Equal and excellent?

The Central government has proposed that 4 per cent of its annual purchases be reserved for units run by Dalits or tribals (SC/ST). This reservation — estimated at Rs 25,000 crore — will “boost entrepreneurship among the disadvantaged by giving them assured state clientèle without the fear of competition from entrenched businessmen”. While reservations are a legitimate choice for society, we must not pretend there are no effective policy alternatives. In fact, a broader fix of the entrepreneurship ecosystem will do a better job of helping the true “economically disadvantaged”.

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