After nearly three-decades of the Indra Sawhney judgment, the Supreme Court on Monday said the 50 per cent cap on reservation laid down by a 9-judge bench in 1992, could be re-examined in view of subsequent constitutional amendments and the socio-economic changes that has followed.
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A bench headed by Justice Ashok Bhushan issued notice to all state governments and Union Territories whether reservation could be allowed to breach the existing 50 per cent limit, and also sought the Centre’s Economically Weaker Section (EWS) quota amendment.
The bench also comprising Justices L. Nageswara Rao, S. Abdul Nazeer, Hemant Gupta and S. Ravindra Bhat said: “States have to be given opportunity to have their say.”The observation came while the apex court was hearing a batch of petitions challenging the validity of the Maratha reservation.
The top court said this matter is not limited to just one state, therefore it is important to hear other states too, as its decision in the matter would have wider ramification. The top court will also examine the possibility of referring to Indra Sawhney’s judgment to a larger bench and it will begin day-to-day hearing in the matter on March 15.
“We are of the view that looking into the issues raised in this appeal and the consequences to the followed, it is necessary that final hearing of this appeal be completed as early as possible. One of the issues before this Constitution Bench being interpretation of Constitution (One Hundred-Second Amendment) Act, 2018,” said the top court.
The petitioners have challenged the Bombay High Court judgement passed in June 2019. They have contended that the Act, which provides for 12 per cent and 13 per cent quota to Maratha community in education and jobs violates the principle laid in the 9-judge bench judgement of the apex court in 1992, which capped the reservation at 50 per cent.
The High Court had upheld the Maratha quota, where it ruled that reservation should be 12 per cent in jobs and 13 per cent in education.
Haryana’s jobs-for-locals law is legally and economically unsound
Haryana might just have jeopardised its future as one of India’s leading States by enacting the Haryana State Employment of Local Candidates Act, 2020, which reserves 75 per cent of private jobs with a salary of below ₹50,000 for ‘sons-of-the-soil’. Like the jobs-for-locals law passed by Andhra Pradesh in 2019, which its High Court said ‘may be unconstitutional’, the Haryana law too is open to legal challenge.
It runs the risk of being struck down for being violative of Article 14 (right to equality), Article 16 (equality of opportunity in employment) and Article 19 (the clause pertaining to freedom of movement). The 2017 Report of the Working Group on Migration cites the Supreme Court ruling in Charu Khurana vs Union of India and others (2014) to observe that “restrictions based on residence for the purposes of employment (are) unconstitutional”.
What’s disturbing is that Maharashtra, Karnataka, Telangana and Madhya Pradesh have expressed similar intentions. Karnataka seems to have developed second thoughts; in Maharashtra, sons-of-the-soil politics has been around for decades. Telangana has so far refrained from passing a law. It has instead suggested a coordinated approach with industry to create local skilling capacities.
It is hardly surprising that industry is worried about the impact of Haryana’s labour rules on the IT and automobile sectors in Gurugram and Manesar, besides the industrial hubs of Rewari and Bahadurgarh. Ironically, industry was desperately praying for the return of migrant workers from Uttar Pradesh, Bihar and Odisha after the lockdown was lifted. It is obvious that the local labour market cannot close the gap.
Economic productivity depends on the free and efficient allocation of labour and capital. It is inexplicable that governments should focus on ease of mobility with respect to allocation of capital — making clearances simpler, rolling out tax incentives, easing availability of finance, smoothening bankruptcy procedures — but impose shackles on labour. Indeed, the jobs-for-locals law may give rise to new labour inspector raj. It will lead to labour shortages in some regions and unemployment in others, creating distress in regions where families depend on remittance incomes. An economy struggling to shake off the pandemic can do without these shocks.
To be sure, States are responding to a political economy problem — the impact of rapid development of places such as Gurugram or Bengaluru on displaced agrarian populations, who feel excluded from the process. But for inclusive development, the capacities of these populations need to be scaled up, with the States and industries investing in their education and training. Labour market nativism cannot be justified, in law or in economic terms.
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- In the Large States category (overall), Chhattisgarh ranks 1st, followed by Odisha and Telangana, whereas, towards the bottom are Maharashtra at 16th, Assam at 17th and Gujarat at 18th. Gujarat is one State that has seen startling performance ranking 5th in the PAI 2021 Index outperforming traditionally good performing States like Andhra Pradesh and Karnataka, but ranks last in terms of Delta
- In the Small States category (overall), Nagaland tops, followed by Mizoram and Tripura. Towards the tail end of the overall Delta ranking is Uttarakhand (9th), Arunachal Pradesh (10th) and Meghalaya (11th). Nagaland despite being a poor performer in the PAI 2021 Index has come out to be the top performer in Delta, similarly, Mizoram’s performance in Delta is also reflected in it’s ranking in the PAI 2021 Index
- In terms of Equity, in the Large States category, Chhattisgarh has the best Delta rate on Equity indicators, this is also reflected in the performance of Chhattisgarh in the Equity Pillar where it ranks 4th. Following Chhattisgarh is Odisha ranking 2nd in Delta-Equity ranking, but ranks 17th in the Equity Pillar of PAI 2021. Telangana ranks 3rd in Delta-Equity ranking even though it is not a top performer in this Pillar in the overall PAI 2021 Index. Jharkhand (16th), Uttar Pradesh (17th) and Assam (18th) rank at the bottom with Uttar Pradesh’s performance in line with the PAI 2021 Index
- Odisha and Nagaland have shown the best year-on-year improvement under 12 Key Development indicators.
- In the 60:40 division States, the top three performers are Kerala, Goa and Tamil Nadu and, the bottom three performers are Uttar Pradesh, Jharkhand and Bihar.
- In the 90:10 division States, the top three performers were Himachal Pradesh, Sikkim and Mizoram; and, the bottom three performers are Manipur, Assam and Meghalaya.
- Among the 60:40 division States, Orissa, Chhattisgarh and Madhya Pradesh are the top three performers and Tamil Nadu, Telangana and Delhi appear as the bottom three performers.
- Among the 90:10 division States, the top three performers are Manipur, Arunachal Pradesh and Nagaland; and, the bottom three performers are Jammu and Kashmir, Uttarakhand and Himachal Pradesh
- Among the 60:40 division States, Goa, West Bengal and Delhi appear as the top three performers and Andhra Pradesh, Telangana and Bihar appear as the bottom three performers.
- Among the 90:10 division States, Mizoram, Himachal Pradesh and Tripura were the top three performers and Jammu & Kashmir, Nagaland and Arunachal Pradesh were the bottom three performers
- West Bengal, Bihar and Tamil Nadu were the top three States amongst the 60:40 division States; while Haryana, Punjab and Rajasthan appeared as the bottom three performers
- In the case of 90:10 division States, Mizoram, Assam and Tripura were the top three performers and Nagaland, Jammu & Kashmir and Uttarakhand featured as the bottom three
- Among the 60:40 division States, the top three performers are Kerala, Andhra Pradesh and Orissa and the bottom three performers are Madhya Pradesh, Jharkhand and Goa
- In the 90:10 division States, the top three performers are Mizoram, Sikkim and Nagaland and the bottom three performers are Manipur and Assam
In a diverse country like India, where each State is socially, culturally, economically, and politically distinct, measuring Governance becomes increasingly tricky. The Public Affairs Index (PAI 2021) is a scientifically rigorous, data-based framework that measures the quality of governance at the Sub-national level and ranks the States and Union Territories (UTs) of India on a Composite Index (CI).
States are classified into two categories – Large and Small – using population as the criteria.
In PAI 2021, PAC defined three significant pillars that embody Governance – Growth, Equity, and Sustainability. Each of the three Pillars is circumscribed by five governance praxis Themes.
The themes include – Voice and Accountability, Government Effectiveness, Rule of Law, Regulatory Quality and Control of Corruption.
At the bottom of the pyramid, 43 component indicators are mapped to 14 Sustainable Development Goals (SDGs) that are relevant to the States and UTs.
This forms the foundation of the conceptual framework of PAI 2021. The choice of the 43 indicators that go into the calculation of the CI were dictated by the objective of uncovering the complexity and multidimensional character of development governance

