While, from the very beginning, other countries have used various affirmative action policies in both public and private sectors, India confined such a policy only to the state and public sectors and excluded the vast private sector. This paper examines the issues involved in the extension of affirmative action policy to the private sector in India. In the light of empirical findings and international experience, the paper suggests that the government could enact the Equal Opportunity Laws to provide legal safeguards against discrimination and proceed with the effective implementation of the recent initiative by the Ministry of Minority Affairs, Diversity Index. The incentive based system linked to Diversity seems to be a long term and more efficient solution to ensure that the marginalized social groups will get a larger share in the private sector. Keywords : Affarmative action policies, Equal oppurtunity laws