Parochial economics

Karnataka's proposed job reservation law is regressive

The Karnataka Cabinet has added a twist to a controversy roiling India’s business community by mandating a reservation for locals in private-sector jobs. The Bill, which has now been put on hold, mandates 50 per cent reservation for locals in management and 75 per cent in non-management positions. Unsurprisingly, this proposal has evoked a sharp response from businesses in Bengaluru, the centre for information technology, startups, global capability centres (GCC) and pharma industries – all racehorses for the Indian economy. The National Association of Software and Services Companies has already issued a statement expressing “disappointment” and sought