BENGALURU:  Two days after the Karnataka cabinet approved a bill mandating reservation for locals in the private sector jobs, the state government came under heavy backlash and across-the-board criticism from both industry and trade bodies and the opposition, led by the BJP, targeting the Congress government forcing it to rethink and putting the bill on hold.  

The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024 was cleared by the state Cabinet on Monday and was expected to be tabled in the assembly on Thursday. The bill stated that any industry, factory or other establishments shall appoint 50 per cent of local candidates in management categories and 70 per cent in non-management categories. Which meant, mandating a '100 per cent' reservation for Kannadigas in 'C and D' grade posts in all private institutions within the state.

"The bill approved by the Cabinet to provide reservation for Kannadigas in private sector organisations, industries and enterprises has been temporarily put on hold. This will be revisited and decided in the coming days," a statement issued by the Office of the Chief Minister said on Wednesday.

The CM posted on X, saying that a final decision would be taken after a comprehensive discussion in the next cabinet meeting. He further posted, "It is our government's wish that the Kannadigas should avoid being deprived of jobs in the land of Kannada and should be given an opportunity to build a comfortable life in the motherland. We are a pro-Kannada government. Our priority is to look after the welfare of the Kannadigas."

The announcement of the bill drew widespread criticism and among the first to react was The National Association of Software and Service Companies (NASSCOM) which expressed its concern and disappointment over the bill. The trade body released a statement on X and said, "It's deeply disturbing to see this kind of bill which will not only hamper the growth of the industry, impact jobs and the global brand for the state. nasscom members are seriously concerned about the provisions of this bill and urge the state government to withdraw the bill."

The statement reminded the state government that the technology sector has been crucial to Karnataka's economic and social development, with Bengaluru known globally as India's Silicon Valley. "The technology sector contributes almost 25% of the state GDP and has played a key role in enabling higher growth for the state, higher per capita income than the national average. With over a quarter of India's digital talent, the state houses over 30% of the total GCCs and around 11000 start-ups," the note further said adding that the bill's provisions threaten to reverse this progress, drive away companies, and stifle startups, especially when more global firms (GCCs) are looking to invest in the state. 

Another national trade body the ASSOCHAM, Karnataka co-chairman R K Misra said on 'X', "Another genius move from Govt of Karnataka. Mandate LOCAL RESERVATION & APPOINT GOVT OFFICER IN EVERY COMPANY to monitor. This will scare Indian IT & GCCs. Short-sighted." Industry leaders like Kiran Mazumdar-Shaw, chairperson of Biocon Limited and former Infosys CFO TV Mohandas Pai also criticised the draft bill.