The Karnataka government has paused a bill requiring reservation for locals in the private sector following significant backlash from the industry. This decision came just hours after the state cabinet approved the bill, which suggested that Kannadigas should fill 50 percent of management roles and 75 percent of non-management roles in the private sector.

The Karnataka State Employment of Local Candidates in the Industries, Factories, and Other Establishments Bill, 2024, was expected to be presented in the Assembly

Chief Minister Siddaramaiah, along with his ministers, praised the bill and described his government as “pro-Kannada.” He emphasized that their focus was on “promoting the welfare of Kannadigas.”

However, the bill faced criticism from the IT industry, which argued that it would hinder the growth of the tech sector in Bengaluru and affect job opportunities. The software industry body Nasscom expressed serious concerns, suggesting that the bill could undermine progress, drive away companies, and negatively impact startups. They emphasized that attracting global firms and skilled workers is crucial for maintaining a competitive edge, and that a dual strategy—both attracting global talent and investing in local talent development—is essential for becoming a key technology hub.