After receiving criticism from software companies, the state of Karnataka in southern India has halted a act that required quotas for locals in private industry jobs.
The bill was approved by the state government on Monday, causing protests from leading industrialists and opposition figures.
The act requires companies to stockpile 70 % of non-management and 50 % of administration jobs for locals.
Chief Minister Siddaramaiah stated on Wednesday that the costs may be discussed at the upcoming case conference before a decision was taken.
The announcement came a day after he posted on X ( formerly Twitter ) that the bill would reserve” 100 %” of jobs for Kannadigas ( natives who speak Karnataka’s local language Kannada ).
The article was broadly shared on X and sparked business leaders ‘ criticism.
Mr Siddaramaiah deleted his post after the state’s Labour Minister Santosh S Lad clarified that jobs could be “outsourced” if skill sets were not available locally.
However, he said,” the government is trying to pass a law to give preference to directly available knowledge.”
In India, for a bill passed by a position to become a laws, it has to be approved by the state’s council and get the governor’s approval.
The new allotment bill has currently sparked widespread anger because it is still some way off these lines and may even return to the drawing board.
Bengaluru ( formerly Bangalore ) city- which is the state’s capital- is home to several top global information-technology ( IT ) firms like Google and Infosys, as well as start-ups.
Additionally, it has a number of prestigious executive and IT colleges, making it a popular choice for those seeking work or study in the technology industry.
One of the most liberal employers in India is the capital, where job seekers from all over India work. However, some of the local people are upset about this because they claim that workers are removing their work.
But, businessmen worry that the new bill will devalue the city’s cultural heritage and sap its talent.
India’s top technology association, the National Association of Software and Service Companies ( Nasscom ), expressed its disappointment over the bill.
It said in a statement that the new bill would hamper the growth of the tech industry, force companies to relocate and stifle the growth of start-ups. It also sought an urgent meeting with the state’s authorities to discuss its concerns.
Kiran Mazumdar-Shaw, who heads one of India’s leading medical businesses- Biocon- which has its business in Bengaluru, even criticised the costs.
“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,” she posted on X and called for “caveats that exempt highly skilled recruitment from this policy”.
This is not the first time laws that target outsiders and benefit locals have drawn criticism in the state.
After years of protests calling for preference to be given to Kannada language in business establishments, the government in February passed a law mandating that 60% of text on all signboards in the state should be in the local language.
The Karnataka High Court, however, ordered the government to refrain from coerciously punishing establishments that did n’t follow the law after receiving criticism from various sections, including businesses in Bengaluru where many people are fluent in English and do n’t speak the native tongue.