The recommendation of the commission that caste be the basis for identifying economic and educational backwardness was rejected by the Government of India. The Centre asked the state governments to conduct surveys to identify members of the backward classes, and then to extend them all reasonable facilities.
In 1961, the Centre decided not to draw up any list of OBCs. The states were advised to draw up their own lists using economic tests, rather than going by caste. A number of states decided to use the criteria of occupation and income to classify backward groups.