Karnataka government pauses controversial job reservation bill amid tech industry backlash

In response to strong opposition from major technology firms, the Karnataka government has decided to review the reservation bill that guarantees jobs for Kannadigas. The Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024, which proposes job reservations in the private sector, has drawn significant criticism from Nasscom and other tech industry leaders.

Also read: Karnataka only for Kannadigas? What’s the controversy over Employment Bill?

Nasscom, the representative body of India’s $200 billion technology sector, expressed serious concerns about the bill, which mandates reserving 50 percent of management positions and 75 percent of non-management roles for Kannadigas. The organization warned that such measures could adversely impact Karnataka's business environment and its attractiveness as a tech hub.

Prominent voices in Karnataka’s tech industry, including Kiran Mazumdar-Shaw and Mohandas Pai, have also condemned the bill. Mazumdar-Shaw, Chairperson of Biocon, highlighted the potential threat to Bengaluru's status as a global technology center. She stressed the need for skilled talent and suggested exemptions for highly specialized recruitment to prevent negative consequences for the industry.

Mohandas Pai, former CFO of Infosys, labeled the bill as discriminatory and regressive. He criticized the government's intervention in private sector hiring practices, calling the proposed legislation fascist. Pai specifically objected to mandatory language tests and the presence of government officers on private sector recruitment committees, arguing these measures violate constitutional principles.

The bill, tabled in the current assembly session, has ignited a heated debate across the state. Supporters believe it will boost local employment, while opponents fear it may stifle innovation and economic growth. As discussions continue, stakeholders await further developments amid ongoing tensions over the proposed legislation.