The Karnataka state government’s draft bill that aims to reserve 50% of management jobs and 70% of non-management jobs for its locals has sparked outrage across the state, with migrant and multilingual tech workers lashing out at the proposed regulation.

The bill that was recently cleared by the state cabinet has been temporarily put on hold as Chief Minister Siddaramiah said, “This will be revisited and decided in the coming days.”

PhonePe CEO and founder Sameer Nigam pointed out how the bill could make life difficult for job-seekers from army families or those who moved around frequently.

“I am 46 years old. Never lived in a state for 15+ yrs[.]My father worked in the Indian Navy. Got posted all over the country. His kids don’t deserve jobs in Karnataka? I build companies. Have created 25000+ jobs across India! My kids dont deserve jobs in their home city Shame.,” posted Nigam on X on Wednesday.

(For top technology news of the day, subscribe to our tech newsletter Today’s Cache)

The National Association of Software and Service Companies (NASSCOM) trade assocation released a statement condemning the idea and expressing its disappointment with the passage of the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024.

“With over a quarter of India’s digital talent, the state houses over 30% of the total GCCs and around 11000 start-ups. Its deeply disturbing to see this kind of bill which will not only hamper the growth of the industry, impact jobs and the global brand for the state,” noted NASSCOM in its statement, adding that the bill could drive out companies, impact foreign investments, and hurt start-ups.

NASSCOM called on the state government to withdraw the bill, and for further meetings to take place regarding the industry’s concerns.

Responding to the statement, Andhra Pradesh’s Information Technology and Communication & Industries Minister Nara Lokesh invited tech companies to shift to his state instead.

“Dear @NASSCOM members, We understand your disappointment. We welcome you to expand or relocate your businesses to our IT, IT services, AI and data center cluster at Vizag. We will offer you best-in-class facilities, uninterrupted power, infrastructure and the most suitable skilled talent for your IT enterprise with no restrictions from the Government. Andhra Pradesh is ready to welcome you. Please get in touch!,” posted Lokesh.

Siddaramaiah posted on X that the bill was still in the preparation stage and that a final decision would be taken after talks.

“The draft bill intended to provide reservations for Kannadigas in private sector companies, industries, and enterprises is still in the preparation stage. A comprehensive discussion will be held in the next cabinet meeting to make a final decision,” he posted.

Karnataka’s Minister for Large and Medium Industries, M.B. Patil, also said that the bill was withheld until further consultations could take place, as he called on industry leaders not to panic.