Infosys, Biocon among stocks that will be in focus on Thursday amid Karnataka job reservation bill

Karnataka, renowned as a leading silk manufacturer in India, has also gained prominence as a major IT hub, hosting numerous software companies. Beyond its IT sector, Karnataka boasts a diverse industrial landscape across various fields.

The state is home to several renowned companies that have excelled in their respective domains, contributing significantly to Karnataka's economic diversity. Moreover, Karnataka stands at the forefront of India's biotechnology sector, further enhancing its reputation as a hub for innovation and industry leadership.

The Karnataka government recently approved a significant policy change aimed at altering the private sector job market landscape. In a cabinet meeting chaired by Chief Minister Siddaramaiah, the Karnataka State Employment of Local Candidates in Industries, Factories, and Other Establishments Bill 2024 was endorsed.

Reports indicate the bill will be presented during the ongoing Assembly session. If passed, the legislation proposes reserving 50% of management positions and 75% of non-management roles for local candidates within the private sector. Additionally, the cabinet approved the full 100% reservation for locals in "C&D" grade positions in the private industries.

The bill drafted by the Labour Department claimed that jobs in industries operating in the state are going to the states of North India.

Announcing the decision on social media platform X, the Chief Minister emphasised, "The Cabinet meeting held yesterday approved a bill to make it mandatory to hire 100% Kannadigas for "C and D" grade posts in all private industries in the state. We are a pro-Kannada government. Our priority is to look after the welfare of the Kannadigas."

This legislative move follows public calls for job reservations in both the private and public sectors across Karnataka. Earlier demonstrations by Kannada organisations underscored demands for immediate implementation of the Sarojini Mahishi report.

Named after the former Union Minister and Karnataka's first female MP, the Mahishi Committee submitted the report in 1984, recommending comprehensive measures including full local reservation in job sectors.

This decision by the state government has drawn sharp criticism from industry leaders, who argue that it is discriminatory. They have raised concerns that the tech industry, in particular, may face adverse consequences as a result.

Kiran Mazumdar-Shaw, the Executive Chairperson of Biocon Limited, said that the state should not let this bill affect its leading position in the domain of technology and that there should be exemptions for highly skilled recruitment.

"As a tech hub, we need skilled talent, and whilst the aim is to provide jobs for locals, we must not affect our leading position in technology by this move. There must be caveats that exempt highly skilled recruitment from this policy," Shaw posted on 'X'.

RK Misra, the Co-Chairman of ASSOCHAM Karnataka and the Co-Founder of YULU, called the bill shortsighted and said that if a government officer is appointed in every private company to monitor its implementation, it will scare away Indian IT and Global Capability Centers.

Karnataka headquartered stocks

According to recent available data, over 140 companies headquartered in Karnataka, including prominent names like Infosys, MphasiS, Wipro, Biocon, ITI, and United Breweries, are listed on Indian stock exchanges. 

Investors will be particularly attentive to these stocks on Thursday due to significant recent developments in Karnataka. This focus comes as markets are closed on Wednesday in observance of Muharram.

Among the other publicly listed companies headquartered in Karnataka are Canara Bank, Ujjivan Financial Services, ABB India, Bharat Electronics, Karnataka Bank, Can Fin Homes, Coffee Day, Hatsun Agro Products, Heidelberg Cement India, Royal Orchid Hotels, Subex, and VST Tillers Tractors.

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.