Indian tech hub Karnataka state’s move to reserve jobs for locals not finalised, chief minister says

BENGALURU, July 17 (Reuters) – Karnataka state’s move to require companies to give 50%-70% of jobs to locals is still in the preparation stage, Chief Minister Siddaramaiah said on Wednesday, after the draft bill was criticised for making it harder for global companies operating there to attract talent.

“A final decision will be taken (on the bill) after comprehensive discussion in the next cabinet meeting,” Siddaramaiah said on messaging platform X in an edited post.

The draft bill, seen by Reuters, requires employers to give 50% of management jobs and 70% of non-management jobs to candidates from the state of Karnataka.

The bill will need clearance from the Karnataka state legislature to become law.

Industry leaders criticised the bill, saying it would discriminate against those from outside the state who want to work there.

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 criticised Prime Minister Narendra Modi’s government for doing too little to tackle joblessness.

Karnataka is not the first Indian state to try to impose job quotas for local candidates. The northern state of Haryana in 2020 tried to impose a 75% job quota for local hires, but a court later overturned it.

“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,” said political analyst Sandeep Shastri.

“This move, to privilege locals, is a response to this sentiment.”

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Hritam reports on Indian companies with added focus on property and infrastructure firms. He previously worked as India reporter with two Vermont, USA-based newspapers. He is an alum of Indian Institute of Mass Communication, New Delhi and St. Xavier’s College, Kolkata.

Haripriya reports on India’s $254-billion Indian information technology (IT) industry, the country’s burgeoning GCCs, as well as new-age startups. With seven years of experience, she has previously reported on politics, civic issues, crime, and breaking news in south India, and tracked the country’s gig economy. She has a degree in Media Studies with a specialisation in journalism from the Symbiosis Centre for Media and Communication.