Karnataka job reservation row: Siddaramaiah draws criticism from Nasscom, industry leaders over controversial bill | India News

NEW DELHI: Karnataka chief minister Siddaramaiah found himself at the receiving end after he in a post on X said that the Cabinet has approved a bill mandating ‘100 per cent’ reservation for Kannadigas in ‘C and D’ grade posts in all private institutions within the state.
The National Association of Software and Service Companies (Nasscom) has expressed its concern and disappointment over the bill.

The industry body said that if implemented it will force companies to relocate in the face of shortage of local skilled talent. It also called for an urgent meeting with the state authorities to discuss the concerns and “prevent the state’s progress from being derailed.”
“In today’s highly competitive landscape, knowledge led businesses will locate where talent is as attracting skilled workers is crucial for success. Globally, there is a huge shortage for skilled talent and Karnataka despite the large pool, is no exception. For states to become a key technology hub a dual strategy is key – magnet for best talent worldwide and focussed investment in building a strong talent pool within the state through formal and vocational channels. 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. Its 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 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. At the same time, the restrictions could force companies to relocate as local skilled talent becomes scarce. nasscom is seeking an urgent meeting for industry representatives with state authorities to discuss the concerns and prevent the state’s progress from being derailed,” said Nasscom in a post on X.
Additionally, other industry leaders including executive chairperson of Biocon Limited Kiran Mazumdar-Shaw and former Infosys CFO TV Mohandas Pai also slammed the draft 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,” said Shaw in a post on X.

Mohandas Pai called the bill fascist and discriminatory. He said that it should be junked immediately.
“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?” said Pai in post 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.

“If the government forces companies to hire only locals, they will likely relocate to places like Pune and Hyderabad. Many corporate leaders in Bengaluru are already upset and frustrated due to inadequate infrastructure such as roads, water, and sewerage systems provided by the government. Now, the government is preventing them from hiring the right talent, leaving them with two options: either shut down or relocate,” said RK Misra, co-founder of Yulu and co-chairman of Assocham.
“The Cabinet meeting held yesterday approved a bill to make it mandatory to hire 100 per cent Kannadigas for “C and D” grade posts in all private industries in the state. 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 Kannadigas,” said Karnataka CM in a tweet.
However he later deleted this tweet amid backlash by industry leaders. He soon after in a tweet clarified that the draft bill fix 50% reservation for administrative posts and 75% for non-administrative posts for Kannadigas in private industries and other organizations of the state.
Meanwhile, Karnataka’s minister for Commerce & Industries MB Patil ssaid that he will discuss the issue issue with Karnataka’s CM Siddaramaiah, IT-BT minister, Law minister, and Labour minister.

“India is currently experiencing a manufacturing and industrial revolution driven by the global China Plus One policy. In this competitive era, states like Karnataka, Maharashtra, Tamil Nadu, and Telangana are striving to be at their best. It is of utmost importance for all states to be at their competitive peak,” said Patil in a post on X.
“Keeping the interests of Kannadigas paramount, I will discuss this issue with the Hon’ble CM Sh @siddaramaiah, IT-BT Minister, Law Minister, and Labour Minister. We will have wider consultations. We will ensure that the interests of Kannadigas are protected, alongside those of the industries. Karnataka is a progressive state, and we cannot afford to lose in this once-in-a-century race of industrialization. We will make sure that everyone’s interests are safeguarded. The Industries are assured that they need not have any fear or apprehensions and can rest assured,” he added.