New Delhi, July 18, 2024 – Kiran Mazumdar-Shaw, the founder of pharmaceutical giant Biocon, has voiced her opposition to the recent proposal mandating job reservations for local hires in Karnataka’s private sector. The state, home to the country’s information technology hub, Bengaluru, has sparked significant debate with this move.
Taking to her official X account, Ms. Shaw expressed concerns about the potential impact of the Karnataka government’s decision on the state’s leading position in the technology sector. “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.
Government Response
Responding to her post, Karnataka’s Minister for Information Technology and Biotechnology, Priyank Kharge, assured that no detrimental rules or laws would be enforced without thorough consultations with stakeholders. “Karnataka has always led the nation in economic growth and we continue to do so,” he said.
Highlighting the state’s achievements, Kharge noted that Karnataka is the fourth largest technology cluster in the world, ranks number one in the India Innovation Index, and is first in IT service exports. “We have achieved these milestones and many more because our Government consistently engages with all stakeholders to draft policies and schemes that boost investments and create more employment opportunities,” he stated.
Kharge emphasized that the government would continue to consult with industries, industry bodies, and thought leaders to ensure a favorable environment for investments and job creation while addressing the needs of the global workforce.
Industry Reactions
The Karnataka State Employment of Local Candidates in the Industries, Factories, and Other Establishments Bill, 2024, approved by Chief Minister Siddaramaiah-led cabinet on Monday, has faced significant backlash from industry leaders. The bill mandates that firms in India’s IT capital prioritize local hires for 70 percent of non-management roles and 50 percent of management-level jobs. Following the backlash, the state government has paused the bill.
Former Infosys Chief Financial Officer Mohandas Pai labeled the bill “discriminatory” and “regressive.” He took to X to express his concerns, stating, “This bill should be junked. It is discriminatory, regressive, and against the Constitution. This is a fascist bill as in Animal Farm.”
The National Association of Software and Service Companies (NASSCOM) also expressed disappointment and concern over the new bill. In a statement, NASSCOM said, “Nasscom and its members are disappointed and express deep concern regarding the passage of the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024. Restrictions could force companies to relocate as local skilled talent becomes scarce.”
Future Implications
As the debate continues, the Karnataka government is expected to engage in further consultations with industry stakeholders to address concerns and potentially revise the bill. The outcome of these discussions will be crucial in determining the future landscape of private sector employment and economic growth in the state.
For continuous updates on this developing story, stay tuned to Sarhind Times.
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