Lateral Entry Scheme and Recent Developments

Recent Updates:

The Union Public Service Commission (UPSC) recently announced 45 vacancies for positions such as Joint Secretaries, Directors, and Deputy Secretaries under the Lateral Entry Scheme. However, due to opposition from various groups, citing concerns over compromising reservation rights of SCs, STs, and OBCs, the government has decided to halt the recruitment process.

What is the Lateral Entry Scheme?

Definition:
Lateral entry involves the direct recruitment of professionals from outside the government into mid- and senior-level positions, aiming to infuse fresh ideas and domain-specific expertise into governance. These appointees are typically hired on three-year contracts, extendable to a maximum of five years.

Historical Background:

• Early Discussions: The concept gained prominence during the 2004–2009 period and was strongly advocated by the Second Administrative Reforms Commission (ARC) in 2005.
• Recent Recommendations: The NITI Aayog’s 2017 Three-Year Action Agenda and the Sectoral Group of Secretaries (SGoS) on Governance highlighted the need for lateral recruits to enhance efficiency in central administration.

Eligibility Criteria:
Candidates from the private sector, public sector undertakings (PSUs), state governments, or autonomous bodies, with proven expertise in relevant fields, can apply. The selection focuses on professional achievements and domain-specific knowledge.

Reservation and Lateral Entry:

Exclusion of Reservation:

• Lateral entry positions fall under the "13-point roster" system, which excludes reservations as these posts are considered "single posts."
• Under this system, the absence of group vacancies prevents reservation allocation for SC, ST, OBC, and EWS candidates.

Controversy:
If the 45 vacancies were treated collectively, reservations would apply, ensuring representation from reserved categories. However, treating these as individual posts bypasses this requirement, effectively excluding candidates from reserved groups.

Progress So Far:

Since the scheme's initiation in 2018, 63 individuals have been appointed, and as of August 2023, 57 continue to hold senior roles in various central ministries and departments.

Recommendations on Lateral Entry

First Administrative Reforms Commission (1966):
The commission, led by Morarji Desai, laid a foundation for professionalizing civil services but did not directly advocate lateral entry.

Second Administrative Reforms Commission (2005):
The 10th Report of the ARC recommended introducing lateral entry to bring specialized expertise from the private sector, academia, and PSUs. Key suggestions included:

• A transparent, merit-based selection process.
• Creating a talent pool for short-term appointments.
• Ensuring the integrity of the civil service while integrating lateral entrants.

Addressing Social Justice in Bureaucracy

Current Challenges:

• SC/ST officers hold only 4% and 4.9%, respectively, of senior bureaucratic positions (e.g., Joint Secretaries, Directors, Deputy Secretaries).
• Age-based retirement limits the progression of SC/ST and PwBD officers, who often enter the service later and retire before reaching top positions.

Proposal: Fixed Tenure System

A fixed tenure system, wherein all officers serve for a standard 35 years irrespective of entry age, has been suggested to address these disparities.

Advantages:

• Enhanced Representation: Helps SC/ST and OBC officers secure senior roles.
• Merit Focus: Promotes competence and performance over seniority.
• Inclusivity: Advances social justice by creating equal opportunities.
• Practicality: Rising life expectancy and regular health evaluations make extended tenures feasible.

Challenges:

• Age Concerns: Officers could remain in service into their 70s, potentially necessitating a lower starting age to maintain retirement around 67.
• Resistance: Seniority-based systems are deeply entrenched, and reform might face pushback.
• Political Sensitivities: Fixed tenure could lead to debates over merit-based promotions, age limits, and performance evaluations.

This dual approach of lateral entry and tenure reforms could improve governance while addressing long-standing equity concerns in Indian bureaucracy.

The concept of lateral entry into the Indian bureaucracy has gained significant attention over the past few years. To get entry into Indian Administrative Services (IAS), Indian Police Services (IPS), and other allied services Examination conducted by the Union Public Service Commission (UPSC) has to be written. However, to bring in domain experts from various fields and enhance the effectiveness of governance, the government of India introduced the lateral entry policy for senior roles in central government ministries and departments.

Understanding the Concept of Lateral Entry

Lateral entry refers to the appointment of professionals from the private sector, academia, public sector undertakings (PSUs), and other non-government sectors directly into senior positions in government services. Unlike the regular process through the UPSC Civil Services Examination, lateral entry allows experienced professionals from various sectors to enter the Indian administrative system at senior levels without going through the traditional UPSC examination process.

