Bengaluru: Karnataka govt’s controversial decision to introduce job reservations for “local candidates” in the private sector faced a severe backlash from industry bodies and the business community, forcing chief minister Siddaramaiah to retract, at least temporarily. Late at night, the CMO released a message stating: “The job reservation bill for Kannadigas, cleared by the state cabinet, has been temporarily put on hold. The same will be reviewed in detail once again at the next cabinet meeting, and a decision will be taken.”
The bill, to the consternation of industrial and business communities, stipulated 50% reservation for “locals” in managerial roles and 70% in non-managerial positions across industries, factories, and other establishments.
Caught unawares by the state govt’s move, which seems to have had little to no input from the private sector, industry and the business community made their displeasure known loudly and clearly.
Industry body Nasscom, representing the vital technology sector, voiced apprehensions over the bill’s potential impact on Karnataka’s status as a global technology hub. Nasscom highlighted the sector’s substantial contribution to the state’s GDP and its role as a magnet for digital talent. It said stringent local employment mandates could deter investment and force companies to relocate.
Kiran Mazumdar-Shaw, executive chairperson of Biocon, too echoed these sentiments, emphasising the need for exemptions in the bill to safeguard Karnataka’s technological leadership.
Former Infosys CFO TV Mohandas Pai vehemently criticised the bill, describing it as “fascist” and “discriminatory” and drawing parallels with authoritarian measures.
