The Karnakata government has decided to put its controversial job reservation bill on hold amid a massive backlash.
Chief minister Siddaramaiah said on Wednesday that the bill will be revisited and future course of action will be decided in the coming days.
“The bill approved by the Cabinet to provide reservation for Kannadigas (locals) in private sector organisations, industries and enterprises has been temporarily put on hold,” he announced on X.
The bill, cleared on Monday by the Cabinet, requires firms in India’s IT capital to prioritise local hires for 70 per cent of non-management roles and 50 per cent of management-level jobs.
If the candidates do not have secondary school certificates with Kannada as a language, they would have to pass a Kannada proficiency test, the bill stipulated.
While announcing the move on Tuesday, Mr Siddaramaiah said his “pro-Kannada government” would ensure all “Kannadigas get an opportunity to lead a comfortable life in the motherland... and avoid being deprived of jobs in the land of Kannada”.
But the provision drew flak from industry leaders like Biocon’s executive chairperson Kiran Mazumdar-Shaw and the opposition, led by the Bharatiya Janata Party, as they argued that Bengaluru will lose skilled talent if such a bill is adopted.
Some businesspersons called it “discriminatory” while others acknowledged the need to ensure jobs for locals but added caveats.
“Another genius move from Government of Karnataka. Mandate local reservation and appoint government officer in every company to monitor. This will scare Indian IT and Global Capability Centres. Short sighted,” Associated Chambers of Commerce and Industry of India co-chairman R.K. Mishra said.
The National Association of Software and Service Companies, which represents India’s US$200 billion ($268 billion) technology industry, sought the bill’s withdrawal, saying it “threatens to drive away companies”.
“The restrictions could force companies to relocate as local skilled talent becomes scarce,” the top industry body said.
