Karnataka Reservation: Mohandas Pai calls it discriminatory & regressive, Kiran Mazumdar-Shaw says 'we need skilled talent'

Industry leaders in Karnataka have voiced objections against the Karnataka reservation proposals, calling the move "discriminatory" and expressing concerns about potential repercussions for the tech industry. In a significant move, the Karnataka cabinet has greenlit the draft State Employment of Local Candidates in Industries Factories and Other Establishments Bill, drawing swift and sharp criticism from notable figures. The bill, aimed at prioritizing local employment, has raised concerns about its potential impact on investment and the tech sector in the state.

Prominent voices like Kiran Mazumdar-Shaw and TV Mohandas Pai have openly criticized the state government's decision. Kiran Mazumdar-Shaw, Executive Chairperson of Biocon Ltd, voiced her concerns, stating, "As a tech hub, we need skilled talent. While the intention is to boost local employment, we must ensure it doesn't jeopardize Karnataka's leadership in technology. There should be provisions exempting highly skilled roles from this policy."

TV Mohandas Pai, former CFO of Infosys, condemned the bill, labeling it as "discriminatory" and "regressive." He asserted, "This bill must be scrapped. It's akin to fascism. How can the government dictate private sector hiring practices? This move is reminiscent of Orwell's Animal Farm. It's unbelievable that @INCIndia supports such a bill."


The approved bill mandates that 50% of management positions and 75% of non-management roles in private sectors, including IT, be reserved for Kannadigas. Scheduled for introduction in the current assembly session, the bill allows companies to seek exemptions under specific conditions. Non-compliance will incur fines ranging from ₹10,000 to ₹25,000, with an additional daily penalty until the employment quota is met.

Moreover, the bill stipulates that all 'C' and 'D' category blue-collar positions must be filled exclusively by Kannadigas. This move aims to enhance local employment but has sparked a heated debate on its economic implications and regulatory reach.

The approval of this bill marks a pivotal moment in Karnataka's economic policy, sparking a broader discussion on the balance between local employment mandates and maintaining the state's competitive edge in sectors critical to its growth.