Prominent entrepreneurs and industry bodies have spoken out against the Karnataka Congress government’s decision to provide unprecedented reservations to local applicants in the private sector.
Earlier today, the Karnataka Cabinet approved a bill mandating reservation for locals in the private sector. The bill, approved by the state cabinet, directs the appointment of Kannadigas to 50 percent of management positions and 70 percent of non-management positions. The bill also made the recruitment of 100 percent Kannadigas mandatory for lower-grade (Group ‘C and D’) posts in all private industries in the state. “It is our government’s wish that the Kannadigas should avoid being deprived of jobs in the land of Kannada and should be given an opportunity to build a comfortable life in the motherland. We are a pro-Kannada government. Our priority is to look after the welfare of Kannadigas,” Karnataka CM Siddaramaiah had said.
This has invited a backlash from entrepreneurs and industry bodies across the state. Bengaluru-based Kiran Mazumdar-Shaw, the CEO of Biocon warned that the move could affect Bengaluru’s reputation as a business destination. “As a tech hub we need skilled talent and whilst the aim is to provide jobs for locals we must not affect our leading position in technology by this move. There must be caveats that exempt highly skilled recruitment from this policy,” she posted on X.
The move was criticized in even harsher terms by former Infosys CFO Mohandas Pai, who likened it to George Orwell’s dystopian novel on government overreach, Animal Farm. “This bill should be junked. It is discriminatory, regressive and against the constitution. (Congress leader) Jairam Ramesh is govt to certify who we are? This is a fascist bill as in Animal Farm, unbelievable that Congress can come up with a bill like this- a govt officer will sit on recruitment committees of private sector? People have to take a language test?” he posted on X.
Industry body Nasscom also slammed the bill, saying it would drive companies away from Karnataka. “Nasscom members are seriously concerned about the provisions of the bill and urge the state government to withdraw the bill. The bill’s provisions threaten to reverse progress, drive away companies, and stifle startups, espeically when more global firms are looking to invest in the state. At the same time, the restrictions could force companies to relocate as skilled local talent becomes scarce,” it said in a statement.