Outsiders stay away: Karnataka's 'locals only' quotas can hit firms and jobs

livemint.com:

Mint explains the domino impact this decision can have on employment and investments across sectors: The IT and ITes sector, which employs millions, has warned that investments will dry up on the back of such protectionist measures. Industry body Nasscom that represents the IT companies said it was "seriously concerned" and urged the state government to withdraw the bill. In a statement on Wednesday, the industry body said the tech sector contributes 25% to the state's GDP.

Such a step will “drive away companies, and stifle startups, especially when more GCCs are looking to invest" in Karnataka. At the same time, the restrictions could force companies to relocate as local skilled talent becomes scarce. The management cadre are those who are employed in administrative, technical roles while non-management includes those in clerical posts—skilled, semi-skilled, unskilled.

Those employed on contracts across factories and industries too will go through a sifting process, and companies which do not adhere to these rules will be penalized. The "local" candidate for a post in the state will be someone born in Karnataka, who has spent at least 15 years in the state and can speak Kannada. A candidate has to provide school certificates so that the authorities can verify claims.

Those employed in C&D categories have to be from the state and will include mechanics, technicians, line managers, cashiers etc. According to recruiters and lawyers, while the aim of the proposed bill may be to provide more jobs for locals, it will lead to delays in projects as Karnataka—like all other states—is grappling with the lack of adequate talent. The migrant workforce in the state has had important role in infrastructure development and