Industry Giants Slam Karnataka Govt's Job Reservation Bill, Label It As 'Discriminatory'

The Karnataka government's proposal to reserve 50% of management jobs and 70% of non-management roles in the private sector for locals has drawn sharp criticism from industry leaders, who fear it will deter talent and investment from flowing into the state.

The bill, which also mandates 100% reservation for Kannadigas in Group C and Group D jobs (blue-collar workers) in the private sector, has been met with widespread opposition from industry leaders. Kiran Mazumdar-Shaw, executive chairperson of Biocon Limited, warned that the move could impact the state's reputation as a tech hub and deter skilled talent.

Former Infosys CFO TV Mohandas Pai slammed the bill, calling it "discriminatory, regressive, and against the Constitution." He questioned why a government officer would sit on recruitment committees of private sector companies.

Industry leaders pointed out that the Punjab and Haryana High Court had quashed a similar law guaranteeing 75% reservation in private sector jobs for residents of Haryana. They argued that the draft bill violates Articles 14 and 19 of the Constitution, which guarantee equality and the right to reside and work anywhere in the country.

RK Misra, co-founder of Yulu and co-chairman of ASSOCHAM, warned that if companies are forced to hire only locals, they will likely relocate to other states like Pune and Hyderabad. Many corporate leaders in Bengaluru are already frustrated with inadequate infrastructure provided by the government.

To address Karnataka's skilled manpower shortage, Misra suggested a government-funded internship/apprenticeship program to allow companies to assess and hire suitable candidates.

Nooraine Fazal, co-founder and CEO of Inventure Academy, urged the government to prioritize investing in education, entrepreneurship, and upskilling initiatives to ensure equal opportunities for all citizens.

The bill has also been met with criticism from an industry veteran who spoke on condition of anonymity, who called it a "disaster" that will deter investors and lead to significant chaos.

However, pro-Kannada organizations welcomed the bill, saying it will create more job opportunities for locals. The labour department officials said that while the cabinet has approved the draft bill, it is yet to be tabled in the legislature.

Karnataka is home to over 5,500 IT and ITES companies and around 750 multinational companies, providing direct employment to over 1.2 million professionals and generating over 3.1 million indirect jobs.