Former Infosys CFO TV Mohandas Pai has termed Karnataka's government's move to reserve jobs in private sector for locals as fascist. Pai was among the many industry leaders who expressed disbelief on the Bill, warning that it would drive away investors and exacerbate corruption.
The Karnataka cabinet approved the draft State Employment of Local Candidates in Industries Factories and Other Establishments Bill, which mandates reserving 50 percent of management jobs and 75 percent of non-management jobs for Kannadigas. This bill covers the entire private sector, including the IT industry, and is set to be tabled in the current assembly session.
Companies can apply for exemptions, with some relaxations permitted under specific conditions. Non-compliance could result in fines ranging from ₹10,000 to ₹25,000, and a daily penalty of ₹100 until compliance is achieved.
"This bill should be junked. It is discriminatory, regressive, and against the constitution. Is the government to certify who we are? This is a fascist bill, like something out of Animal Farm. Unbelievable that the INC can come up with a bill like this – a government officer sitting on recruitment committees of the private sector and people having to take a language test?," Pai posted on X.
Kiran Mazumdar-Shaw, executive chairperson of Biocon, also voiced her concerns on the Bill. “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 wrote.
Shriram Subramanian, founder and Managing Director of InGovern Research Services, weighed in, predicting significant pushback from industry and companies. “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 remarked.
In response to the backlash, Karnataka Labour Minister Santosh Lad reportedly questioned the severity of the industry's reaction, in an interaction with India Today. "Why are industry leaders saying it’s a draconian law? Don’t we have merit among Kannadigas?"
He assured that the government is open to discussions and clarified that the specifics of management and non-management roles are still being defined. Lad emphasized that the bill has undergone legal scrutiny and that the reservations apply to management and non-management roles, not group ‘C’ and ‘D’ jobs.