Karnataka Approves Reservation For Locals In Private Sector; Industry Raise Concerns

The Siddaramaiah government in Karnataka has approved a bill mandating reservations for locals in the private sector. The bill, sanctioned by the state cabinet, mandates that 50% of managerial positions and 75% of non-managerial positions be filled by Kannadigas. The decision has sparked significant opposition from the industry.

Chief Minister Siddaramaiah initially announced the decision on X, stating that the state cabinet had approved a bill on Monday mandating that Kannadigas fill 100% of lower-grade (Group ‘C and D’) posts in all private industries in the state. However, he later deleted the post amidst the backlash.

In a clarification on X, Siddaramaiah explained, “The cabinet meeting on Monday approved a bill stipulating 50% reservation for administrative roles and 75% for non-administrative roles for Kannadigas in private industries and other organizations in the state.”

He justified the decision by stating that the government aims to ensure Kannadigas can access opportunities in their homeland and build prosperous lives there.

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Private sector reacts strongly

However, the move prompted strong reactions from industry leaders such as Kiran Majumdar Shaw, Chairperson of Biocon, who expressed concerns on X, saying, “As a tech hub, we need skilled talent. While the intention is to provide jobs for locals, we must ensure that this policy does not compromise our leading position in technology. There should be exemptions for highly skilled recruitment.”

The National Association of Software and Service Companies (NASSCOM), the apex body for the technology industry, also criticized the move, stating, “NASSCOM members are deeply concerned about the provisions of this bill and urge the state government to withdraw it. These provisions could hinder progress, drive away companies, and stifle startups, particularly as global firms are eyeing investments in the state. Moreover, these restrictions may force companies to relocate as local skilled talent becomes scarce.”

In response to the backlash, Karnataka Deputy CM DK Shivakumar defended the decision, stating, “Investors need not worry. We want investors to come to Karnataka. Talented individuals from outside the state are welcome to work here. Bengaluru’s population has grown to 1.4 crores due to outsiders coming here for work. We simply want to ensure opportunities for locals. We are equally concerned for both employers and employees and will explore avenues to accommodate Kannadigas.”