Reservations, Freebies, and Politics: The Toxic Trifecta Holding India Back

India stands at a complex crossroads—between a deeply entrenched past and the hope of a progressive future. The caste system, historically used to enforce hierarchy and exclusion, still shapes the social fabric. Initially designed to correct centuries of injustice, preservation policies now raise challenging questions about fairness, efficiency, and merit. At the same time, welfare schemes and subsidies—though well-intended—often end up being political tools, distorting incentives and failing to lift the genuinely needy out of poverty. What’s needed is a critique and a clear-eyed review of how we define justice, equity, and national responsibility.

Historical Roots and the Weight of Tradition

India’s social stratification finds its roots in ancient texts like the Manu Smriti, which codified roles and responsibilities based on birth. These guidelines, once perhaps reflective of occupational divisions, evolved into a rigid caste hierarchy that dictated status, mobility, and even human worth. Women were relegated to secondary status in this patriarchal framework and denied property rights, education, and essential agency over their own lives. This cultural scaffolding shaped generations and left deep scars, necessitating systemic intervention after independence.

Caste Across Religions

A common misperception is that caste is exclusive to Hinduism. However, social stratification has found its way into other religious communities too—be it the Ashraf-Ajlaf-Arzal distinctions in Islam or divisions among Dalit Christians and Sikh Mazhabi groups. While offering spiritual refuge to many, conversion has not erased caste identities. The idea that caste discrimination is solely a Hindu problem is both inaccurate and unhelpful. It must be acknowledged as a pan-Indian social issue that cuts across religious lines.

Reservations: Time for a Rethink

Post-independence India sought to level the playing field through affirmative action. Reservations in education, jobs, and politics were envisioned as temporary corrective measures for Scheduled Castes (SC), Scheduled Tribes (ST), and later Other Backward Classes (OBC). However, these policies have become permanent fixtures over the decades, expanding to include religious minorities and newer communities lobbying for inclusion.

But the core question remains: Are we still serving the people who need it most?

Today, caste-based reservations often benefit the more advanced segments within these groups, sidelining the truly marginalized. Simultaneously, economically disadvantaged individuals from non-reserved categories are left out. This calls for a shift in the lens—from caste to class. A reservation system based on economic criteria could address poverty more inclusively without diluting the intent of social justice.

Economic Backwardness vs. Social Backwardness

The line between social and economic backwardness is blurry. However, both deserve consideration. India’s poverty isn’t caste-exclusive. Daily wage laborers, small farmers, and the urban poor—all suffer the same indignities of hunger, lack of healthcare, and inadequate education, regardless of their social identity.

Shouldn’t the state help all those who live below the poverty line, irrespective of caste or religion?

An income-based filter to determine eligibility for state support could reduce resentment, promote meritocracy, and direct benefits to those who genuinely need them. It’s not about denying past injustices but addressing present-day realities.

The Dole Trap and the Skills Crisis

India boasts a demographic dividend: a young, energetic population with massive potential. But that dividend risks becoming a liability. Instead of equipping youth with skills and jobs, the system fosters dependency through doles and subsidies. Free electricity, water, and food sound benevolent but erode financial discipline, strain state budgets, and disincentivize work.

The promise of free essential services may win elections but not build a nation. More alarmingly, it’s creating a generation lacking employable skills, an entrepreneurial mindset, or a sense of accountability. By trying to be a universal provider, the state is weakening its own foundations.

Nothing Is Free: The Economics of Governance

The idea that essential services should be free is deeply flawed. Someone always pays. When mismanaged, subsidies end up being financed by a shrinking base of honest taxpayers who already pay multiple times—income tax, GST, fuel cess, road tax, and more. For a country with poor infrastructure, failing public health, and polluted water, that’s a bitter pill.

Public dissatisfaction is growing not just because of high taxation but also due to the low return on that tax investment. Despite decades of funding, clean water, sanitation, public transport, and law enforcement remain subpar.

So, where is the money going?

Until accountability in public spending becomes the norm, taxpayer trust will continue to erode. A fair system demands transparency, efficiency, and responsible governance.

Privatization: Cure or Curse?

To address inefficiencies, India turned to privatization. In theory, competition brings better services. In practice, it’s more complicated. Private firms, driven by profit, often exploit monopolistic positions, especially in electricity, healthcare, and education. What was once a public good has become a commercial commodity, usually priced out of reach for the poor and middle class.

Instead of correcting state failure, privatization has, in many cases, added another layer of exploitation. The solution isn’t to reject privatization but to regulate it better. The state must act as a referee—not a player—and ensure essential services are affordable, reliable, and fairly delivered.

Cleanliness: A Cultural Contradiction

India, a land that worships purity and cleanliness in rituals, struggles to keep its streets and rivers clean. This cultural contradiction is jarring. Swachh Bharat was a step in the right direction, but cleanliness must go beyond campaign slogans. It must become a national obsession ingrained in education, governance, and public behavior.

Neighboring nations with fewer resources manage cleaner environments. The issue here isn’t money—it’s mindset. Civic responsibility is either missing or outsourced to “lower castes.” This, too, is a legacy of social hierarchy and must be dismantled.

The Way Forward: A National Reset

India needs a reset—both in policy and in mindset. Here’s a proposed path forward:

• Reservation Reform.  Introduce an economic criterion across all groups. Cap the duration of reservation benefits to two generations per family to prevent monopolization by the elite within reserved categories.
• Skill Development.  Shift focus from giveaways to capacity building. Invest in technical training, apprenticeships, and digital literacy to prepare youth for the job market.
• Tax Rationalization.  Lower indirect taxes, broaden the tax base, and simplify compliance. Reward honest taxpayers with better services.
• Smart Subsidies.  Replace blanket subsidies with targeted Direct Benefit Transfers (DBT). Ensure leak-proof systems and regular audits.
• Transparent Governance.  Mandate real-time tracking of government schemes, Project completion, and fund utilization.
• Regulated Privatization.  Ensure that privatized sectors meet service quality benchmarks and provide affordable access to essential services.
• Civic Re-Education.  Launch a national behavioral change campaign focused on civic responsibility, sanitation, and public ethics.

Conclusion

India’s challenges are deep-rooted but not insurmountable. The caste system, reservations, welfare politics, and poor service delivery are all interconnected symptoms of a more significant issue: a lack of accountability—both from the state and its citizens.

Correcting the course will take courage, not populism. We must redefine what fairness looks like in a modern democracy. That means lifting the poor, regardless of caste, and building a nation that values merit, effort, and responsibility. Welfare should be a bridge, not a crutch. Governance must be a partnership, not a one-sided promise.

It’s time to stop playing politics with people’s lives and build a system that delivers dignity, equity, and opportunity for all.