Need for Lateral Entry in UPSC

The need for lateral entry in UPSC in India has been highlighted by several think tanks, committees, and experts for years. The Indian bureaucracy, though competent, often lacks the domain-specific knowledge required in areas like economics, health, technology, and infrastructure. The idea is to foster a blend of "generalist" civil servants, who have broad administrative experience, with "specialists" who bring specific technical knowledge to the table.

Statistics:

Eligibility for Lateral Entry in UPSC

To be eligible for lateral entry in UPSC, candidates must meet specific criteria, as outlined by the Department of Personnel and Training (DoPT) and the UPSC. The eligibility criteria are as follows:

• Educational Qualification: You should be a graduate (i.e. undergraduate or postgraduate in both works). 

• Work Experience: Minimum of 15 years of experience in the relevant field (public sector, private sector, academia, etc.).

• Age Limit: Generally, the age limit is between 40 to 55 years for lateral entry positions such as Joint Secretaries and Directors.

• Other Requirements: Proven track record of professional excellence, achievements in the relevant sector, and a clean professional record.

Positions Available through Lateral Entry

Lateral entry appointments are generally for senior roles in various ministries and departments. Some of the notable positions filled through lateral entry include:

Selection Process for Lateral Entry in UPSC

1. Notification and Application: 

Positions are advertised on the official government portals like the DoPT and UPSC websites. For instance, the first notification for lateral entry was issued on June 10, 2018.

2. Screening of Applications: 

An initial screening is conducted based on the applicant’s qualifications, experience, and achievements. As per the data received from UPSC in 2018 for 10 positions that were advertised more than 6,000 applications were received.

3. Personal Interview: 

Shortlisted candidates are called for a personal interview by a panel consisting of experts from the government, academia, and industry. 

4. Final Selection: 

Candidates who clear the interview are appointed to their respective positions. In 2019, at first round 9 candidates in total were appointed as Joint Secretaries in different departments of ministries. 

Positions Available through Lateral Entry in UPSC

Lateral entry appointments are typically made for higher-level positions in government ministries and departments. Some common positions available through lateral entry include:

• Joint Secretaries: These positions are crucial for policy formulation and are generally held by senior IAS officers. 

• Directors: Responsible for specific projects or divisions within ministries.

• Deputy Secretaries: These are junior to Joint Secretaries and are responsible for implementing policies and overseeing day-to-day administrative tasks.

History and Recent Statistics of Lateral Entry in India

The idea of lateral entry was first proposed by the Administrative Reforms Commission in the 1960s. However, it gained momentum after the NITI Aayog’s 2017 report titled "Three-Year Action Agenda (2017-18 to 2019-20)" advocated for hiring domain experts in ministries.

• In June 2018, the government sought applications for 10 Joint Secretary-level posts through lateral entry, receiving over 6,000 applications.

• By February 2019, the UPSC shortlisted 89 candidates for interviews, and 9 candidates were appointed.

• In 2021, the government invited applications for 30 positions, including 3 Joint Secretaries and 27 Directors, receiving over 10,000 applications.

• In July 2021, UPSC after the selection process, recommended 31 candidates through lateral entry.

Statistics of Lateral Entry (2018-2023):

Pros and Cons of Lateral Entry in UPSC

Pros:

• Brings Expertise: Professionals from diverse sectors bring domain-specific knowledge, essential for specialized ministries like health, education, and technology.

• Reduces Skill Gaps: Addresses the shortage of specific skills within the traditional bureaucracy, ensuring better implementation of complex policies.

Cons:

• Cultural Differences: Professionals may face challenges adapting to the bureaucratic culture, which is often more rigid compared to the private sector.

• Perceived Inequity: Lateral entry might be seen as bypassing the regular, merit-based UPSC process, causing dissatisfaction among career civil servants.

• Potential Conflict: Possible friction between career civil servants who have entered through traditional routes and lateral entrants who are perceived as outsiders.

Examples of Successful Lateral Entries

Some of the notable appointments made through lateral entry in UPSC include:

• Amber Dubey: Appointed as Joint Secretary in the Ministry of Civil Aviation, he was previously a partner at KPMG.

• Saurabh Mishra: Appointed as Joint Secretary in the Ministry of Finance (Department of Financial Services), bringing his experience from the insurance sector.

Challenges and Criticisms of Lateral Entry

While lateral entry is aimed at infusing expertise into the system, there are several challenges and criticisms:

• Resistance from Career Bureaucrats: Traditional civil servants may view lateral entrants with suspicion, creating potential resistance.

• Political Influence: There is a risk of lateral entry positions being influenced by political considerations rather than merit.

• Accountability and Performance Measurement: Defining accountability and measuring the performance of lateral entrants can be challenging.

