'Investors Need Not To Worry': DK Shivakumar On Karnataka's Decision On Job Reservation

BENGALURU: Karnataka Deputy Chief Minister DK Shivkumar on Wednesday spoke on the state government's decision to reserve jobs in the private sector for Kannadigas and emphasized that investors need not be concerned. The Karnataka state cabinet on Monday approved a bill enforcing 50 per cent reservation for administrative posts and 75 per cent for non-administrative posts for Kannadigas in private industries.

While speaking with the reporters, Shivkumar said, "No investors need to worry. We want investors to come to Karnataka. There are certain sections of the people who are talented and have come from outside the state. We want them to work in Karnataka." He added further, "Bengaluru's population has grown to 1.4 crores because of the outsiders coming here to work. We don't want to harm anyone. We just want to give them (local people) scope." There are some suggestions which have come on this issue, we are looking at it."

The deputy CM further said that they are more worried than the employer and the employee. "We will see where we can accommodate Kannadigas," Shivkumar said. On being asked about Nasscom's statement on the decision, Shivkumar said, "Nasscom should not be disappointed, we will listen to them."

Industry body Nasscom, which represents the technology and software landscape in the country, expressed its concern regarding the passage of the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024. Expressing its disappointment, Nasscom urged the state government to withdraw the Bill.

"Nasscom members are seriously concerned about the provisions of this bill and urge the state government to withdraw the bill. The bill's provisions threaten to reverse this progress, drive away companies, and stifle startups, especially when more global firms (GCCs) are looking to invest in the state. At the same time, the restrictions could force companies to relocate as local skilled talent becomes scarce, the statement read.

Nasscom said that the tech sector contributes to 25 per cent of the state's Gross Domestic Product (GDP), houses a quarter of the country's digital talent, over 11,000 startups, and 30 per cent of the total GNU Compiler Collection (GCCs). Restrictions could force companies to relocate as locally skilled talent becomes scarce, the body said.

It further said that the bill's provisions threaten to reverse what the state has achieved in the field of technology and software. It further added that in today's highly competitive landscape, knowledge-led businesses will locate where talent is as attracting skilled workers is crucial for success.

"Nasscom is seeking an urgent meeting for industry representatives with state authorities to discuss the concerns and prevent the state's progress from being derailed," the industry body urged.