Other Backward Classes (OBCs)
- The term ‘OBC’ stands for ‘Other Backward Classes’, used for the first time in the Mandal Commission’s Report in 1980.
- OBCs are the castes that fall between the three higher varnas and the Dalits (Scheduled Castes) and Adivasis (Scheduled Tribes), and they account for roughly half of the Indian population.
Constitutional Provisions
- In the Indian Constitution, OBCs are described as socially and educationally backward classes.
- Article 340 of the Indian Constitution provides for the Appointment of a Commission to investigate the conditions of backward classes.
Welfare Scheme
- New Swarnima for Women: Under this scheme, women belonging to backward classes living below double the poverty line can obtain a loan upto Rs.1,00,000/- @ 5% p.a.
- Saksham: This is a special scheme under Term Loan for young professionals belonging to Backward Classes of the target group.
- Shilp Sampada: The objective of this scheme is to upgrade the technical and entrepreneurial skills of Backward Classes by providing training and financial assistance.
- Krishi Sampada: To provide concessional loans under Microfinance to small farmers, and vegetable vendors of the target group for requirements of funds during Rabi & Kharif or any cash crop.
OBC Reservation
- Second Backward Class Commission: The GOI appointed the Mandal Commission in 1979. It submitted its report in 1980 and recommended 27 % reservation in favour of OBCs. The government accepted it in 1990.
- Socially and Educationally Backward: OBCs are considered socially and educationally backward classes and granted reservation in Education – Article 15 (4) and Jobs – Article 16 (4) to ensure their social and educational development.
- Indra Sawhney Case (1992): The Supreme Court upheld the OBC reservation but excluded economically well off OBCs known as a “creamy layer”.
Impact of Reservation:
- After reservation OBCs have made considerable progress in education, their representation in employment increased, and in politics too they have become powerful.
- In 2013, OBCs represented 8.37 % of Class A in the Central Government Services, 10.01 % of Class B and 17.98 % of Class C.
- Their percentage in the CPSEs jumped from 16.6 % in 2004 to 28.5 % in 2014.
- At the same time, poorer sections within OBCs have not got reservation benefits. Thus, the demand for subcategorization within the OBCs has received serious attention