The Equity Principle
The Equity Pillar of the PAI 2021 Index analyses the inclusiveness impact at the Sub-national level in the country; inclusiveness in terms of the welfare of a society that depends primarily on establishing that all people feel that they have a say in the governance and are not excluded from the mainstream policy framework.
This requires all individuals and communities, but particularly the most vulnerable, to have an opportunity to improve or maintain their wellbeing. This chapter of PAI 2021 reflects the performance of States and UTs during the pandemic and questions the governance infrastructure in the country, analysing the effectiveness of schemes and the general livelihood of the people in terms of Equity.



Growth and its Discontents
Growth in its multidimensional form encompasses the essence of access to and the availability and optimal utilisation of resources. By resources, PAI 2021 refer to human resources, infrastructure and the budgetary allocations. Capacity building of an economy cannot take place if all the key players of growth do not drive development. The multiplier effects of better health care, improved educational outcomes, increased capital accumulation and lower unemployment levels contribute magnificently in the growth and development of the States.



The Pursuit Of Sustainability
The Sustainability Pillar analyses the access to and usage of resources that has an impact on environment, economy and humankind. The Pillar subsumes two themes and uses seven indicators to measure the effectiveness of government efforts with regards to Sustainability.



The Curious Case Of The Delta
The Delta Analysis presents the results on the State performance on year-on-year improvement. The rankings are measured as the Delta value over the last five to 10 years of data available for 12 Key Development Indicators (KDI). In PAI 2021, 12 indicators across the three Pillars of Equity (five indicators), Growth (five indicators) and Sustainability (two indicators). These KDIs are the outcome indicators crucial to assess Human Development. The Performance in the Delta Analysis is then compared to the Overall PAI 2021 Index.
Key Findings:-
In the Scheme of Things
The Scheme Analysis adds an additional dimension to ranking of the States on their governance. It attempts to complement the Governance Model by trying to understand the developmental activities undertaken by State Governments in the form of schemes. It also tries to understand whether better performance of States in schemes reflect in better governance.
The Centrally Sponsored schemes that were analysed are National Health Mission (NHM), Umbrella Integrated Child Development Services scheme (ICDS), Mahatma Gandh National Rural Employment Guarantee Scheme (MGNREGS), Samagra Shiksha Abhiyan (SmSA) and MidDay Meal Scheme (MDMS).
National Health Mission (NHM)
INTEGRATED CHILD DEVELOPMENT SERVICES (ICDS)
MID- DAY MEAL SCHEME (MDMS)
SAMAGRA SHIKSHA ABHIYAN (SMSA)
MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE SCHEME (MGNREGS)