Recent Updates on Lateral Entry in UPSC

In the last few weeks, the Indian government has made many revisions to some of its policies. One such revision of policy that should be considered by the government is the lateral entry system. 

Alongside this, other policy reversals have occurred, such as retracting the Draft Broadcasting Services (Regulation) Bill and referring the Waqf (Amendment) Bill to a joint parliamentary committee. However, the recent step back on the lateral entry system may indicate a different story.

Recent Policy Changes in the Lateral Entry System

The concept of bringing in professionals from outside the civil services at higher administrative levels, such as the Joint Secretary, Deputy Secretary, and Director, through lateral entry, was a significant step toward enhancing governance in India, the government has recently reduced the offering of such lateral entry in UPSC appointments and this has many raised questions.

Background of the Lateral Entry Policy

Lateral recruitment into civil services is an initiative by the Indian government designed to address two primary goals: infusing fresh talent into the bureaucracy and enhancing human resource availability at the middle management level.

Current Status and Statistics of Lateral Recruitment

According to the Department of Personnel and Training's (DoPT) Annual Report for 2022-23, a total of 36 officers were recruited through lateral entry and are currently serving in various ministries and departments. This group includes 9 Joint Secretaries, 18 Directors, and 9 Deputy Secretaries. Notably, 30 of these officers were selected during the 2021 recruitment drive, which resulted in the appointment of 3 Joint Secretaries, 18 Directors, and 9 Deputy Secretaries. 

Eligibility Criteria and Selection Process

On August 17, 2023, the Union Public Service Commission (UPSC) announced another round of recruitment for lateral entry in UPSC positions. This was the second notification within a span of three months, seeking applications for 45 posts under three Group A categories of central government jobs. These positions are offered on a contract or deputation basis for a period of three to five years. The application deadline was set for September 17, 2023.

Eligibility Criteria:

• Joint Secretary Positions: Minimum of 15 years of relevant work experience.

• Director Positions: At least 10 years of relevant work experience.

• Deputy Secretary Positions: 7 years minimum work experience.

Candidates eligible to apply included officers from State and Union Territory governments at equivalent levels, as well as professionals from public sector undertakings, autonomous bodies, statutory organizations, recognized research institutes, universities, private sector companies, consultancy organizations, and international or multinational organizations. Interestingly, the recruitment notification did not mention any reservations for specific categories.

Analysis of the Recent Government Decision

The NDA government's recent decision to reconsider the lateral entry in the UPSC system is significant for several reasons. At first, rolling out lateral entry was done to reform the bureaucracy by bringing in outside talent to fill critical roles, but the recent withdrawal of the government may have been done as the government might have thought about the practical implications again.

Lateral Entry in UPSC System - Implications

The lateral entry system has both supporters and critics. Some people argue that it brings expertise and fresh perspectives which is much-needed to increase efficiency and effectiveness. But some people also criticize saying that, the lateral entry system could affect the traditional civil services framework, leading to arguments between career officials and lateral entrants. 

In June 2018, the Department of Personnel and Training (DoPT) opened the doors for lateral entry into the Indian bureaucracy by inviting applications for the post of Joint Secretary at the Centre. The initial targeted 10 departments including Revenue, Financial Services, and Agriculture, and was planned to expand to other sectors in the next phases. The selected candidates would serve on a contractual basis for three to five years.

Eligibility Criteria for Lateral Entry in UPSC

The eligibility criteria were set to attract professionals with significant experience. The candidates should have experience of at least 15 years in a similar post in the private sector organizations and those candidates who have experience in central public sector undertakings, autonomous bodies, academic institutions, or universities need not apply. A minimum age of 40 years and a graduation degree from a recognized university or institute were required.

Favor of Lateral Entry in UPSC

1. Previous Recommendations: 

The concept of lateral entry has been supported by the Sixth Pay Commission, the Second Administrative Reforms Commission (ARC), the Surinder Nath Committee (2003), and the Hota Committee (2004).

2. Promoting Competition: 

The existing civil service system, which guarantees job security, often reduces the motivation to excel. 

3. Need for Specialists: 

Governance today requires a mix of domain knowledge and relevant expertise, but the current system often turns IAS officers into generalists.

4. Precedents of Lateral Entry: 

Although lateral entry in UPSC is not new in India, it has mostly been in this situation. For example, roles like the Chief Economic Adviser have been filled through lateral entry. 

5. International Practices: 

Countries like the USA, UK, Australia, the Netherlands, and Belgium have adopted lateral entry systems to attract top talent for government positions. 

