Inclusiveness, not quotas, best in industry

For most of the 20th century, private industry has suffered, through ill-conceived “protection” policies — low productivity, lack of self-confidence and self-esteem, and an inability to compete on its own terms. With economic reforms and liberalisation since 1991, we have developed new abilities and confidence in ourselves. This is one reason why we believe that reservation of jobs in the private sector can have long-term adverse social implications for the beneficiaries.

It is therefore absolutely critical to create an environment where weaker sections can productively participate in the economic mainstream. Inclusiveness and social equity must be a key component of growth strategies, and industry is not only conscious of this fact but keen to contribute to it. As the Scheduled Castes and Scheduled Tribes are particularly underprivileged due to historical social discrimination, the task force focused its action plan for this section too.

Private sector organised industry in general is neutral to caste in employment decisions. Anyone who can contribute to the productivity and competitiveness of the company would be taken into employment at the level of suitability as per the company’s requirement. We believe that representation of SC/ST in our workforce will greatly contribute to our future industrial growth through multiplier effects on consumption and investment. Thus, the report for private sector industry, through a Code of Conduct, focuses on non-discrimination on the basis of caste, and on encouraging appointment and promotion for SC/ST at all levels.

To encourage SC/ST applicants, the task force has laid out concrete steps to build and strengthen their competence. These include training and coaching programmes in universities and for entrance exams to technical and professional courses. In the first year, 10,000 students will be covered, to be extended to 50,000 by 2009. This will create a large pool of qualified personnel for employment in the private sector.

In the current industrial scenario of labour laws and low job growth, the possibilities for large changes in employment profile are restricted. Of the 400 million strong workforce, only 2% is currently employed in private sector organised industry. The rest of the workforce is engaged in agriculture, small business and entrepreneurship, and self-employment. Creation of entrepreneurship and self-employment opportunities are therefore a far more effective means of spreading growth.

Private industry can play a large role in this through mentoring fresh entrepreneurs from the SC/ST category. This will create a class of independent and self-directed business persons from SC/ST categories, with the freedom to make their own decisions about their growth and future. Companies can build effective linkages for such entrepreneurs and self-employed persons in their upstream and downstream business partnerships. Further, such businesses will contribute to employment generation. In this context it may be worthwhile to observe that the US programme on “Equal Opportunity Employer” has actually played a strong role in making the US industry more competitive.

Skill development, vocational training and technical courses will also add to capacity-building for SC/ST. Skills are in short supply in the current industrial environment, while at the same time the pool of the unemployed is expanding. Active measures to bridge this gap are vital to India’s growth, and directing such activities by the private sector towards SC/ST has the advantage of bringing the marginalized into the mainstream.

Access to quality education at the primary and secondary levels is critical to creating opportunities for SC/ST. School drop-out rates are high, and little support is available for attending and completing school. The education cess has added to available funds and is being utilised in infrastructure upgrade, teacher’s training and mid-day meal schemes. The private sector can lend its managerial expertise to district education efforts, especially in the districts with a majority of SC/ST populations, in order to enhance productivity of the schemes.

To coordinate all these efforts by the private sector, CII and ASSOCHAM have committed to setting up councils at the national level. Both are apex level Industry Associations with national status. CII’s national councils are carrying out commendable work in many areas to build industry’s competitiveness in an inclusive manner. The mission mode of its activities, and close involvement and support of member companies has brought laudable success in these ventures.

CII will build partnerships with NGOs, institutions and the government to put into effect the Concrete Steps. It is already undertaking many programmes for spreading growth, coordinating industry efforts with such organisations, and has built a network of effective ventures. A recent initiative is the Skill Development programme, which aims at making India the world skills capital by building a pool of talented personnel in consonance with market expectations.

The office of an Ombudsman will strengthen the efforts of private industry in affirmative action.

Inclusiveness is a matter of priority for industry. I am confident that with the concerted efforts of all sections of society, the government and private industry, we will be able to witness positive results in building an inclusive society with a competitive and expanding economy within a short period. This is in the self interest of industry and, therefore, it is of great importance that this programme takes off and succeeds — the credibility of Indian Industry is associated with it.

The writer, who chaired the CII-Assocham task force on affirmative action, is a director of Tata Sons