The move of the Karnataka government to bring in reservation in jobs in the private sector for locals is facing sharp criticism from the top leaders of the industry. They argue that the measure will deter the incoming of talent and investment into the state.

On July 15, the Karnataka cabinet gave its nod to a draft bill mandating 50 per cent of management jobs and 70 per cent of non-management roles be reserved for locals in the private sector.

Aside from that, the state government endorsed a 100 per cent quota for Kannadigas in Group C and Group D jobs in the private sector.

Many industry leaders are now saying that the state government’s decision will impact business activities in the state and may even force some to relocate to other states.

Kiran Mazumdar-Shaw, executive chairperson of Biocon Limited wrote on X: “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”.

Former Infosys CFO TV Mohandas Pai also slammed the draft bill. “This bill should be junked. It is discriminatory, regressive, and against the Constitution. This is a fascist bill as in Animal Farm, unbelievable that @INCIndia can come up with a bill like this- a govt officer will sit on recruitment committees of the private sector? People must take a language test?” he wrote on X.

“Industry and companies will push back against this bill,” said Shriram Subramanian, founder and Managing Director of InGovern Research Services. The societal impact on the psychology of citizens (both Karnataka domicile and those outside Karnataka) will be huge. Karnataka doesn’t have enough talent. Industry and jobs will move out of Karnataka. This sets a bad precedent.” he added.