I have had this discussion with some of my peers during my undergrad, and I would like to put forward my point in a way similar to how I had put it at that time:
Scene 1:
(Flashback-5yrs before)
Me standing in the queue since the last 30 mins or something for the JEE form costing Rs.1000. A guy comes on a Karizma, parks his bike close by, goes directly to the counter(as there is a separate line and form for reservation candidates), buys the form for Rs. 500, opens up his MotoRazr, talks to somebody over the phone for 2-3 mins and rides away on his bike.
Scene 2:
(During 4 years of my undergrad)
A guy with an iPhone, 2 laptops(1 of which is a macbook), and a whole plethora of other gadgets, and who I know to be filthy rich gets a scholarship with full tuition fee waiver and monthly expenses extra because his father is a businessman who can fudge his income sheet.
The connect:
Scene 1 shows why the current reservation system is not working. Why the people who generally take advantage of such a scheme of government are not the ones whom the scheme is actually meant for.
Scene 2 on the other hand shows that even if our government based the reservation system on economic background, there will be people, who will take advantage of the situation and create a similar problem.
So what should the reservation be based upon?
The idea behind reservation system(ideally) is to reduce disparity in the educational and economic background of the families of India. Because of the extent to which corruption has deepened its roots inside our nation, any statistic that we base the reservation upon will be fudged. And I don't think there is anything the government can do about it(unless we start talking about unrealistic goals like removing corruption)
Why not remove this reservation system completely?
Read along. You will your get your answer by the end of this article.
Before we move ahead, here is my background:
-belong to OBC category
-undergrad from IIT Kanpur, 2012 pass out(admitted on General Rank, didn't apply in OBC)
-PGDM from IIM Calcutta, starting in 2013(admitted on General Rank, didn't apply in OBC)
I have studied in one of the most coveted institutes of India, and though I could not get the department of my choice, I am still proud of the fact that I did not succumb to the temptation of getting an admission through the OBC reservation quota because it is completely against what I believe in. My parents also have been supportive of my decision. Skeptical(they made sure I knew what I was risking and going to lose out on), but supportive nonetheless. And before you ask, I come from a middle class family with quite a humble economic background.
I have experienced almost everything that has been said about the reservations in the answers below. A lot of more-deserving students(in terms of intellect) do not get the branch of their choice because of the reservation problem. And even worse, a lot of them don't even get a seat altogether and someone who is economically, intellectually and socially less deserving than him/her takes the cake.
Is it always like this?
No. In my 4 years at IITK, the wing I was a part of, had 18 people, and 2 of them, who were from SC/ST category really deserved to be admitted. Not because of their intellect, but because of the background they were from. One of them was the only engineer from his village, and is an inspiration to a number of kids from there and a hope to their parents that there is still a chance for their kid to make it big in this unequal world. The other, well, I have been to his house, and have a first person account of the kind of economic background that he comes from. Lets just say that if anyone deserved those seats, it would be them.
What I am trying to say here is that if this reservation system can help even a small number of people, can bring them up the social and economic ladder, can bring about a change, can instill hope in the oppressed class of the Indian populace, then it has a right to exist. Even if a large part of it is misutilized by people who don't have any right to avail it.
Yes it is not perfect. But what is?
I don't think most of us have a problem with reservation. What we have a problem with is the people who misutilize this benefit. And that cannot be changed by making new policies. The change that we need to bring in our country will only be brought if we, as individuals, start taking things into our own hands. I know how ideal(and in the words of some of my friends, ridiculous) I sound here, but that doesn't make it any less true.
I have taken a small step in this regard, tried to make it right, and things have fallen into place(I agree to the fact that I have doubted my decision regarding not applying as an OBC, specially right before the results). And I am not the only one. There are people I know who have done the same. I would not disrupt their privacy by taking names but they exist. I know how ideal I sound here, but that is what my perception about this problem is. And to be honest, I don't think reservation is going to be abolished anytime soon because of Indian politics, so why not make the best out it? Yes, I am an optimist, to the core, and a huge Bollywood fan. So I would end this with one of my favorite dialogues from Rang De Basanti:
Koi bhi desh perfect nahin hota, use behtar banana parta hai.
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