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Other Aspects of Governance

Private sector job reservation in Haryana – 5 big points against Haryana’s 75% private job quota

Private sector job reservation in Haryana – 5 big points against Haryana’s 75% private job quota


  • GS 2 II Governance & Social Justice II Other Aspects of Governance II Public Sector Reforms

Why in the news?

Haryana Governor Satyadeo Narain Arya approved the Haryana Reservation Bill to provide 75 per cent reservation in the private sector to job seekers from the state.

Present context:

  • According to the state government, the reservation law covers private companies, societies, trusts, and partnership firms in the state.
  • The Haryana reservation law also provides training to eligible local candidates when qualified people are not available.
  • The law defines local candidates as those domiciled in the state. For the domicile status, a person should be born in Haryana or have lived there for at least 15 years
  • According to the law of the state, a candidate who is domiciled in Haryana is called a local candidate and will be able to avail the benefit of this reservation while seeking employment in the private sector.

Reservation in private sector:


  • Reservations are an affirmative action against social discrimination program. It should be applicable where there is evidence of social discrimination against particular communities or social groups. There is evidence of social discrimination in Indian private sector.
  • Private sector companies and country benefit from affirmative action programs the same way outsourcing programs helped private sector companies. Outsourcing programs increased the availability of cheaper human labor to companies due to increased competition. The same benefit applies when diversifying the workforce to include other communities.

The purpose of reservation in India:

  • According to the Indian Constitution, the two primary goals of reservation are:
    • Advancement of Scheduled Castes (SC) and Scheduled Tribes (ST) OR any socially and educationally backward groups of people (Eg: OBC) OR economically weaker sections (EWS) – Article 15 (4), Article 15 (5), and Article 15 (6)
    • Adequate representation of any backward class of citizens OR economically weaker sections (EWS) in the services under the State. – Article 16 (4) and Article 16 (6)

Reservation in private sector should be allowed:

  • According to Ministry data only 3.7 % of employed workers are in the government job so for wider benefit of reservation, it has to be extended to the private sector too
  • The Human development report by UNDP, 2019 had appreciated the reservation policy commending the increase in Dalit position in civil services from approx. 3 % to 12 % between 1965 and 2001
  • The private investments are more capital intensive. The Make in India week had envisaged more than 225 billion dollar investment but would generate mere 6 million jobs.

Pros and cons of reservation in private sector:


  • Backward class representation: The main purpose of reservation is to allow the representation of backward classes in jobs. If reservation in private sector will be given, this motive seems to fulfill.
  • Backward students are yet deprived of high class education. To ensure this, private schools must have reservation for such students.
  • Government jobs does not provide enough opportunities to provide employment to the backward classes. Private sectors jobs and cover the major backward population if reservation is given to them.
  • Many private sector firms get government aids and many other tax benefits. Then why not they must have a provision for quota in their jobs?
  • Economic backwardness of the Dalits will make them helpless to acquire new skills to compete in the private sector. So reservation can help them.
  • In metro cities, the hiring rate of the Scheduled castes & Scheduled Tribes by the Multi-National Companies (MNCs) is almost negligible because of lack of technical skills and English speaking abilities. If reservation is provided to them, they will get a fair chance of representation and learning.


  • Private sector runs on talent and ability. And it is a bitter fact that talent is compromised in reservation.
  • Private sector is a profit making enterprise and it is least concerned with the representation of different castes in its workforce.
  • This decision will create a huge rift between the upper and lower castes of India as general category people have been complaining about the troubles they face is getting a government job.
  • Not yield the desired results: Reservation policy has not yield the desired results and implementing a back fired policy is disastrous for the country.
  • Competitiveness and efficiency: The private sector will lose its competitiveness and efficiency to function if people with less talent are hired only on the basis of the caste to which they belong.
  • Employment Issue: As of now, only private sector is somehow handling the unemployment issue of India. With reservation, even the private sector will explode.

What is needed to be done in future?

  • The reservation system in India was developed with the aim of uplifting the underprivileged sections of society, who had previously been discriminated against due to India’s deeply rooted caste system.
  • Benefit one segment of society: However, reservation systems, such as those used in India, act to benefit one segment of society at the expense of others. In this context, what India must fail to do is create power.
  • Reservation system should be according to economic status.
    • Reservations made on the basis of caste rather than economic status are immoral and inappropriate.
    • Fair and just reservations should be made available to help people in dire living conditions, such as those who don’t have enough to eat, clothing to wear, or a place to live.
    • They would be based on factors such as gender (because women have always been marginalized in comparison to men), domicile, family education, family jobs, family property, family income, and any disabilities or traumas.
    • The reservation process should be designed to weed out those who are genuinely economically disadvantaged and bring them all to justice.
    • Provide an opportunity for students to earn while they study.
  • Bring about revolutionary changes in our education system at the grass-roots level to improve education quality. Because reservation at subsequent stages will never be of any use if quality education hasn’t been provided to children at the primary stage.


Quotas are not a panacea for achieving social justice. The only way to ensure this is to level the playing field through proper education and training, as well as a relentless watch to ensure that those who undermine the Constitution’s pledge of equality for all are held accountable.

Mains oriented question:

Reservation in private jobs are opportunity for some but it can at certain stage it can be seen as barrier for more innovative ideas, how far this statement is true, Comment. (200 words)