Lagatar24 Desk
New Delhi: Sameer Nigam, CEO and co-founder of PhonePe, has publicly criticized the Karnataka government’s private jobs quota bill, which seeks to reserve a substantial portion of private sector jobs for local residents. In a post on X, Nigam, who has created over 25,000 jobs nationwide through his companies, labeled the bill as unfair to those who have lived in multiple states due to their parents’ occupations.
“I am 46 years old. Never lived in a state for 15+ years. My father worked in the Indian Navy. Got posted all over the country,” Nigam wrote on X. He questioned whether his children, who have grown up in Karnataka, “don’t deserve jobs in their home city,” despite his contributions to job creation across India. He concluded his post with a single word: “Shame.”
The Karnataka State Employment of Local Candidates in the Industries, Factories, and Other Establishments Bill, 2024, introduced on July 16, mandates that 50% of management-level jobs and 70% of non-management-level jobs be reserved for locals.
State Industries Minister M B Patil defended the bill, stating that it aims to protect the interests of Kannadigas while balancing the needs of industries. IT Minister Priyank Kharge added that the bill’s primary goal is to create more job opportunities for local residents.
However, industry stakeholders are concerned about the bill’s potential impact on the state’s economy, startups, and IT sector. NASSCOM warned that the restrictions could drive startups and IT companies out of Karnataka, resulting in a loss of investment and jobs. Reports also indicate that companies might face a shortage of skilled talent, as they struggle to find local candidates with the necessary skills.
TV Mohandas Pai, partner at Arin Capital and former CFO of Infosys, described the bill as “regressive, unnecessary, draconian, unconstitutional, and illegal.” Biocon chairperson Kiran Mazumdar-Shaw echoed these sentiments, expressing concerns that the bill could undermine Karnataka’s position as a leading tech hub and affect the availability of skilled talent. While larger IT firms might relocate to neighboring states, smaller companies based in Bengaluru might not have this option, putting them at a disadvantage.
Due to the widespread backlash, the Karnataka government has decided to put the bill on hold.