6. Addressing Shortages: 

There is currently a shortage of more than 1,400 IAS officers and 900 IPS officers in India. Lateral entry could help address the deficit of skilled personnel at higher administrative levels.

Arguments Against Lateral Entry in UPSC

1. Impact on Morale: 

A lateral entry system could demotivate existing government officers, affecting their performance and morale.

2. Cultural and Systemic Differences: 

New entrants from outside the government may struggle with the different work culture and existing systemic inertia. Their lack of familiarity with government functioning could lead to inefficiencies or even exploitation by those more experienced in the system.

3. Lack of Comparable Experience: 

Lateral entrants may lack the experience and knowledge that IAS officers gain through years of service. Their urban-centric perspectives might not always align with the realities of policy formulation, particularly in rural contexts.

4. Potential for Bias: 

There is a concern that lateral entry could lead to the recruitment of candidates favoring the current administration, which could lead to biased policymaking.

5. Short-Term Contracts: 

Hiring highly skilled individuals on three- to five-year contracts might result in them prioritizing short-term gains over long-term national interest, as they do not have a vested interest in the government's long-term goals.

Key Issues with Lateral Entry in UPSC

1. Conflict of Interest: 

Bringing professionals from the corporate world could lead to conflicts of interest, making it necessary to implement a mandatory code of ethics to ensure that private interests do not undermine public welfare.

2. Profit vs. Public Service: 

The private sector's focus on profit-making contrasts with the government's aim to promote public welfare.

4. Broad Recruitment Criteria: 

The lack of specific requirements in the recruitment advertisement can result in a mismatch between the government's needs and the candidate's expertise.

Complementary Reforms for Effective Lateral Entry

1. Central Civil Services Authority: 

To prevent the misuse of the lateral entry system for political patronage, the Administrative Reforms Commission suggested establishing a "Central Civil Services Authority." This autonomous body would ensure a transparent and fair recruitment process.

2. Combining Lateral Entry with Lateral Exit: 

Encouraging civil servants to spend time in various sectors can broaden their skills and improve overall productivity. Hence, lateral exits are as crucial as lateral entries to create a dynamic administrative framework.

Historical Context of Lateral Entry in UPSC

The idea of lateral entry in UPSC isn’t entirely new. The Second Administrative Reforms Commission (2005-2009) recommended the introduction of lateral entry to attract external talent to the higher echelons of government services. Hence, lateral entry in UPSC became a necessity rather than just an experiment.

Impact of Lateral Entry in UPSC on Policy-Making

Since the introduction oflateral entry in UPSC, there has been a noticeable impact on policy-making:

• Agility in Decision-Making: Professionals from corporate backgrounds often bring a results-oriented mindset and have enhanced decision-making abilities. For instance, the Ministry of Commerce's policy frameworks have seen faster turnaround times after inducting lateral entrants with corporate experience.

• Policy Innovation: Lateral entrants have facilitated the introduction of innovative policies. For example, new models of Public-Private Partnerships (PPPs) have been more effectively executed with professionals who have experience in managing such partnerships in the private sector.

Training and Orientation Programs for Lateral Entrants

After their selection, individuals joining through lateral entry in UPSC undergo specific training and orientation programs:

• Customized Induction Programs: The Lal Bahadur Shastri National Academy of Administration (LBSNAA) and other government training institutions conduct short-term induction programs for lateral entrants to familiarize them with the working ethos of the Indian government.

• Mentorship Initiatives: Senior bureaucrats mentor lateral entrants to guide them on government processes and help them integrate better with the existing system.

Way Forward

To address challenges related to vacancies, efficiency, and merit in the civil services, reforms in the lateral entry in UPSC should be supported by the following complementary measures:

1. Establishing a Public Administration University

A dedicated institution for public administration can help develop a strong pool of future civil servants and equip current officers with a deeper understanding of the country’s economy. This university could focus on enhancing domain expertise and managerial skills, vital for effective governance.

2. Deputation of Officers to the Private Sector

Allowing IAS and IPS officers to work in the private sector on deputation would expose them to domain-specific challenges and solutions, fostering expertise and healthy competition. Such cross-sector experiences can also bring innovative approaches to governance.

3. Institutionalized Goal Setting and Tracking

Government departments and ministries should set measurable, outcome-oriented goals with clear timelines. This institutionalized tracking mechanism can ensure accountability and boost the effectiveness of governance processes.

4. Leveraging Mission Karmayogi and Capacity Building Commission

Mid-career training programs under initiatives like Mission Karmayogi and the Capacity Building Commission should be tailored to meet the specific needs of officers recruited through lateral entry in UPSC. This alignment can improve their adaptability and performance in administrative roles.

