The Second Administrative Reforms Commission (ARC), which was founded in 2005, firmly supported the notion of lateral entrance when it was originally presented under the 2004–09 law. Later, in 2017, NITI Aayog suggested bringing in knowledge and new viewpoints. The induction of middle and senior management personnel in the central government was proposed by the Sectoral Group of Secretaries (SGoS) on Governance and NITI Aayog in their 3-year Action Agenda of 2017.

Eligibility:

• Those with experience in the appropriate domains and domain knowledge from the commercial sector, state governments, autonomous bodies, or public sector initiatives are welcome to apply for these roles.
• The selection criteria usually prioritise subject matter expertise and professional accomplishment.

Reservation in Lateral Entry:

• The “13-point roster” guideline has prevented Lateral entries from being included in the reservation system.
• A candidate’s placement on a list of job opportunities is determined by applying the “13-point roster” policy, which uses a fraction of one hundred to calculate the candidate’s group quota percentage (SC, ST, OBC, and EWS).
• Since every lateral entry position is regarded as a “Single Post,” these appointments can be made without according to reservation standards because the reservation system does not apply to them.
• For each department, 45 positions have been separately posted in the current recruitment round. Reservations would be in place, with special allocations for SC, ST, OBC, and EWS candidates if they were to be viewed as a single category.

Process of Lateral Entry Recruitment

• Selection process – by the Union Public Service Commission (UPSC).
• The UPSC is requested by the Department of Personnel and Training (DoPT) to handle the lateral entrance selection procedure.
• UPSC invites online applications
• Submission of application- the UPSC conducts interviews of the shortlisted candidates.
• Recommendation of the list of selected candidates to the DoPT.
• The government then appoints the suggested candidates, usually for a term of three to five years.

ARC Recommendations

• First Administrative Reforms Commission (ARC) (1966): It was founded with the goal of professionalizing and overhauling personnel management and training within the public services, and Morarji Desai served as its chairman.
  Even while it did not openly support lateral entry, it set the stage for addressing the demand for specialized knowledge in the bureaucracy.
• Second Administrative Reforms Commission (ARC) (2005): It suggested changes to increase the efficiency, openness, and citizen-friendliness of the Indian administrative system.
• The ARC highlighted the necessity of lateral access into higher government positions in its 10th Report, as it can facilitate the introduction of specialized knowledge and abilities that may not always be found in regular civil services.
• It suggested hiring experts from the business world, academic institutions, and government projects to build a talent pool for contract or temporary positions.
  The ARC also emphasized integrating lateral entrants while maintaining public service integrity and suggested a transparent, merit-based selection process.

Rationale

• Need for specialists and fresh talent- The inclusion of professionals from diverse backgrounds can help in invigorating the bureaucracy with new ideas and innovative approaches. For ex-The generalist civil servants often lack domain specific knowledge and fail to incorporate the views of other stakeholders such as private sector, NGO’s etc.
• Meeting the shortage of Personnel at the centre- The Baswan Committee (2016) had pointed to the unwillingness of large states like Bihar, Madhya Pradesh and Rajasthan in sponsoring officers for central deputation, due to deficit of officers in their states. The lateral entry of officers can help in addressing the shortage of staff at the central level.
• Strengthening of participatory Governance-The lateral entry also aims to strengthen participatory governance, by providing the private sector and NGOs an opportunity to participate in the governance process.
• Improvement of Governance efficiency-The recruitment of private individuals as consultants, officers on special duty by Central government ministries has given fruitful results in the past. For ex- Appointment of Montek Singh Ahluwalia (Planning Commission), Vijay Kelkar (Ministry of Finance) and Parmeshwaran Iyer (Swacch Bharat Mission).
  Thus, there is a need for encouraging private participation at middle-level positions to improve efficiency.
• Fixing the flaw in public service recruitment-There are many potential and good administrators who do not participate in examinations conducted by the government during their young age. Lateral entry provides an opportunity for them, to be part of the governance machinery and contribute to nation building.
• Promotion of Healthy competitive spirit-Lateral entry aims to promote a sense of healthy competition in bureaucracy. It induces generalist civil servants to develop expertise in areas of their choice.
• Bridging Public-Private Gap-After the economic reforms in 1991, the Indian government has taken up the role of a facilitator of public services. Private sector has assumed a greater responsibility for capital expenditure, investment, and development.
  Lateral entry provides a platform for greater collaboration between the government and private sector. It allows stakeholders like industry experts and non-profits to participate more directly in the governance process.
• Inline with Global best practices- Countries like United States, Belgium, the UK, Australia and New Zealand have institutionalized the practice of lateral entry, as a permanent part of their system. In countries like the United Kingdom and Ireland, the selection of officers is on the criteria of work experience in the civil as well as the private sector.

