Fearing a policy move to enforce reservations in private sector jobs for socially weaker sections, industry on Friday suggested an alternative system of government loans for entrepreneurs from disadvantaged sections and fiscal incentives for firms that voluntarily employ such persons.The industry alternative to job reservations was presented by the Federation of Indian Chambers of Commerce and Industry (FICCI), which strongly opposed reservations, saying no significant world economy corrects social or cultural inequity through private sector reservations.FICCI says in a report released on Friday that only two per cent of all jobs were in private industry, which needed to be more efficient and grow faster, without the risk of hiring ‘‘inefficient people through a reservation.’’Friday’s model is industry’s first official response to the government’s position in favour of private sector reservations, which is currently assigned to a group of ministers for debate.The industry proposal suggests the government should educate, train and encourage entrepreneurship instead of reserving jobs. It proposes easy government loans to launch companies for entrepreneurs from disadvantaged groups, possibly without bank guarantees and price preference in government procurement for such entrepreneurs.To encourage private companies to directly absorb people who fit any of the official categories for disadvantaged persons, FICCI has suggested fiscal incentives such as lower taxes.‘‘Companies alone are the best judge of whom to hire or not hire,’’ said FICCI president Y.K. Modi, stressing that firms will employ from all sections of society, provided the requisite skills are available.Such hiring will be propelled by fiscal incentives to firms, added FICCI secretary general Dr Amit Mitra.‘‘There are very few jobs for unskilled persons-where can anyone place unqualified people even if there is a reservation? Encourage entrepreneurship and education instead,’’ he said.FICCI president said the government’s model of reservation, if implemented in future at all, would be ‘‘anti-industrialisation’’.
