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‘Tough to run companies’: Bengaluru founders lash out over Kannadiga reservation Bill
As Bengaluru has over five lakh registered start-ups and global MNCs, the latest ‘reservations for Kannadigas’ Bill created a discussion among business leaders
The controversial Bill that is approved by the Karnataka cabinet will mandate the inclusion of 50-75% Kannadigas in all sorts of private jobs is creating a panic among Bengaluru founders. As the city is a key place with over five lakh registered start-ups and global MNCs, the latest ‘reservations for Kannadigas’ Bill created a discussion among business leaders and start-up founders.
What are founders saying on the Kannadiga reservation Bill?
Speaking to Hindustan Times, Vyom Bhatia, founder of social media marketing agency Marty Matin, said, “The main reason why many of the founders pick Bengaluru as their place for the entrepreneurial journey is that it has a great pool of talent. The city has been known for its welcoming and friendly nature. But this latest Bill came as a surprise for many founders in Bengaluru. Currently, we only hire employees based on their skills and their capability to help brands go global. It would be tough for us to run companies if such Bills are passed, and we are forced to hire people on a regional basis.”
Bhatia said that he will have to move his company's base from Bengaluru and look for other options. “I respect the government's decision. But I am considering moving the business to Hyderabad or Gurugram if such Bills are passed. There is significant confusion among our employees,” he added.
The draft State Employment of Local Candidates in Industries Factories and Other Establishments Bill will also mandate 100% Kannadigas for group ‘C’ and ‘D’ blue-collar jobs.
Subrahnil Gangabasi, CEO of HCD Dream Interior Solutions in Bengaluru, said, “The blue-collar jobs depend a lot on skill sets. I have carpenters and plumbers from various parts of the country, including Karnataka. From my observation, these workers learn skills from each other, which will enhance their productivity. I have so many workers from Rajasthan who eventually learned Kannada from the local workers. They can communicate well with clients and deal with their requirements. It would not be a great move for me to hire a carpenter or plumber solely based on his regional identity and ignore his skill.”
He also highlighted that promoting local language among blue-collar workers would benefit the state. “Many of my clients called me and asked if they should stop the home interior work and purchase of real estate after news broke about this Bill. Though the Bill is yet to be passed, it created confusion among many non-Kannadigas living in Bengaluru. Instead of asking companies to stop hiring non – Kannadigas, the government can ask management to promote the Kannada language in the workforce,” he added.
Bengaluru also has many fintech start-ups which have employees from various IITs and IIMs across the country. Mr Anuj Srivastava, Co-founder of OnFinance.ai said, “At the moment, if we have two to three employees from Karnataka, around 60-70 employees are from other parts of the country. The Bill is beneficial for Kannadigas as it prioritises locals. The manufacturing sector could have an advantage, which is crucial for economic growth. Second is local talent utilisation - better integration of local talent and skills.”
He also stressed that different cities have experts in other sectors. “We are a banking tech company, and most financial analysts are from Mumbai. This is not to say there is lesser talent among locals, but certain cities have expertise in certain domains. For example, we may not be able to find graduates from BITS or IIT from within Karnataka, and Mumbai is called the financial capital of India. Hence, financial knowledge is larger and more easily found there,” Srivastava rounded off.
