Kiran Mazumdar-Shaw Opposes Karnataka's Job Quota Bill, Minister Responds

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New Delhi:

Kiran Mazumdar-Shaw, the founder of pharmaceutical giant Biocon, on Wednesday opposed the proposal to reserve private jobs for local hires in Karnataka, which houses the country’s information technology hub Bengaluru.

Taking to her official X account, Ms Shaw said highly skilled recruitment must be exempted from the Karnataka government’s decision mandating reservation for Kannadigas in private firms.

She also said the job reservation for locals must not affect 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, said wrote on X.

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. @siddaramaiah@DKShivakumar@PriyankKhargehttps://t.co/itYWdHcMWw

— Kiran Mazumdar-Shaw (@kiranshaw) July 17, 2024

Her post drew a response from Karnataka’s Minister for Information Technology and Biotechnology Priyank Kharge, who said “no detrimental rules or laws will be enforced without due consultations with stakeholders”.

“Karnataka has always led the nation in economic growth and we continue to do so,” he said.

Citing that Karnataka is the fourth largest technology cluster in the world, number 1 in the India Innovation Index, and first in IT service exports, he said the state has 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.”

“As always, we will consult with industries, industry bodies, and thought leaders to ensure we foster a favorable environment for investments and job creation for locals while addressing the needs of the global workforce,” the Congress leader said.

Karnataka is the 4th largest technology cluster in the world and are leaders in the country in many verticals.

We are No. 1 in India Innovation Index

1st in IT service exports

Top 3 in FDI inflows

We have 40% share in Electronics Design in India

In Machine Tools… https://t.co/Sh2fJkE5rG

— Priyank Kharge / ಪ್ರಿಯಾಂಕ್ ಖರ್ಗೆ (@PriyankKharge) July 17, 2024

Many other leading figures from the industry also spoke out against the Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, which was approved by Chief Minister Siddaramaiah-led cabinet on Monday.

The bill requires firms in India’s IT capital to prioritise local hires for 70 per cent of non-management roles and 50 per cent of management-level jobs. The state government, however, paused the bill after backlash.

Row Over Karnataka’s Job Quota Bill

Former Infosys chief financial officer Mohandas Pai said the bill was “discriminatory” and “regressive”.

“This bill should be junked. It is discriminatory, regressive, and against the Constitution. This is a fascist bill as in Animal Farm,” he said on X.

The National Association of Software and Service Companies (NASSCOM) also expressed disappointment and concern over Karnataka’s new bill mandating reservation for locals in private sector jobs.

In a statement, it 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,” it said.