By increasing the income threshold, the government is acknowledging inflation and rising costs of living, which may have pushed many OBC households previously benefiting from reservations into the creamy layer. The new limit aims to make more individuals from economically backward OBC families eligible for reservations, enhancing their opportunities for upward social mobility.
However, this move has sparked debates around the efficacy and fairness of caste-based reservations. Critics argue that raising the creamy layer limit to ₹12 lakh per year, which is a relatively high income for many parts of India, risks diluting the original intent of reservations. It may allow more affluent individuals to benefit from a system meant for the socially and economically disadvantaged, potentially reducing opportunities for those truly in need within the OBC community. On the other hand, proponents argue that the change will ensure that middle-income OBC families, who still face caste-based social barriers, continue to have access to government benefits in an evolving economic landscape. This decision highlights the ongoing complexities of India's affirmative action policies, balancing socio-economic upliftment with evolving economic realities.