employment. Bhalla warned that enforcing quotas in private enterprises could disrupt labor markets, discourage investment, and weaken merit-based hiring.
“I hope the BJP doesn’t follow Rahul Gandhi’s lead on this,” Bhalla said, expressing concern that such a policy could have lasting negative consequences for India’s economic competitiveness.
Rahul Gandhi has been a vocal advocate for removing the current 50 percent cap on reservations and extending them to private institutions. He argues that with the public sector shrinking, affirmative action must evolve to ensure adequate representation for marginalized communities in the country’s primary employment sectors.
His position is part of a broader campaign that includes support for a nationwide caste census to guide policy decisions.
While the ruling BJP has not officially backed private sector reservations, its recent endorsement of caste-based data collection has raised questions about a possible shift in its stance.
Bhalla expressed surprise at this apparent reversal, noting that the BJP had previously opposed caste enumeration, citing concerns that it could deepen social divides.
“Why the sudden switch?” he asked, calling on journalists to examine the political motivations behind the party’s change in position.
Proponents of private sector reservations argue they are essential for advancing social mobility among disadvantaged groups.
However, critics caution that mandated quotas could create inefficiencies, lead to legal challenges, and dampen entrepreneurship by introducing uncertainty into hiring practices.
With national elections on the horizon, the debate over private sector reservations is shaping up to be a major political flashpoint—balancing demands for social justice against warnings of economic disruption. (Source: IANS)