Pros

1. Active government: In the modern era, the government is evolving into a multi-actor, participatory endeavour. By means of lateral entry, stakeholders like non-profits and the corporate sector can get involved in the governance process.
2. Bringing about a Change in Work Culture: It will assist in changing the government sector’s work culture, which is criticized for its rule-book bureaucracy, status quo, and red tape.
3. Closing the Gap: Data from the Department of Personnel and Training indicate that there is a 1500 IAS officer shortage. Lateral entry may be useful in bridging this gap.
4. Innovation and Reforms: By contributing their rich expertise from the private sector, non-governmental organizations, or other organizations, lateral recruiters can assist improve and changing administrative procedures and governance.
5. Specialized experience and Expertise: As governance grows more complicated, lateral entry enables the government to hire specialists with experience in fields like technology, management, and finance, filling in knowledge gaps that generalist civil servants might not have.

Cons

1. Short Tenure: The three-year term that the Central government has established for joint secretaries is insufficient for newcomers to completely adjust to the intricate governance structures and make significant contributions.
2. Preserving Objectivity and Neutrality: Including people from different backgrounds may make it more difficult to remain impartial and objective because of possible conflicts of interest and questions about impartiality, particularly if new hires have ties to interest groups or private businesses.
3. Effect on the Morale of Permanent Officers: The growing number of lateral hires may cause a gulf between them and permanent staff members, which could be detrimental to career bureaucrats’ morale.
4. Possible Dilution of Merit-Based Recruiting: The civil services’ foundational merit-based recruiting system may be weakened by lateral entry. It could give the impression that the selection process is biased or nepotistic if it is not carried out transparently.
5. Outsider Syndrome: Because they are apprehensive about upsetting the status quo and causing chaos, traditional bureaucrats may be hostile to lateral entrants and see them as outsiders.
6. Experience Requirement for Senior Positions: Under the permanent system, IAS officers who have served for 17 years—typically at an age of 45—are promoted to the joint secretary level, where they stay for 10 years. The best prospects may be discouraged from joining if lateral entrants are subject to similar experience criteria since they often reach their professional zenith in the private sector at that age.
7. Potential Conflict of Interest- There are concerns regarding potential conflict of interest arising in policy formulation. Private people may be focused on profit maximization, while government officials aspire to public service.

Lateral entry in other countries

• Several countries, including the US, UK, Australia, New Zealand, and Belgium, have implemented lateral entry systems, allowing movement between government and private sector roles. 
• This “revolving door” model, while offering benefits like specialized expertise, faces criticism for potential conflicts of interest and undue influence, especially in industries like pharmaceuticals, energy, and defense. 
• Concerns about this practice extend to various countries, with a particular focus on the energy and fossil fuel sector.

Road ahead

     Like competition in any area, lateral entry has its advantages, but to guarantee that it leads to positive change, entry requirements, job roles, staffing levels, and training must be carefully considered. In addition, extensive administrative improvements require changes to the conventional seniority-based structure.

• Maintenance of balance- The government needs to maintain a fine balance between the career civil servants and the lateral entrants. The number of lateral entrants should be kept optimal and minimal.
• Phased Implementation- The lateral entry program should be implemented in a phased manner by taking feedback and outcomes from initial recruitments. This will ensure that the integration of private sector professionals is smooth and effective.
• Implementation of reservation policy- The lateral entry system should aim to implement the ‘13 point roster system‘ which provides for reservation. This will address the concerns of the SC, ST and OBC communities, regarding their perceived marginalisation.
• Clearly defined recruitment rules and procedures- The recruitment and service rules for lateral entry posts need to be clearly defined and made incentive-compatible. For ex- A entry-level test to check the analytical skills, judgement capabilities, and personality traits.
• Steps for assimilation with bureaucratic structure- A greater weightage can be provided for ‘prior consultation work’ with the government, as these people will face less difficulty in assimilation with the bureaucratic structure.
• Exploration of Allocation of cadres- The option of allocating cadres for lateral entrants can be explored. These lateral entrants can be put for at least one year under State governments, for field level training and exposure.
• Restriction to few technical sectors- The appointment should be restricted to sectors of finance, economy and infrastructure, which are technical in nature. It should not be extended to Home, Defence, Personnel etc.

       The performance of the Indian bureaucratic structure can definitely be complemented with the lateral entry process. Lateral entrants can complement the regular government officials by bringing in new outside talents, pushing the government officials to work more for public welfare, etc. But a definite policy is the need of the hour to make the system of lateral entry more inclusive, transparent and effective.