Lateral entry into senior positions of Indian bureaucracy is one of the hotly debated topics ever since the government started exploring it as a way to bring fresh perspectives and specialised expertise in governance. The idea, which was formally introduced in 2018, has its roots in earlier administrative reform efforts, notably the recommendations of the Second Administrative Reforms Commission of 2005. Despite its promise of addressing complex governance challenges, the practice remains mired in political and social debates, particularly around the issues of representation, reservation, and potential conflicts of interest.
The Public Enterprise Selection Board has also taken steps to broaden the talent pool from which central public sector enterprises draw their senior leadership. Through recent advertisements, like the one for the Chairman and Managing Director of Fertilisers and Chemicals Travancore, the PESB has encouraged applicants from private sector companies with a turnover of over Rs 1,500 crore. The board’s collaboration with the Capacity Development Commission to promote leadership identification within Maharatna and MiniRatna companies demonstrates the government’s willingness to incorporate best practices from both public and private sectors.
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Expanding talent pool for PSUs
This approach reflects a strategic effort to enhance succession planning and talent management across public enterprises. However, even as private sector professionals and candidates from financial institutions are allowed to apply, traditional government criteria such as seniority and qualifications are maintained. This balancing act — between internal promotion and external recruitment — ensures that experienced individuals familiar with the nuances of government operations are not overlooked.
Yet, the widening of the candidate pool comes with its own set of challenges. PSUs, especially those in line for disinvestment, face difficulty in attracting high-calibre applicants. While automation has sped up the recruitment process, ensuring that the right talent reaches the decision-making table remains a significant concern.
Row over lateral entry in bureaucracy
Lateral entry into bureaucracy has provoked a different level of debate, especially given its implications for social equity and representation. The Union government’s decision to introduce lateral recruitment for senior roles such as joint secretaries and directors across ministries is part of a broader push to tap into external expertise. With candidates coming from academia, public sector undertakings, and private companies, the goal is to address emerging challenges in areas like technology, finance, and infrastructure where traditional bureaucratic experience might fall short.
However, opposition parties have expressed concerns, particularly over the exclusion of reservation policies in lateral recruitment. Critics of lateral entry argue that the process bypasses quotas meant for marginalised communities, effectively eroding decades of affirmative action. Congress leaders Rahul Gandhi and Mallikarjun Kharge have criticised the move as an attack on dalits, OBCs, and adivasis, while the Rashtriya Janata Dal and Bahujan Samaj Party have voiced similar concerns. The recent decision to cancel the lateral entry process for government posts due to strong opposition highlights the complexities of the recruitment process.
Balancing expertise with representation
Despite the criticisms, the lateral entry system has its takers, including within the ruling Bharatiya Janata Party (BJP), which points out that the idea was originally developed during the Congress-led United Progressive Alliance (UPA) government. Union Minister Ashwini Vaishnaw highlighted that the ARC under Veerappa Moily advocated lateral entry as a means to bring in specialised talent to fill knowledge gaps in the traditional civil service.
The 63 lateral appointments made since 2018 have brought in professionals who possess deep industry knowledge and technical expertise, driving key policy initiatives in ministries like finance, electronics, and renewable energy. These appointments have injected much-needed efficiency and innovation into the system, especially in areas where bureaucratic inertia and groupthink often hinder progress, say the supporters of lateral entry.
The success of lateral entrants, however, hinges on addressing structural challenges. Integrating private sector professionals into a bureaucracy known for its hierarchical and process-oriented nature is no small feat. Cultural misalignment can lead to friction, and there is often resistance from career bureaucrats who see lateral entrants as threats to their promotion prospects. Furthermore, the short-term contracts typical of lateral hires may encourage a focus on immediate gains rather than long-term institutional development, potentially undermining governance continuity.
Towards a balanced model
For lateral entry to succeed in India, it is essential that the system evolves to address both the concerns of inclusivity and the need for specialised expertise. A balanced approach that maintains the integrity of India’s reservation policies while also creating opportunities for domain experts to contribute to governance is crucial. One potential solution could be to carve out specific lateral entry posts that come with mandated quotas, ensuring that representation and merit are not mutually exclusive.
The government must focus on creating a work environment where lateral entrants and career bureaucrats can collaborate effectively. Transparent performance evaluations, clear accountability frameworks, and proper integration mechanisms will help mitigate the risks of cultural misalignment and resistance.
The PESB’s efforts to expand its talent pool offer a promising model. By standardising qualifications and encouraging public enterprises to develop their internal leadership pipelines, the board has demonstrated that representation concerns can be addressed within a broader recruitment strategy. A similar approach could be adapted for the wider bureaucracy, ensuring that the government remains both innovative and representative of India’s diverse population.
Lateral entry into the Indian bureaucracy and public sector enterprises represents both an opportunity and a challenge. While it holds the promise of infusing new expertise into governance, its success will depend on striking the right balance between social justice and long-term institutional reforms. If implemented thoughtfully, it could mark a transformative shift in how India’s civil services function, positioning the country to better meet its governance challenges in the years to come.