Karnataka has chosen to go against the national policy of doing away with fiscal barriers between states. It plans to reserve for locals all blue collar jobs in private companies which have asked for government aid. It will run counter to labour movement across India. The Chief Minister of Karnataka, Siddaramaiah must abandon the short sighted policy. It will adversely affect Karnataka’s economic status. Besides, it can lead to the adoption of a similar policy in other states which could be to the detriment of Karnataka’s interests. Job quotas betray failure of governance and lack of good education. The Karnataka government is trying to offset the situation with a short cut. The state’s industrial policy will be undermined by the job quota though it aims to generate a growth rate of 12%. The state also wants to increase the contribution of the manufacturing sector to its economy from about 17% to 20%. But job reservation will lead to a flight of investments from other states.
The Karnataka government is of course alive to the hazards created by the job reservation policy. It is for that reason that information technology and bio technology have been left out of the ambit of the reservation policy. The state policy will naturally induce totally private companies to show a preference for local hands. It is understandable for the Karnataka government to create employment for sons of the soil. But that calls for improvement of education and skills in the state.