BENGALURU – Karnataka, the Indian state home to the tech hub Bengaluru, has approved a bill mandating companies to reserve 50%-70% of jobs for locals. This move could complicate talent acquisition for global firms operating in the region.
Bengaluru, a metropolitan city in southern India with a population of around 14 million, hosts thousands of Indian startups and international firms, including Walmart and Alphabet’s Google. Indian tech giants Infosys and Wipro also have their operations based in the city.
The draft bill, reviewed by Reuters, stipulates that employers must allocate 50% of management positions and 70% of non-management roles to local candidates. For the bill to become law, it will require clearance from the state legislature.
Industry leaders have criticized the bill, arguing that it discriminates against individuals from outside the state who seek employment in Karnataka. “There must be caveats that exempt highly skilled recruitment from this policy,” stated Kiran Mazumdar-Shaw, executive chairperson at Biocon, a drugmaker.
Mohandas Pai, chairman of Aarin Capital Partners and former finance chief at Infosys, expressed his disapproval on social media, stating, “The bill should be junked. It is discriminatory, regressive, and against the constitution.” The IT industry body Nasscom also urged the state government to withdraw the bill.
The state of Karnataka is led by the opposition Congress party, which has criticized Prime Minister Narendra Modi’s government for not addressing joblessness adequately.
Karnataka is not the first Indian state to attempt imposing job quotas for locals. In 2020, the northern state of Haryana tried to implement a 75% job quota for local hires, but it was later overturned by a court.
“For a few years now, the sentiment in some urban parts of the state has been for greater local protectionism – from bigger nameboards in Kannada to higher job reservations,” explained political analyst Sandeep Shastri. “This move, to privilege locals, is a response to this sentiment.”