Karnataka govt announces quota for locals in pvt firms, industries call move 'regressive'

Karnataka Chief Minister Siddaramaiah on 16th of July courted a massive row with his post on social media that can perhaps impact how private firms would function in the state.

The 75-year-old Karnataka leader had declared that their Cabinet on 16th of July approved a Bill that gives 100 per cent reservations for the Kannadigas in all Group C and Group D posts in private companies.

Hours later, he deleted his post on X, prompting the state's Labor Minister Santosh S Lad to issue a clarification to ANI news agency.

"At the management (level), it has been decided to provide reservations to 50% of the people. At the non-management level, it has been decided to provide work to 70%."

"If such skills are not available, people can be outsourced and they can be given work here. But the government is trying to bring in a law to give preference to locally available skills - if it is available here," Lad said.

Despite the government's clarification, several industrialists slammed the proposed move, with some even calling it fascist and regressive.

"If you want to promote Kannadigas for jobs, spend more money on higher education. Give training to them. Spend more money on skill development. Spend more money on internships, spend more money on apprenticeship programs. So they all become skilled. Not like this. What are you trying to achieve by this?" Businessman and philanthropist TV Mohandas Pai told ANI news agency.

Another Indian entrepreneur Kiran Mazumdar-Shaw said that the government must try to balance between attracting highly skilled employees from other states and providing jobs for locals.

"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 said on X.

IT industry group NASSCOM also expressed its disappointment with the Congress government in Karnataka. They said that the proposed move would l hamper the growth of the tech industry, impact jobs, and could force companies to relocate.

It has sought an urgent meeting with the state authorities.

Santosh S Lad said that the government would soon be meeting with the industry representatives on the issue.