The Other Backward Classes (OBCs) as a separate category was recognised by Indian polity only in 1990. Before that the usage of the term was restricted to only the power corridors and reservation in government jobs and educational institutions was restricted to the Scheduled Castes and Scheduled Tribes communities.

Due to lack of updated data on Caste, the Mandal Commission used the Census of 1931 and some sample studies. Eleven indicators were used to determine 'backwardness' of communities. The Commission pointed out that people belonging to 3,743 different castes and communities were backward and that they encompassed 52 per cent of the Indian population. Based on this number, the Commission advocated 52 per cent reservation for OBCs. Since that would go against the upper limit of 50 per cent reservation, set by a 1962 judgment of the Supreme Court, the Commission recommended 27 per cent reservation.

Over the years, the Federation has transformed itself as the only national organization representing not only Central Government OBC employees but overall interests and welfare of OBC people of this country.

At present, the Federation has nearly 40 OBC associations representing Central Government and PSUs.