5. Improved Career Management in Civil Services

• Civil servants should have the opportunity to explore multiple sectors during their early career, followed by specialization in areas that match their interests and government needs.
• Study breaks can be offered to officers to acquire advanced knowledge or specialization in their chosen fields, enhancing their long-term contribution to governance.

6. Introducing a Two-Tier Entry System

The two-tier recruitment model, proposed by D. Subbarao (former RBI Governor), involves:

• A first tier through conventional UPSC exams, targeting candidates aged 25–30.
• A second tier through lateral entry in UPSC, aimed at professionals aged 37–42, bringing expertise and diversity into mid-level and senior bureaucratic positions.

By implementing these measures alongside reforms in the lateral entry in UPSC, India can create a robust and inclusive administrative system, blending traditional civil service expertise with fresh perspectives from diverse sectors.

Comparative Analysis of Lateral Entry Models Globally

The concept of lateral entry in UPSC can be better understood by comparing it with similar models in other countries:

These global models show that lateral entry in UPSC is not an isolated phenomenon but part of a global trend to bring efficiency and innovation into governance.

Long-Term Impact Assessment of Lateral Entry in UPSC

The long-term impact of lateral entry in UPSC is yet to be fully assessed, but initial observations provide some insights:

• Performance Metrics Development: Unlike the typical appraisal systems in government, lateral entrants are often subject to performance metrics that are more aligned with corporate KPIs (Key Performance Indicators).

• Retention Challenges: While lateral entry attracts top talent, retaining these professionals within the bureaucratic framework, which is often perceived as rigid and hierarchical, poses a significant challenge. The lack of flexibility, in some cases, results in early exits of lateral entrants.

Public Perception and Media Coverage of Lateral Entry in UPSC

The public perception of lateral entry in UPSC has been a mix of optimism and skepticism:

• Positive Coverage: Media and public policy experts have generally welcomed the move, especially in sectors like health and finance, where specialists have driven significant reforms.

• Critical Voices: However, some critics argue that lateral entry could lead to bureaucratic elitism and diminish the value of those who rise through the ranks of the traditional civil services. 

Strengthening the Lateral Entry Framework

To strengthen the framework for lateral entry in UPSC, several steps need to be taken:

• Clearer Role Definitions and Expectations: Defining roles and expectations for lateral entrants more precisely to prevent overlap with traditional bureaucrats’ roles.

• Enhanced Collaboration: Creating platforms and opportunities for traditional civil servants and lateral entrants to collaborate effectively, bridging the gap between experience and specialization.

• Feedback and Reforms: Establishing a feedback mechanism to evaluate the performance of lateral entrants and regularly reform the process to adapt to emerging needs.

Difference Between Lateral Entry in UPSC and Normal Entry

Conclusion

Lateral entry in UPSC itself as a concept has been talked of for several years, but the actual implementation is a new taken by the Indian administration. Although there is bound to be resistance, particularly from within the IAS cadre, the government should move forward with these reforms in the national interest. Above I have listed all the details and recent updates about the UPSC lateral entry system. 

Frequently Asked Questions (FAQ’s)

1. Is lateral entry in UPSC allowed?

Yes, lateral entry is allowed in civil services under the Government of India's policy framework. The Union Public Service Commission (UPSC) conducts the recruitment process for lateral entry, primarily for higher-level positions like Joint Secretary and Director in various central government departments. 

2. What is lateral entry in UPSC tenure?

Through UPSC lateral entry the tenure of officers recruited is typically between 3 to 5 years. The contract-based employment allows the government to benefit from the specialized skills of lateral entrants for a specific period, after which their performance is reviewed. Based on their performance, the contract may be extended or terminated.

3. What is a lateral entry in the IAS cadre?

Lateral entry in the IAS cadre refers to the appointment of professionals from outside the conventional civil services through a special recruitment process to serve in senior roles such as Joint Secretaries or Directors in various ministries and departments. 

4. Who is eligible for lateral entry in UPSC positions?

Professionals with a minimum of 15 years of experience in the private sector, academia, or public sector undertakings, and who have reached senior management levels, are eligible for lateral entry. The minimum age requirement is 40 years, and candidates must possess at least a graduate degree from a recognized university or institute.

5. What are the departments where lateral entry is currently allowed?

Initially, lateral entry was allowed in departments like Revenue, Financial Services, Agriculture, Commerce, Civil Aviation, Environment and Forests, and New and Renewable Energy, among others. However, the list can vary depending on the government's requirements.