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New Delhi:
Kiran Mazumdar-Shaw, founder of pharmaceutical giant Biocon, on Wednesday opposed a proposal to reserve private jobs for local hires in Karnataka state, home to India’s information technology hub Bengaluru.
Shaw, on his official X account, said recruitment of highly skilled workers should be exempted from the Karnataka government’s decision to mandate reservation for Kannadas in private companies.
She also said job security for locals should not impact the state’s leadership position in the technology sector.
“As a tech hub, we need skilled talent and although the goal is to provide jobs for local residents, this measure should not affect our tech leadership. There should be an exception to this policy for the recruitment of highly skilled talent,” he wrote to X.
As a technology hub, we need skilled manpower and this move should not affect our leadership position in technology, even though it aims to provide jobs to locals. There should be an exception to this policy for highly skilled recruitment. @siddaramaiah@DKShivakumar@PriyankKhargehttps://t.co/itYWdHcMWw
— Kiran Mazumdar Shaw (@kiranshaw) July 17, 2024
Reacting to her post, Karnataka Minister for Information Technology and Biotechnology Priyank Kharge said, “We will not implement any adverse rules or laws without due consultation with stakeholders.”
“Karnataka has always led the country in economic growth and will continue to do so in the future,” he said.
Noting that Karnataka is the fourth largest technology cluster in the world, number one in the India Innovation Index and number one in IT services exports, he said, “The state has been able to achieve these milestones and many other achievements because our government has consistently worked with all stakeholders to come up with policies and schemes that promote investments and create more employment opportunities.”
“As always, we will consult with industry, trade associations and thought leaders to foster a favourable environment for investment and job creation for local people while meeting the needs of our global workforce,” he said.
Karnataka is the fourth largest technology cluster in the world and a leader in the country in many sectors.
Ranked #1 on India Innovation Index
No. 1 in IT service exports
Top 3 countries in terms of foreign direct investment inflows
India has a 40% share of electronics design.
In machine tools… https://t.co/Sh2fJkE5rG
— Priyank Karge / ಪ್ರಿಯಾಂಕ್ ಖರ್ಗೆ (@PriyankKharge) July 17, 2024
Many other leading figures in the industry have also voiced opposition to the ‘Karnataka Employment of Local Candidates in Industries, Factories and Other Establishments Bill, 2024’, which was approved by Chief Minister Siddaramaiah’s led Cabinet on Monday.
The bill would require companies in India’s IT capital to give preference to local hires for 70% of non-management positions and 50% of management positions, but the state government has suspended consideration of the bill following backlash.
Karnataka quota bill controversy
Mohandas Pai, a former chief financial officer at Infosys, called the bill “discriminatory” and “regressive.”
“This bill must be scrapped. It is discriminatory, regressive and unconstitutional. It’s a fascist bill, like Animal Farm,” he said on X.
The National Association of Software and Services Companies (NASSCOM) also expressed disappointment and concern over Karnataka’s new bill that will mandate reservation of local residents in private sector jobs.
“NASCOM and its members are disappointed and express deep concern over the passing of the Karnataka Local Industries Establishment and Employment Bill, 2024,” the organisation said in a statement.
“Amid a shortage of local skilled talent, the restrictions could force companies to relocate,” it said.