Indian industry still recoils at the idea of bringing a law for job reservation in the private sector, but is ready to work on the concept with some fiscal rewards from the government.

"We would have reservation step by step. Initially five per cent, then 10 or 20 per cent. But those industries, which are implementing it, if they are losing out, should be compensated...like excise benefit and some fiscal incentives," industrialist and Assocham President Venugopal Dhoot told PTI.

The private sector was with the government on affirmative action, but it should not be imposed on them "through an Act of Parliament". Dhoot also sought time for the industry to get more acquainted with the concept of job reservation. "

"Affirmative action is very good, but give us time. We have to educate our industry also that this is the need of the time. Let us give it a trial first," he said.

PMO asks for affirmative action report by industry

"We will be communicating to the prime minister that we are with him. Now the ball is in the court of the government," Dhoot said.

The Assocham president also said industry chambers would be discussing the issue with the prime minister in their upcoming meeting next week and convey their view point, adding that while the industry was all for job reservation for weaker sections, it should not be at the cost of quality.

"Globally, India's brand equity is being admired. Indian industry should do well and this has to be maintained," he said, adding that "the government should also affirm that the flavour the industry has got across the globe is not diluted".