As India does not have household income estimates, MPCE is used as a proxy for this.

According to this report (NSSO survey 2011-12), the top 5% of households reported MPCE at £4,481 in rural and £10,281 in urban areas.

If 5 members of each family earned in the top 5%, the monthly “family” income would be ₹22,405 in rural areas and ₹51,405 in urban areas – much less than the ₹66,666 limit set in early 2019. This would mean that the number of families qualifying for the EWS quota would be well over 95%.

The Treasury had to rely on this decades-old NSSO data because the center discarded the 2017-18 data because it showed the 2011-12 “true” MPCE had fallen – for the first time in 40 years. This indicated that poverty was increasing. As such, the center did not attempt another MPCE, although it did conduct other surveys, such as the 2019-21 NHFS-5, the 2020 Excess Death Civil Record (CSR), and the Medical Certificate of Cause of Death (MCCD). of 2020 – all of which were released earlier this month.

The other data available at the time was NABARD’s 2018 All India Rural Financial Inclusion Survey from 2016-17. It showed the top 1% of rural households earning £48,833 a month – again much less than £66,666, which would mean 99% of rural households qualified for the EWS quota.

A number of questions arise from all of this.

What good is the EWS quota if almost the whole country qualifies for it? Doesn’t it defeat the very purpose of the SCs, STs and OBCs (positive discrimination) quota – which aims to correct the “structural inequality” and historical injustices that have deprived them of higher education and jobs?

Education rate allowed by SC

The Supreme Court has since approved the EWS quota in higher education.

In January 2022 it cleared a stay imposed on the EWS quota in the NEET PG deliberation by the Madras High Court. The latter had referred to the pending cases which the former should issue a stay. However, the former overturned it, saying the income criterion (₹8 lakh a year) would depend on the final outcome of the pending petitions.