The Karnataka government has decided to pause a controversial bill aimed at mandating reservations for locals in the private sector following strong opposition from industry stakeholders. The bill, titled the Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, was put on hold just hours after it was cleared by the state cabinet.

Initially set to be tabled in the state Assembly on Thursday, the bill proposed reserving 50 percent of management positions and 75 percent of non-management positions in private companies for Kannadigas, the local population of Karnataka.

Chief Minister Siddaramaiah had championed the bill, describing his government as “pro-Kannada” and emphasizing the welfare of Kannadigas as a priority. However, the IT industry, crucial to Bengaluru’s economy, raised concerns that such legislation could hinder growth and affect job prospects in the technology sector.

In response to industry backlash, Nasscom, representing the software industry, voiced serious concerns over the bill’s provisions, warning that it could reverse progress, deter companies from investing in Karnataka, and stifle startup initiatives.

Deputy Chief Minister DK Shivakumar initially defended the bill, citing the government’s commitment to uphold Kannadiga interests in various aspects. However, in light of the criticism, he later adopted a more conciliatory approach, indicating a willingness to engage with industry stakeholders to address their concerns.

Another state minister, Priyank Kharge, highlighted that consultations with the industry and relevant ministries were essential before finalizing the bill’s rules. He emphasized the importance of broader consultations to ensure that any legislation would not adversely impact Karnataka’s investment climate or economic growth.

The decision to hold the bill reflects a delicate balancing act for the Karnataka government between promoting local interests and maintaining a business-friendly environment to attract investment and foster economic development, especially in the technology sector.

Leave a Reply

Your email address will not be published. Required fields are marked *